ETP=local is not supported for OVNK in 4.8 and won't be supported. Closing this bug.
I was about to open documentation bug, but I see it is already documented in the "known issues", so no need to do so: https://docs.openshift.com/container-platform/4.8/release_notes/ocp-4-8-release-notes.html#ocp-4-8-known-issues