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The generated HelmRelease is health-assessed by helm-controller's kstatus poller, which returns InProgress for any object whose status.observedGeneration trails metadata.generation: a built-in pre-check in fluxcd/pkg/runtime/cel that runs before, and cannot be overridden by, healthCheckExprs. KubeVirt legitimately keeps a VirtualMachine's observedGeneration behind its generation while a template change is pending a restart, the VM is stopped, or a live-updatable change never converges (kubevirt/kubevirt#18700), so a healthy Running VM is read as permanently InProgress and the release never reaches Ready. Releases still carrying the pre-1.5.0 remediation.retries:-1 + rollback spec then revert the previous manifest, dropping just-applied changes such as opened ports. Disable the readiness wait so the release settles once the VirtualMachine is applied; VM health is observed on the VirtualMachine itself. This restores the pre-1.5.0 behaviour under which the VM was never a helm readiness gate. A helm-unittest suite guards that the annotation stays in place. Signed-off-by: IvanHunters <xorokhotnikov@gmail.com>