Verified in 4.11.0-0.nightly-2022-06-23-153912

Testing https://github.com/openshift/apiserver-library-go/pull/85

1. $ oc create -f -<<EOF
apiVersion: v1
kind: Pod
metadata:
  name: testpod
spec:
  containers:
  - image: quay.io/openshifttest/hello-openshift:openshift
    name: node-hello
    securityContext:
      runAsUser: 100
      capabilities:
        drop: ["ALL"]
      seccompProfile:
        type: "RuntimeDefault"
      allowPrivilegeEscalation: false
EOF

2. $ oc get pod/testpod -o yaml
...
securityContext:
      allowPrivilegeEscalation: false
      capabilities:
        drop:
        - ALL
      runAsNonRoot: true
      runAsUser: 100
      seccompProfile:
        type: RuntimeDefault
...
Expected:       runAsNonRoot: true
Actual:       runAsNonRoot: true

Verified
-----------
Testing https://github.com/openshift/cluster-kube-apiserver-operator/pull/1358

$ oc extract cm/config -n openshift-kube-apiserver --confirm --to=- | jq '' - | jq '.admission.pluginConfig.PodSecurity.configuration.exemptions'
Output:
{
  "usernames": [
    "system:serviceaccount:openshift-infra:build-controller"
  ]
}

Expected: system:serviceaccount:openshift-infra:build-controller
https://github.com/stlaz/cluster-kube-apiserver-operator/blob/aab0cba685e69889087e776e417a96137ab7cef5/bindata/assets/config/defaultconfig.yaml#L31
Actual: system:serviceaccount:openshift-infra:build-controller

Verified
-----------
Testing https://github.com/openshift/oc/pull/1155

1. $ oc edit kubeapiserver cluster
update unsupportedConfigOverrides to
...
  unsupportedConfigOverrides:
    admission:
      pluginConfig:
        PodSecurity:
          configuration:
            apiVersion: pod-security.admission.config.k8s.io/v1beta1
            defaults:
              audit: restricted
              audit-version: latest
              enforce: restricted
              enforce-version: latest
              warn: restricted
              warn-version: latest
            exemptions:
              usernames:
              - system:serviceaccount:openshift-infra:build-controller
            kind: PodSecurityConfiguration
...

2. Wait for all OKAS pods to rotate ( check revision)
$ oc get po -n openshift-kube-apiserver -L revision -l apiserver -w
NAME                                                         READY   STATUS    RESTARTS   AGE     REVISION
kube-apiserver-ip-10-0-128-204.ap-south-1.compute.internal   5/5     Running   0          6m      14
kube-apiserver-ip-10-0-184-69.ap-south-1.compute.internal    5/5     Running   0          9m48s   14
kube-apiserver-ip-10-0-205-172.ap-south-1.compute.internal   5/5     Running   0          2m2s    14

3. $ oc debug node/ip-10-0-149-137.ap-south-1.compute.internal
error: PodSecurity violation error:
Ensure the target namespace has the appropriate security level set or consider creating a dedicated privileged namespace using:
        "oc create ns <namespace> -o yaml | oc label -f - pod-security.kubernetes.io/enforce=privileged pod-security.kubernetes.io/audit=privileged pod-security.kubernetes.io/warn=privileged".

Original error:
pods "ip-10-0-149-137ap-south-1computeinternal-debug" is forbidden: violates PodSecurity "restricted:latest": host namespaces (hostNetwork=true, hostPID=true), privileged (container "container-00" must not set securityContext.privileged=true), allowPrivilegeEscalation != false (container "container-00" must set securityContext.allowPrivilegeEscalation=false), unrestricted capabilities (container "container-00" must set securityContext.capabilities.drop=["ALL"]), restricted volume types (volume "host" uses restricted volume type "hostPath"), runAsNonRoot != true (pod or container "container-00" must set securityContext.runAsNonRoot=true), runAsUser=0 (container "container-00" must not set runAsUser=0), seccompProfile (pod or container "container-00" must set securityContext.seccompProfile.type to "RuntimeDefault" or "Localhost")

Actual error is according to format:
		err = fmt.Errorf("PodSecurity violation error:\n"+
			"Ensure the target namespace has the appropriate security level set "+
			"or consider creating a dedicated privileged namespace using:\n"+
			"\t\"oc create ns <namespace> -o yaml | oc label -f - pod-security.kubernetes.io/enforce=privileged pod-security.kubernetes.io/audit=privileged pod-security.kubernetes.io/warn=privileged\".\n\nOriginal error:\n%w", err)
	}

oc adm must-gather has some issue, will file a non-blocker bug later

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 (Important: OpenShift Container Platform 4.11.0 bug fix and security update), 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/RHSA-2022:5069