take 2: set appProtocol on services

[KauzClay]

Part of ##14569

Proposed Changes

• brought in earlier, but revert due to failing tests (Revert "Set AppProtocol on Services (#14757)" #14805)
• Trying again with updated istio version (see bump istio for gateway api tests #14808)
• need to run gateway api tests on this PR

Release Note

tbd

[KauzClay]

/test gateway-api-latest

[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Comparison is base (45ddf2d) 85.92% compared to head (aa0d342) 85.91%.

Additional details and impacted files

@@            Coverage Diff             @@
##             main   #14809      +/-   ##
==========================================
- Coverage   85.92%   85.91%   -0.01%     
==========================================
  Files         197      197              
  Lines       14986    14991       +5     
==========================================
+ Hits        12877    12880       +3     
- Misses       1796     1798       +2     
  Partials      313      313              

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[dprotaso]

/lgtm
/approve

[knative-prow]

[APPROVALNOTIFIER] This PR is APPROVED

This pull-request has been approved by: dprotaso, KauzClay

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