Helm chart suddenly no longer creates resources in flux-system namespace

[autarchprinceps]

Describe the bug a clear and concise description of what the bug is.

Despite the helm chart using the flux-system namespace still, a helm upgrade to 2.16 suddenly creates the resources themselves in the default namespace instead, and obviously breaks therein.

What's your helm version?

v3.18.3

What's your kubectl version?

v1.33.1

What's the chart version?

2.16.0

What happened?

No response

What you expected to happen?

For resources to be updated in place in flux-system

How to reproduce it?

No response

Enter the changed values of values.yaml?

No response

Enter the command that you execute and failing/misfunctioning.

helm upgrade

Anything else we need to know?

No response

[bondido]

I have this issue after bumping terraform helm provider to version 3.x. Flux pods are started in 'default' namespace.
Seems like bug there in the provider: hashicorp/terraform-provider-helm#1646
(with helm provider version < 3.0 flux installs OK into the right namespace)