RHACM Updating the PlacementRule of a Policy via Git is not working as expected

Solution In Progress - Updated -

Issue

When we update a policy's PlacementRule from matchExpressions to matchLabels, the old matchExpressions are not removed.

See the following example:

apiVersion: apps.open-cluster-management.io/v1
kind: PlacementRule
metadata:
  name: placement-policy-etcdencryption
spec:
  clusterConditions:
  - status: "True"
    type: ManagedClusterConditionAvailable
  clusterSelector:
    matchExpressions:
      - {key: environment, operator: In, values: ["test"]}

if we change it to matchLabels:

apiVersion: apps.open-cluster-management.io/v1
kind: PlacementRule
metadata:
  name: placement-policy-etcdencryption
spec:
  clusterConditions:
  - status: "True"
    type: ManagedClusterConditionAvailable
  clusterSelector:
    matchLabels: {}

We see that the old matchExpression is still present.

apiVersion: apps.open-cluster-management.io/v1
kind: PlacementRule
metadata:
  name: placement-policy-etcdencryption
spec:
  clusterConditions:
  - status: "True"
    type: ManagedClusterConditionAvailable
  clusterSelector:
    matchExpressions: []
    matchLabel: {}

How can it be updated accordingly (replaced)?

Environment

RHACM 2.3,2.4

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