When you create a cluster with --authorization=RBAC --networking=flannel flannel will not function until you apply
https://github.com/coreos/flannel/blob/master/Documentation/kube-flannel-rbac.yml
Blog post with the missing stuff: http://arveknudsen.com/?p=386
Closing as fixed in master
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Blog post with the missing stuff: http://arveknudsen.com/?p=386