Update cluster-api to v1.7.4

[Amulyam24]

What this PR does / why we need it:
Update cluster-api to v1.7.4

Which issue(s) this PR fixes (optional, in fixes #<issue number>(, fixes #<issue_number>, ...) format, will close the issue(s) when PR gets merged):
Fixes #

Special notes for your reviewer:

/area provider/ibmcloud

1. Please confirm that if this PR changes any image versions, then that's the sole change this PR makes.

Release note:

Update cluster-api to v1.7.4

[netlify]

✅ Deploy Preview for kubernetes-sigs-cluster-api-ibmcloud ready!

Name	Link
🔨 Latest commit	8454187
🔍 Latest deploy log	https://app.netlify.com/sites/kubernetes-sigs-cluster-api-ibmcloud/deploys/668e2c9929db050008aa810b
😎 Deploy Preview	https://deploy-preview-1878--kubernetes-sigs-cluster-api-ibmcloud.netlify.app
📱 Preview on mobile	Toggle QR Code... Use your smartphone camera to open QR code link.

---

To edit notification comments on pull requests, go to your Netlify site configuration.

[Amulyam24]

This PR needs to be cherry-picked to release-0.7

[mkumatag]

/lgtm

[k8s-ci-robot]

[APPROVALNOTIFIER] This PR is APPROVED

This pull-request has been approved by: Amulyam24, mkumatag

The full list of commands accepted by this bot can be found here.

The pull request process is described here

Needs approval from an approver in each of these files:

• OWNERS [mkumatag]

Approvers can indicate their approval by writing /approve in a comment
Approvers can cancel approval by writing /approve cancel in a comment

[Prajyot-Parab]

/cherry-pick release-0.8

[k8s-infra-cherrypick-robot]

@Prajyot-Parab: #1878 failed to apply on top of branch "release-0.8":

Applying: Update cluster-api to v1.7.4
Using index info to reconstruct a base tree...
M	go.mod
M	go.sum
M	hack/tools/go.mod
M	hack/tools/go.sum
M	test/e2e/config/ibmcloud-e2e-powervs.yaml
M	test/e2e/config/ibmcloud-e2e-vpc.yaml
Falling back to patching base and 3-way merge...
Auto-merging test/e2e/config/ibmcloud-e2e-vpc.yaml
CONFLICT (content): Merge conflict in test/e2e/config/ibmcloud-e2e-vpc.yaml
Auto-merging test/e2e/config/ibmcloud-e2e-powervs.yaml
CONFLICT (content): Merge conflict in test/e2e/config/ibmcloud-e2e-powervs.yaml
Auto-merging hack/tools/go.sum
CONFLICT (content): Merge conflict in hack/tools/go.sum
Auto-merging hack/tools/go.mod
CONFLICT (content): Merge conflict in hack/tools/go.mod
Auto-merging go.sum
CONFLICT (content): Merge conflict in go.sum
Auto-merging go.mod
CONFLICT (content): Merge conflict in go.mod
error: Failed to merge in the changes.
hint: Use 'git am --show-current-patch=diff' to see the failed patch
Patch failed at 0001 Update cluster-api to v1.7.4
When you have resolved this problem, run "git am --continue".
If you prefer to skip this patch, run "git am --skip" instead.
To restore the original branch and stop patching, run "git am --abort".

In response to this:

/cherry-pick release-0.8

Instructions for interacting with me using PR comments are available here. If you have questions or suggestions related to my behavior, please file an issue against the kubernetes-sigs/prow repository.