Kubernetes auditing policy doesn't work, kubelet won't start up with the policy

im just trying to add audit logging in one of my k8s clusters, my yamls manifest are bellow: kube-api-server file from /manifests/kube-apiserver.yaml

apiVersion: v1
kind: Pod
metadata:
  annotations:
    kubeadm.kubernetes.io/kube-apiserver.advertise-address.endpoint: 10.x.x.x:6443
  creationTimestamp: null
  labels:
    component: kube-apiserver
    tier: control-plane
  name: kube-apiserver
  namespace: kube-system
spec:
  containers:
  - command:
    - kube-apiserver
    - --advertise-address=10.x.x.x
    - --allow-privileged=true
    - --authorization-mode=Node,RBAC
    - --client-ca-file=/etc/kubernetes/pki/ca.crt
    - --enable-admission-plugins=NodeRestriction
    - --enable-bootstrap-token-auth=true
    - --etcd-cafile=/etc/kubernetes/pki/etcd/ca.crt
    - --etcd-certfile=/etc/kubernetes/pki/apiserver-etcd-client.crt
    - --etcd-keyfile=/etc/kubernetes/pki/apiserver-etcd-client.key
    - --etcd-servers=https://127.0.0.1:2379
    - --kubelet-client-certificate=/etc/kubernetes/pki/apiserver-kubelet-client.crt
    - --kubelet-client-key=/etc/kubernetes/pki/apiserver-kubelet-client.key
    - --kubelet-preferred-address-types=InternalIP,ExternalIP,Hostname
    - --proxy-client-cert-file=/etc/kubernetes/pki/front-proxy-client.crt
    - --proxy-client-key-file=/etc/kubernetes/pki/front-proxy-client.key
    - --requestheader-allowed-names=front-proxy-client
    - --requestheader-client-ca-file=/etc/kubernetes/pki/front-proxy-ca.crt
    - --requestheader-extra-headers-prefix=X-Remote-Extra-
    - --requestheader-group-headers=X-Remote-Group
    - --requestheader-username-headers=X-Remote-User
    - --secure-port=6443
    - --service-account-issuer=https://kubernetes.default.svc.cluster.local
    - --service-account-key-file=/etc/kubernetes/pki/sa.pub
    - --service-account-signing-key-file=/etc/kubernetes/pki/sa.key
    - --service-cluster-ip-range=10.96.0.0/12
    - --tls-cert-file=/etc/kubernetes/pki/apiserver.crt
    - --tls-private-key-file=/etc/kubernetes/pki/apiserver.key
    - --audit-policy-file=/etc/kubernetes/policies/audit-policy.yaml
    - --audit-log-path=/var/log/kubernetes/audit/audit.log
    - --audit-log-maxage=30
    - --audit-log-maxsize=200
    image: registry.k8s.io/kube-apiserver:v1.24.9
    imagePullPolicy: IfNotPresent
    livenessProbe:
      failureThreshold: 8
      httpGet:
        host: 10.x.x.x
        path: /livez
        port: 6443
        scheme: HTTPS
      initialDelaySeconds: 10
      periodSeconds: 10
      timeoutSeconds: 15
    name: kube-apiserver
    readinessProbe:
      failureThreshold: 3
      httpGet:
        host: 10.x.x.x
        path: /readyz
        port: 6443
        scheme: HTTPS
      periodSeconds: 1
      timeoutSeconds: 15
    resources:
      requests:
        cpu: 250m
    startupProbe:
      failureThreshold: 24
      httpGet:
        host: 10.x.x.x
        path: /livez
        port: 6443
        scheme: HTTPS
      initialDelaySeconds: 10
      periodSeconds: 10
      timeoutSeconds: 15
    volumeMounts:
    - mountPath: /etc/ssl/certs
      name: ca-certs
      readOnly: true
    - mountPath: /etc/ca-certificates
      name: etc-ca-certificates
      readOnly: true
    - mountPath: /etc/pki
      name: etc-pki
      readOnly: true
    - mountPath: /etc/kubernetes/pki
      name: k8s-certs
      readOnly: true
    - mountPath: /usr/local/share/ca-certificates
      name: usr-local-share-ca-certificates
      readOnly: true
    - mountPath: /usr/share/ca-certificates
      name: usr-share-ca-certificates
      readOnly: true
    - mountPath: /etc/kubernetes/policies/audit-policy.yaml
      name: audit
      readOnly: true
    - mountPath: /var/log/kubernetes/audit/
      name: audit-log
      readOnly: false
  hostNetwork: true
  priorityClassName: system-node-critical
  securityContext:
    seccompProfile:
      type: RuntimeDefault
  volumes:
  - hostPath:
      path: /etc/ssl/certs
      type: DirectoryOrCreate
    name: ca-certs
  - hostPath:
      path: /etc/ca-certificates
      type: DirectoryOrCreate
    name: etc-ca-certificates
  - hostPath:
      path: /etc/pki
      type: DirectoryOrCreate
    name: etc-pki
  - hostPath:
      path: /etc/kubernetes/pki
      type: DirectoryOrCreate
    name: k8s-certs
  - hostPath:
      path: /usr/local/share/ca-certificates
      type: DirectoryOrCreate
    name: usr-local-share-ca-certificates
  - hostPath:
      path: /usr/share/ca-certificates
      type: DirectoryOrCreate
    name: usr-share-ca-certificates
  - name: audit
    hostPath:
    path: /etc/kubernetes/policies/audit-policy.yaml
     type: File
  - name: audit-log
    hostPath:
      path: /var/log/kubernetes/audit/
      type: DirectoryOrCreate
status: {}

Policies is default one from reference k8s doc auditing:

When the api-server is reloaded or kubelet is restarted, doesnt show any logs in /var/log/kubernetes/audit/ or in the kube-api-server logs, looks like the policy is not somehow applied into the kube api server pod. Even the volumes are not created. The command section does not show any sign of policy to be applied.

Command kube-apiserver --advertise-address=10.2.xx.xx --allow-privileged=true --authorization-mode=Node,RBAC --client-ca-file=/etc/kubernetes/pki/ca.crt --enable-admission-plugins=NodeRestriction --enable-bootstrap-token-auth=true --etcd-cafile=/etc/kubernetes/pki/etcd/ca.crt --etcd-certfile=/etc/kubernetes/pki/apiserver-etcd-client.crt --etcd-keyfile=/etc/kubernetes/pki/apiserver-etcd-client.key --etcd-servers=https://127.0.0.1:2379 --kubelet-client-certificate=/etc/kubernetes/pki/apiserver-kubelet-client.crt --kubelet-client-key=/etc/kubernetes/pki/apiserver-kubelet-client.key --kubelet-preferred-address-types=InternalIP,ExternalIP,Hostname --proxy-client-cert-file=/etc/kubernetes/pki/front-proxy-client.crt --proxy-client-key-file=/etc/kubernetes/pki/front-proxy-client.key --requestheader-allowed-names=front-proxy-client --requestheader-client-ca-file=/etc/kubernetes/pki/front-proxy-ca.crt --requestheader-extra-headers-prefix=X-Remote-Extra- --requestheader-group-headers=X-Remote-Group --requestheader-username-headers=X-Remote-User --secure-port=6443 --service-account-issuer=https://kubernetes.default.svc.cluster.local --service-account-key-file=/etc/kubernetes/pki/sa.pub --service-account-signing-key-file=/etc/kubernetes/pki/sa.key --service-cluster-ip-range=10.96.0.0/12 --tls-cert-file=/etc/kubernetes/pki/apiserver.crt --tls-private-key-file=/etc/kubernetes/pki/apiserver.key

Any help is appreciated.