Flannel DaemonSet fails to start due to iptables-restore error during chain teardown

[chymy]

kubernetes version: 1.34.0
flannel version: 0.27.4
flannel-cni-plugin version: 1.8.0

When deploying Flannel with the provided configuration, the flannel pods fail to start with iptables-restore errors during the cleanup of previous iptables rules.

kube-flannel-cfg ConfigMap:

apiVersion: v1
data:
  cni-conf.json: |
    {
      "name": "cbr0",
      "cniVersion": "0.3.1",
      "plugins": [
        {
          "type": "flannel",
          "delegate": {
            "hairpinMode": true,
            "isDefaultGateway": true
          }
        },
        {
          "type": "portmap",
          "capabilities": {
            "portMappings": true
          }
        }
      ]
    }
  net-conf.json: |
    {
      "Network": "172.16.0.0/12",
      "EnableNFTables": false,
      "SubnetLen": 24,
      "Backend": {
        "Type": "vxlan"
      }
    }
kind: ConfigMap
metadata:
  labels:
    app: flannel
    k8s-app: flannel
    tier: node
  name: kube-flannel-cfg
  namespace: kube-system

DaemonSet yaml:

apiVersion: apps/v1
kind: DaemonSet
metadata:
  labels:
    app: flannel
    k8s-app: flannel
    tier: node
  name: kube-flannel
  namespace: kube-system
spec:
  selector:
    matchLabels:
      app: flannel
      k8s-app: flannel
  template:
    metadata:
      labels:
        app: flannel
        k8s-app: flannel
        tier: node
    spec:
      affinity:
        nodeAffinity:
          requiredDuringSchedulingIgnoredDuringExecution:
            nodeSelectorTerms:
            - matchExpressions:
              - key: kubernetes.io/os
                operator: In
                values:
                - linux
      containers:
      - args:
        - --ip-masq
        - --kube-subnet-mgr
        command:
        - /opt/bin/flanneld
        env:
        - name: POD_NAME
          valueFrom:
            fieldRef:
              fieldPath: metadata.name
        - name: POD_NAMESPACE
          valueFrom:
            fieldRef:
              fieldPath: metadata.namespace
        - name: EVENT_QUEUE_DEPTH
          value: "5000"
        - name: CONT_WHEN_CACHE_NOT_READY
          value: "false"
        image: ...
        name: kube-flannel
        securityContext:
          capabilities:
            add:
            - NET_ADMIN
            - NET_RAW
          privileged: false
        volumeMounts:
        - mountPath: /run/flannel
          name: run
        - mountPath: /etc/kube-flannel/
          name: flannel-cfg
        - mountPath: /run/xtables.lock
          name: xtables-lock
      hostNetwork: true
      initContainers:
      - args:
        - -f
        - /flannel
        - /opt/cni/bin/flannel
        command:
        - cp
        image: ...
        name: install-cni-plugin
        volumeMounts:
        - mountPath: /opt/cni/bin
          name: cni-plugin
      - args:
        - -f
        - /etc/kube-flannel/cni-conf.json
        - /etc/cni/net.d/10-flannel.conflist
        command:
        - cp
        image: ...
        name: install-cni
        volumeMounts:
        - mountPath: /etc/cni/net.d
          name: cni
        - mountPath: /etc/kube-flannel/
          name: flannel-cfg
      priorityClassName: system-node-critical
      serviceAccountName: flannel
      tolerations:
      - effect: NoSchedule
        operator: Exists
      volumes:
      - hostPath:
          path: /run/flannel
        name: run
      - hostPath:
          path: /opt/cni/bin
        name: cni-plugin
      - hostPath:
          path: /etc/cni/net.d
        name: cni
      - configMap:
          name: kube-flannel-cfg
        name: flannel-cfg
      - hostPath:
          path: /run/xtables.lock
          type: FileOrCreate
        name: xtables-lock
  updateStrategy:
    rollingUpdate:
      maxUnavailable: 20%
    type: RollingUpdate

Log Output:

I1128 08:54:03.668577       1 iptables.go:50] Starting flannel in iptables mode...
W1128 08:54:03.668609       1 main.go:577] no subnet found for key: FLANNEL_NETWORK in file: /run/flannel/subnet.env
W1128 08:54:03.668621       1 main.go:577] no subnet found for key: FLANNEL_SUBNET in file: /run/flannel/subnet.env
W1128 08:54:03.668632       1 main.go:612] no subnet found for key: FLANNEL_IPV6_NETWORK in file: /run/flannel/subnet.env
W1128 08:54:03.668658       1 main.go:612] no subnet found for key: FLANNEL_IPV6_SUBNET in file: /run/flannel/subnet.env
I1128 08:54:03.668666       1 iptables.go:101] Current network or subnet (172.16.0.0/12, 172.16.3.0/24) is not equal to previous one (0.0.0.0/0, 0.0.0.0/0), trying to recycle old iptables rules
I1128 08:54:03.757999       1 iptables_restore.go:94] trying to run with payload *nat
-D POSTROUTING -m comment --comment "flanneld masq" -j FLANNEL-POSTRTG
-D FLANNEL-POSTRTG -s 0.0.0.0/0 -d 0.0.0.0/0 -m comment --comment "flanneld masq" -j RETURN
-D FLANNEL-POSTRTG -s 0.0.0.0/0 -d 0.0.0.0/0 -m comment --comment "flanneld masq" -j RETURN
COMMIT
E1128 08:54:03.759545       1 iptables.go:450] Failed to teardown iptables: unable to teardown iptables: unable to run iptables-restore (, iptables-restore: line 4 failed: Bad rule (does a matching rule exist in that chain?).
): exit status 1
E1128 08:54:03.759574       1 main.go:414] Failed to setup masq rules, unable to teardown iptables: unable to run iptables-restore (, iptables-restore: line 4 failed: Bad rule (does a matching rule exist in that chain?).
): exit status 1
I1128 08:54:03.759619       1 main.go:503] Stopping shutdownHandler...