Closing the loop here. I have successfully set up CAPI and it works great. Build k8s cluster 1 Master and 1 Worker node in less than 3 minutes. 

I will blog out my stuff for people looking for help like me :) 

On Sun, Dec 17, 2023 at 4:53 PM <kmceliker@gmail.com> wrote:

Here is an example of a CAPI deployment code for OpenStack, mate - using the clusterctl tool and the cluster-template.yaml file. This code will create a cluster named capi-openstack with one control plane node and three worker nodes, using the ubuntu-2204 image and the m1.medium flavor. You need to replace the placeholders with your own values

# Install clusterctl
curl -L https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.0.1/clusterctl-linux-amd64 -o clusterctl
chmod +x ./clusterctl
sudo mv ./clusterctl /usr/local/bin/clusterctl

# Set environment variables
export OPENSTACK_CLOUD=<openstack-cloud>
export OPENSTACK_USERNAME=<openstack-username>
export OPENSTACK_PASSWORD=<openstack-password>
export OPENSTACK_DOMAIN_NAME=<openstack-domain-name>
export OPENSTACK_PROJECT_ID=<openstack-project-id>
export OPENSTACK_SSH_KEY_NAME=<openstack-ssh-key-name>
export OPENSTACK_DNS_NAMESERVERS=<openstack-dns-nameservers>
export OPENSTACK_EXTERNAL_NETWORK_ID=<openstack-external-network-id>
export OPENSTACK_CONTROL_PLANE_MACHINE_FLAVOR=m1.medium
export OPENSTACK_NODE_MACHINE_FLAVOR=m1.medium
export OPENSTACK_IMAGE_NAME=ubuntu-2204
export KUBERNETES_VERSION=v1.23.15

# Initialize clusterctl
clusterctl init --infrastructure openstack

# Create cluster
clusterctl config cluster capi-openstack --kubernetes-version $KUBERNETES_VERSION --control-plane-machine-count=1 --worker-machine-count=3 > cluster-template.yaml
clusterctl create cluster --kubeconfig ~/.kube/config --infrastructure openstack:v0.6.0 --bootstrap kubeadm:v0.4.4 --control-plane kubeadm:v0.4.4 --cluster capi-openstack --namespace default --from cluster-template.yaml

Also you can turn on Enable to Magnum Report Log on OpenStack to provide with us or Take a look deep dively as the following link;
https://github.com/kubernetes-sigs/cluster-api-provider-openstack

Best,
Kerem Çeliker
Head of Cloud Architecture
tr.linkedin.com/in/keremceliker