POD to POD communication is not happening with Istio proxy enabled in AKS

We are using grafana/pyroscope version v1.2.0. We are running Pyroscope in microservice mode in AKS cluster. We are having istio proxy enabled in our AKS cluster. When istio is enabled, Pod to Pod communication is not happening between the components using their Pod IP address. We are getting 502 bad gateway error when istio proxy is enabled

Steps to reproduce the behavior:

Start Pyroscope Pod in AKS
Push profiles from sample application to Pyroscope's distributor endpoint
Query in grafana using Pyroscope's query-frontend endpoint

Expected behavior
Pyroscope components - distributor, ingester, store gateway, querier, query scheduler, compactor and query frontend should communicate to each other using their Pod IP address.

Environment
Infrastructure: Kubernetes (AKS)
Deployment tool: Helm