Update listener generation to account for consul VIP

agent/xds/listeners.go

@@ -168,13 +168,22 @@ func (s *ResourceGenerator) listenersFromSnapshotConnectProxy(cfgSnap *proxycfg.
 		// We do not match on all endpoints here since it would lead to load balancing across
 		// all instances when any instance address is dialed.
 		for _, e := range endpoints {
+			if vip := e.Service.TaggedAddresses[structs.TaggedAddressVirtualIP]; vip.Address != "" {
+				uniqueAddrs[vip.Address] = struct{}{}
+			}
+
+			// The virtualIPTag is used by consul-k8s to store the ClusterIP for a service.
+			// We only match on this virtual IP if the upstream is in the proxy's partition.
+			// This is because the IP is not guaranteed to be unique across k8s clusters.
+			if structs.EqualPartitions(e.Node.PartitionOrDefault(), cfgSnap.ProxyID.PartitionOrDefault()) {
 				if vip := e.Service.TaggedAddresses[virtualIPTag]; vip.Address != "" {
 					uniqueAddrs[vip.Address] = struct{}{}
 				}
 			}
-		if len(uniqueAddrs) > 1 {
-			s.Logger.Warn("detected multiple virtual IPs for an upstream, all will be used to match traffic",
-				"upstream", id)
+		}
+		if len(uniqueAddrs) > 2 {
+			s.Logger.Debug("detected multiple virtual IPs for an upstream, all will be used to match traffic",
+				"upstream", id, "ip_count", len(uniqueAddrs))
 		}
 
 		// For every potential address we collected, create the appropriate address prefix to match on.

agent/xds/listeners_test.go

@@ -864,6 +864,7 @@ func TestListenersFromSnapshot(t *testing.T) {
 								Port:    9090,
 								TaggedAddresses: map[string]structs.ServiceAddress{
 									"virtual":                      {Address: "10.0.0.1"},
+									structs.TaggedAddressVirtualIP: {Address: "240.0.0.1"},
 								},
 							},
 						},

agent/xds/testdata/listeners/transparent-proxy.envoy-1-20-x.golden

@@ -42,6 +42,10 @@
               {
                 "addressPrefix": "10.0.0.1",
                 "prefixLen": 32
+              },
+              {
+                "addressPrefix": "240.0.0.1",
+                "prefixLen": 32
               }
             ]
           },