use ServerSideDiff for policies component (#7348)

* Revert "use ServerSideDiff for policies in stg (#8032)"

This reverts commit d3d4108.

* use ServerSideDiff for policies component

Applying Kyverno's Best Practices on integration with ArgoCD:
https://kyverno.io/docs/installation/platform-notes/\#configuration-best-practices

Signed-off-by: Francesco Ilario <[email protected]>

---------

Signed-off-by: Francesco Ilario <[email protected]>

Author: filariow

argo-cd-apps/base/member/infra-deployments/policies/policies.yaml

@@ -38,6 +38,8 @@ spec:
   template:
     metadata:
       name: policies-{{nameNormalized}}
+      annotations:
+        argocd.argoproj.io/compare-options: ServerSideDiff=true,IncludeMutationWebhook=true
     spec:
       project: default
       source:

argo-cd-apps/overlays/development/kustomization.yaml

@@ -203,11 +203,6 @@ patches:
       kind: ApplicationSet
       version: v1alpha1
       name: policies
-  - path: kyverno-argocd-diff.yaml
-    target:
-      kind: ApplicationSet
-      version: v1alpha1
-      name: policies
   - path: development-overlay-patch.yaml
     target:
       kind: ApplicationSet

argo-cd-apps/overlays/development/kyverno-argocd-diff.yaml

@@ -17,8 +17,3 @@ patches:
       kind: ApplicationSet
       version: v1alpha1
       name: multi-platform-controller
-  - path: kyverno-argocd-diff.yaml
-    target:
-      kind: ApplicationSet
-      version: v1alpha1
-      name: policies