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Describe the bug
When creating a CAPI AWS cluster, switching the Kubernetes version from K3s to RKE2 clears the cloud-provider-name setting. Clicking Create then fails with the error "Cloud provider must be set to External when using CAPA", even though the user never explicitly changed the cloud provider setting.
To Reproduce
Install the CAPA UI extension
Navigate to Cluster Management → Create → select CAPI AWS
In the Kubernetes version dropdown, select a K3s version
Switch back to an RKE2 version
Fill in remaining required fields and click Create
Result
cloud-provider-name is cleared when switching distros, causing a validation error: "Cloud provider must be set to External when using CAPA"
Expected Result
cloud-provider-name is automatically set to external when RKE2 is selected for a CAPI cluster (as it is on initial load)
This is a .backport issue for #18300, automatically created via GitHub Actions workflow initiated by @eva-vashkevich
Original issue body:
Setup
Describe the bug
When creating a CAPI AWS cluster, switching the Kubernetes version from K3s to RKE2 clears the cloud-provider-name setting. Clicking Create then fails with the error "Cloud provider must be set to External when using CAPA", even though the user never explicitly changed the cloud provider setting.
To Reproduce
Result
cloud-provider-name is cleared when switching distros, causing a validation error: "Cloud provider must be set to External when using CAPA"
Expected Result
cloud-provider-name is automatically set to external when RKE2 is selected for a CAPI cluster (as it is on initial load)
Screenshots
Screen.Recording.2026-07-07.at.4.30.58.PM.mov
Additional context
Related to #16539