[release-1.22] Wasm Configuration for Ambient Mode - Updates

[istio-testing]

Manual cherrypick required.

#15136 failed to apply on top of branch "release-1.22":

Applying: updated docs and test
.git/rebase-apply/patch:19: trailing whitespace.
      group: ""                       
.git/rebase-apply/patch:36: trailing whitespace.
      group: ""                       
warning: 2 lines add whitespace errors.
Using index info to reconstruct a base tree...
M	go.mod
Falling back to patching base and 3-way merge...
Auto-merging go.mod
CONFLICT (content): Merge conflict in go.mod
error: Failed to merge in the changes.
hint: Use 'git am --show-current-patch=diff' to see the failed patch
Patch failed at 0001 updated docs and test
When you have resolved this problem, run "git am --continue".
If you prefer to skip this patch, run "git am --skip" instead.
To restore the original branch and stop patching, run "git am --abort".

[kfaseela]

@adilmp1 please cherrypick this manually