I have a working cluster with services and PODS/replicas running. If I an not wrong, if a service is created with Type=NodePort/LoadBalancer, Kube-proxy creates a new NodePort in all the nodes and creates a iptable rule. If I add a new Node to the cluster, does Kube-proxy creates a NodePort in the newly added Node also?
Yes it does. That's what kubeproxy is meant to do.