Use istio.sidecar.inject label instead of annotation

[ReToCode]

Partially knative/serving#15521

Proposed Changes

• Use istio.sidecar.inject label instead of annotation

/assign @skonto

[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Project coverage is 66.31%. Comparing base (83d44d7) to head (f5973e9).
Report is 2 commits behind head on main.

Additional details and impacted files

@@           Coverage Diff           @@
##             main    #1895   +/-   ##
=======================================
  Coverage   66.31%   66.31%           
=======================================
  Files          53       53           
  Lines        2084     2084           
=======================================
  Hits         1382     1382           
  Misses        587      587           
  Partials      115      115           

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[matzew]

/lgtm
/approve

[knative-prow]

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