Existing CSV contains:
deployment template
RBAC
ServiceAccount
When deployed as a ClusterExtension the permissions with the deployment are the ones from its CSV. The CE permissions are not added to the deployment. If the service account name is same, there is an conflict when deploying the CE.
Expectation:
The ClusterExtension service account and permissions should be propogated to the deployment. Alternatively, the deployment controller serviceAccount should be overwritten with that listed in the ClusterExtension.