Local images are failing for tasks in Openshift pipelines 1.11

Question

I have following task definition (simplified):

apiVersion: tekton.dev/v1beta1
kind: Task
metadata:
  name: my-task
  namespace: mynamespace
  params:
    - default: 'image-registry.openshift-image-registry.svc:5000/mynamespace/mytaskimage'
      description: image used to execute this task
      name: task-image
      type: string
  steps:
    - command:
        - ./runscript.sh
      image: $(params.task-image)
      name: run-script
      resources: {}

This task was working fine in Openshift pipelines 1.10.6 but is failing in 1.11.1

It is failing with error:

Generated from TaskRun
build step "step-run-script" is pending with reason "rpc error: code = Unknown desc = reading manifest latest in image-registry.openshift-image-registry.svc:5000/mynamespace/mytaskimage: manifest unknown"

Any hints how to use local images in task in 1.11+ pipelines? The task image is in the same namespace.