Cluster upgrade stuck with error "Could not update imagestream "openshift/image-xyz": the object is invalid, possibly due to local cluster configuration"

Issue

• OpenShift cluster upgrade is encountering the following error:

  - message: 'Could not update imagestream "openshift/image-xyz":
      the object is invalid, possibly due to local cluster configuration'
    reason: UpdatePayloadResourceInvalid
    status: 'True'
    type: Failing

  - message: 'Unable to apply 4.8.18: some cluster configuration is invalid'
    reason: UpdatePayloadResourceInvalid
    status: 'True'
    type: Progressing

• Error observed in the cluster-version-operator pod logs:

 E1116 14:54:34.5979341 task.go:112] error running apply for imagestream "openshift/image-xyz" (400 of 681): ImageStream.image.openshift.io "image-xyz" is invalid: [spec.tags[latest].from.name: Forbidden: registry "quay.io" not allowed by whitelist: "quay.io/openshift-release-dev:443", "registry.redhat.io:443", "registry.access.redhat.com:443", "test.registry.com:443", and 2 more ..., spec.tags[48.84.202110270303-0].from.name: Forbidden: registry "quay.io" not allowed by whitelist: "quay.io/openshift-release-dev:443", "registry.redhat.io:443", "registry.access.redhat.com:443", "test.registry.com:443", and 2 more ...]