use ServerSideDiff for policies component

[filariow]

Applying Kyverno's Best Practices on integration with ArgoCD to all cluster.

This PR reverts #8032

Requires:

• use ServerSideDiff for policies in stg #8032

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

[hugares]

/lgtm

[hugares]

/hold to allow you to merge when you want

[github-actions]

Code Review by Gemini

The changes align with Kyverno's Best Practices for integration with ArgoCD by moving the ServerSideDiff and IncludeMutationWebhook annotations directly into the base ApplicationSet definition. This is a positive change that centralizes the configuration and simplifies the overlay structure.

No bugs or issues were found in the provided changes.

Improvements:

The current change is already an improvement by:

1. Centralizing the argocd.argoproj.io/compare-options annotation in the base ApplicationSet definition.
2. Removing redundant overlay patches (kyverno-argocd-diff.yaml) from development and staging-downstream environments, which simplifies the Kustomize structure and reduces duplication.

No further code changes are suggested as the current implementation correctly applies the best practice.

[sadlerap]

/lgtm
/retest
/hold

Merge this when you're ready.

[openshift-ci]

[APPROVALNOTIFIER] This PR is APPROVED

This pull-request has been approved by: filariow, hugares, sadlerap

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[filariow]

/unhold