Wasm plugin throws 503

I have Istio mTLS STRICT mode enabled, after switching from PERMISSIVE mode, it seems wasm plugin (in istio ingress gateway) is not able to communicate with the target service anymore:

2023-10-13T20:49:08.653912Z     error   envoy wasm external/envoy/source/extensions/common/wasm/context.cc:1154 wasm log istio-system.<wasm-plugin>: Context ID: 4. Unknown issue occurred. Response status code: 503, body: "upstream connect error or disconnect/reset before headers. reset reason: connection termination"  thread=50

logs from target service Istio-proxy container:

2023-10-13T20:57:31.907732Z     debug   envoy main external/envoy/source/server/server.cc:263   flushing stats  thread=21
[2023-10-13T20:57:31.650Z] "- - -" 0 NR filter_chain_not_found - "-" 0 0 0 - "-" "-" "-" "-" "-" - - 10.42.0.147:5555 10.42.0.154:36420 - -

10.42.0.147:5555 this is the target service
10.42.0.154 this is the istio ingress gateway address

and this is the envoy filter:

apiVersion: networking.istio.io/v1alpha3
kind: EnvoyFilter
metadata:
  name: ingressgateway-upstream-account-service
  namespace: "istio-system"
spec:
  workloadSelector:
    labels:
      istio: ingressgateway
  configPatches:
    - applyTo: CLUSTER
      match:
        context: GATEWAY
      patch:
        operation: ADD
        value: # Cluster specification
          name: target_service
          type: LOGICAL_DNS
          connect_timeout: 5s
          lb_policy: ROUND_ROBIN
          load_assignment:
            cluster_name: target_service
            endpoints:
              - lb_endpoints:
                  - endpoint:
                      address:
                        socket_address:
                          address: "target-service.default.svc.cluster.local"
                          protocol: TCP
                          port_value: 5555

what I am doing wrong here?

resolved in 503 error when connecting with service from wasm plugin · Issue #47372 · istio/istio · GitHub