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that by default this is set to false. However, this was different than what I experienced, since labeling a namespace with ingress-use-waypoint: true was working without any configurion in an Ambient installation. When I asked in istio slack, I got the response that
The feature is now enabled by default when installing with the ambient enabled
...
Enabling ambient mode also includes a number of features which are relevant to ambient functioning
IMO this information is crucial and should be part of the ambient docs.