Adding OCP bmh as openstackbaremetalset fails

Hi, We have installed RHOSP 16.2 control plane as VMs on RHOCP 4.12, now trying to add the bmh to openstack namespace as baremetalhost but osp director controller throws errors as Unable to find 1 requested BaremetalHost count (0 in use, 0 available).
Can someone please comment what we are missing here?

System isn't taking bmhNamespace in osbms config file.

bmh availability in openshift-machine-api:
modl4osp09 available true 28h

osbms file:
apiVersion: osp-director.openstack.org/v1beta1
kind: OpenStackBaremetalSet
metadata:
name: compute
namespace: openstack
spec:
count: 1
# baseImageUrl: https://httpd-test-ocpadmin-httpd.apps.com/rhel-8.4-x86_64-kvm.qcow2
deploymentSSHSecret: osp-controlplane-ssh-keys
# If you manually created an OpenStackProvisionServer, you can use it here,
# otherwise the director Operator will create one for you (with

baseImageUrl