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Apparently the Kubernetes Provider had a deleteUnreachable setting in the provider config in the state. Manually overwriting that setting to true actually allowed the refresh to continue. Shouldn't the environment variable have preference over the provider option?

Okay, I figured out why the provider option was set. Apparently, when you use the `PULUMI_K8S_DELETE_UNREACHABLE` environment variable as false, it gets persisted in the provider config on every mutation (which happened in our pipelines).

Conditionally setting the environment variable (and leaving it empty on 'false') helped here. I think this either warrants a change or should be documented a bit better