[release-1.17] Bump CAPI to v1.8.10 in dev and test code

[mboersma]

What type of PR is this?

/kind cleanup

What this PR does / why we need it:

Makes some changes that I forgot to include in the previous v1.8.10 PR. 🤦🏻

Which issue(s) this PR fixes:

Refs #5437

Special notes for your reviewer:

TODOs:

• squashed commits
• includes documentation
• adds unit tests
• cherry-pick candidate

Release note:

NONE

[k8s-ci-robot]

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[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Project coverage is 52.40%. Comparing base (22a32cd) to head (511e13c).
Report is 1 commits behind head on release-1.17.

Additional details and impacted files

@@              Coverage Diff              @@
##           release-1.17    #5442   +/-   ##
=============================================
  Coverage         52.40%   52.40%           
=============================================
  Files               273      273           
  Lines             29185    29185           
=============================================
  Hits              15294    15294           
  Misses            13090    13090           
  Partials            801      801           

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[mboersma]

/retest

[k8s-ci-robot]

@mboersma: The following test failed, say /retest to rerun all failed tests or /retest-required to rerun all mandatory failed tests:

Test name	Commit	Details	Required	Rerun command
pull-cluster-api-provider-azure-e2e-v1beta1	511e13c	link	true	/test pull-cluster-api-provider-azure-e2e-v1beta1

Full PR test history. Your PR dashboard. Please help us cut down on flakes by linking to an open issue when you hit one in your PR.

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