3scale installation using Azure Files as storage class

Issue

We are trying to use Azure Files as Storage Class and updated it as default.
However, mysql service is failing with below error.
We tried recreating 3scale multiple times and same issue where exists whenever we use Azure File Storage Class.
Please note that the same works as soon as we use Managed-premium class.

First Instance of system-mysql pod terminates without any error, below is the last message for that:

2022-09-02T11:25:22.994102Z 0 [Note] Event Scheduler: Loaded 0 events
2022-09-02T11:25:22.994349Z 0 [Note] /opt/rh/rh-mysql57/root/usr/libexec/mysqld: ready for connections.
Version: '5.7.24'  socket: '/tmp/mysql.sock'  port: 0  MySQL Community Server (GPL)
2022-09-02T11:25:22.996047Z 2 [Note] Your password has expired. To log in you must change it using a client that supports expired passwords.
---> 11:25:22     MySQL started successfully
---> 11:25:22     Setting password for MySQL root user ...
mysql: [Warning] Using a password on the command line interface can be insecure.
Checking if update is needed.
Checking server version.
Running queries to upgrade MySQL server.

Subsequent restarts of system-mysql pod gives the below error and thus going in CrashLoop:

2022-09-02T11:16:21.035283Z 0 [Note] /opt/rh/rh-mysql57/root/usr/libexec/mysqld: ready for connections.
Version: '5.7.24'  socket: '/tmp/mysql.sock'  port: 0  MySQL Community Server (GPL)
---> 11:16:21     MySQL started successfully
=> sourcing 40-datadir-action.sh ...
---> 11:16:21     Running datadir action: upgrade-warn
---> 11:16:21     MySQL server version check passed, both server and data directory are version 5.7.
=> sourcing 50-passwd-change.sh ...
---> 11:16:21     Setting passwords ...
ERROR 1396 (HY000) at line 1: Operation ALTER USER failed for 'mysql'@'%'

PVC are getting bound properly:

$ oc get pvc
NAME                    STATUS   VOLUME                                     CAPACITY   ACCESS MODES   STORAGECLASS            AGE
backend-redis-storage   Bound    pvc-d32693af-5074-4477-e2d4-4fac7f89a9a4   1Gi        RWO            azure-file-3scale-poc   9m17s
mysql-storage           Bound    pvc-2a23a935-49a7-4601-8183-2583030c6d15   1Gi        RWO            azure-file-3scale-poc
   9m17s
system-redis-storage    Bound    pvc-50071511-6fbb-4331-a62a-8bd89718834d   1Gi        RWO            azure-file-3scale-poc   9m17s
system-storage          Bound    pvc-e0b202b5-9912-4ba0-aef1-62e06183a11d   1Gi        RWX            azure-file-3scale-poc   9m17s