Found the solution thanks to Bernardo Pinheiro,
It is possible to enabled image-automation-controller in Azure Flux, as described here:
To do that in Bicep one need to do the following:
resource fluxExtensions 'Microsoft.KubernetesConfiguration/extensions@2022-03-01' = {
name: 'flux'
scope: aks
properties: {
extensionType: 'microsoft.flux'
scope: {
cluster: {
releaseNamespace: 'flux-system'
}
}
configurationSettings: {
'image-automation-controller.enabled': 'true'
'image-reflector-controller.enabled': 'true'
}
autoUpgradeMinorVersion: true
version: '1.3.0'
}
}
This configuration of Flux must be done on Microsoft.KubernetesConfiguration/extensions level instead of Microsoft.KubernetesConfiguration/fluxConfigurations