diff --git a/control-plane-operator/controllers/hostedcontrolplane/v2/assets/cluster-api/deployment.yaml b/control-plane-operator/controllers/hostedcontrolplane/v2/assets/cluster-api/deployment.yaml
index 0eb5208281e..cb0a239490e 100644
--- a/control-plane-operator/controllers/hostedcontrolplane/v2/assets/cluster-api/deployment.yaml
+++ b/control-plane-operator/controllers/hostedcontrolplane/v2/assets/cluster-api/deployment.yaml
@@ -28,6 +28,7 @@ spec:
         - --leader-elect-lease-duration=137s
         - --leader-elect-retry-period=26s
         - --leader-elect-renew-deadline=107s
+        - --skip-crd-migration-phases=StorageVersionMigration,CleanupManagedFields
         env:
         - name: MY_NAMESPACE
           valueFrom:
diff --git a/hypershift-operator/controllers/hostedcluster/testdata/cluster-api/zz_fixture_TestReconcileComponents.yaml b/hypershift-operator/controllers/hostedcluster/testdata/cluster-api/zz_fixture_TestReconcileComponents.yaml
index 41854ee0f0a..e5100b4365a 100644
--- a/hypershift-operator/controllers/hostedcluster/testdata/cluster-api/zz_fixture_TestReconcileComponents.yaml
+++ b/hypershift-operator/controllers/hostedcluster/testdata/cluster-api/zz_fixture_TestReconcileComponents.yaml
@@ -68,6 +68,7 @@ spec:
         - --leader-elect-lease-duration=137s
         - --leader-elect-retry-period=26s
         - --leader-elect-renew-deadline=107s
+        - --skip-crd-migration-phases=StorageVersionMigration,CleanupManagedFields
         env:
         - name: MY_NAMESPACE
           valueFrom: