Related to #1 and #2, when installing operators at non-channel heads, it is not possible to determine the set of supported install modes in advance. This makes it possible for the operator install command to install a Failed CSV when the channel head CSV and the installed CSV have a different set of supported install modes.
For example, the prometheus operator beta channel has:
0.37.0 (HEAD), supporting AllNamespaces
0.32.0, not supporting AllNamepspaces
When installing 0.32.0 using the default options, the CSV fails because the set of supported install modes is determined from the channel head. The order of precedence used by the installation selects AllNamespaces first (if supported), which is NOT supported by 0.32.0.