[release-1.20] Bump CAPI to v1.10.4

[mboersma]

What type of PR is this?

/kind cleanup

Manual cherry-pick of #5761

What this PR does / why we need it:

Updates the Cluster API dependency to v1.10.4.

Which issue(s) this PR fixes:

N/A, but see #5712 for prior art.

Special notes for your reviewer:

TODOs:

• squashed commits
• includes documentation
• adds unit tests
• cherry-pick candidate

Release note:

Bump CAPI to v1.10.4

[codecov]

Codecov Report

All modified and coverable lines are covered by tests ✅

Project coverage is 52.82%. Comparing base (62de68f) to head (18059f7).
Report is 5 commits behind head on release-1.20.

Additional details and impacted files

@@              Coverage Diff              @@
##           release-1.20    #5771   +/-   ##
=============================================
  Coverage         52.82%   52.82%           
=============================================
  Files               279      279           
  Lines             29629    29629           
=============================================
  Hits              15652    15652           
  Misses            13160    13160           
  Partials            817      817           

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[jackfrancis]

/lgtm
/approve

[k8s-ci-robot]

LGTM label has been added.

Git tree hash: 7c8b36cfd589d69fc981fe685e19cbac73cb739b

[k8s-ci-robot]

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