[Bug]: app v2: empty valset after init genesis

[alpe]

Is there an existing issue for this?

• I have searched the existing issues

What happened?

After the memtree iterator fix was fixed, a new issue popped up in app v2 sims.
Although there are validators setup in genesis json, the init chain call does not return any.

After some debugging, I found out that ApplyAndReturnValidatorSetUpdates is called twice. On init-genesis and on end-block. In the second call, the validator power has not changed so an empty list is returned. Not sure why it was working before.

Cosmos SDK Version

main

How to reproduce?

No response

[julienrbrt]

Looks like the validator updates from InitGenesis are ignored and we call DeliverBlock which does the Begin/Blocker flow, where those are returned