"KubeletManagedEtcHosts should test kubelet managed /etc/hosts file"
conformance test fails in the CI's Docker-In-Docker environment.

This test mounts a /etc/hosts file and checks if "# Kubernetes-managed
hosts file." string is present or not under various conditions. The
specific failure with DIND happens when the /etc/hosts picked up
from the box where e2e test are running already has this string. This
happens because our CI runs on kubernetes and the e2e tests are running
in a container that was started on kubernetes (and hence already has
that string)

To avoid this situation, we create a new /etc/hosts file with known
contents (and does not have the "# Kubernetes-managed hosts file."
string)