Validated on :
[miyadav@miyadav ~]$ oc get clusterversion
NAME      VERSION                             AVAILABLE   PROGRESSING   SINCE   STATUS
version   4.8.0-0.nightly-2021-08-22-035234   True        False         24m     Cluster version is 4.8.0-0.nightly-2021-08-22-035234
[miyadav@miyadav ~]$ 


Scaled machineset by 1 below logs confirm status getting set before creation 

.
.
.
.
.
I0824 03:49:22.486348       1 reconciler.go:265] miyadav-2408-fkrzw-worker-us-east-2b-gcjjh: Instance does not exist
I0824 03:49:22.486371       1 controller.go:357] miyadav-2408-fkrzw-worker-us-east-2b-gcjjh: setting phase to Provisioning and requeuing
I0824 03:49:22.486377       1 controller.go:482] miyadav-2408-fkrzw-worker-us-east-2b-gcjjh: going into phase "Provisioning"
I0824 03:49:22.493380       1 controller.go:174] miyadav-2408-fkrzw-worker-us-east-2c-shfns: reconciling Machine
I0824 03:49:22.493395       1 actuator.go:104] miyadav-2408-fkrzw-worker-us-east-2c-shfns: actuator checking if machine exists
I0824 03:49:22.549347       1 reconciler.go:265] miyadav-2408-fkrzw-worker-us-east-2c-shfns: Instance does not exist
I0824 03:49:22.549365       1 controller.go:357] miyadav-2408-fkrzw-worker-us-east-2c-shfns: setting phase to Provisioning and requeuing
I0824 03:49:22.549372       1 controller.go:482] miyadav-2408-fkrzw-worker-us-east-2c-shfns: going into phase "Provisioning"
I0824 03:49:22.557647       1 controller.go:174] miyadav-2408-fkrzw-worker-us-east-2a-wcrwz: reconciling Machine
.
.


Moved to VERIFIED .
.

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory (OpenShift Container Platform 4.8.9 bug fix), and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://access.redhat.com/errata/RHBA-2021:3247