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This does not seem like normal proxy behavior. Very odd that the API server health would flip-flop. The proxy health check logic for the API server looks like this:

const resp = await fetch(ctx.growthbookApiHost + "/healthcheck");
    const data = await resp.json();
    if (data?.healthy) checks.apiServer = "up";

I wonder if you can simulate this check (perhaps inside a pod) to see if its a general k8s / istio thing, or a GB proxy issue

I will create a dummy pod with a python script that checks the healthcheck endpoint and see if it flips, but I doubt it since the pod healthcheck would also fail and I would receive alerts