diff --git a/Makefile b/Makefile
index 273afde2152..09342e40040 100644
--- a/Makefile
+++ b/Makefile
@@ -312,7 +312,7 @@ create-management-cluster: $(KUSTOMIZE) $(ENVSUBST) $(KUBECTL) $(KIND) ## Create
 	./hack/create-custom-cloud-provider-config.sh
 
 	# Deploy CAPI
-	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/cluster-api-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
+	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/cluster-api-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
 
 	# Deploy CAAPH
 	timeout --foreground 300 bash -c "until curl --retry $(CURL_RETRIES) -sSL https://github.com/kubernetes-sigs/cluster-api-addon-provider-helm/releases/download/v0.2.5/addon-components.yaml | $(ENVSUBST) | $(KUBECTL) apply -f -; do sleep 5; done"
diff --git a/Tiltfile b/Tiltfile
index ee74c583cb9..e5d1506bd8d 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -20,7 +20,7 @@ settings = {
     "deploy_cert_manager": True,
     "preload_images_for_kind": True,
     "kind_cluster_name": "capz",
-    "capi_version": "v1.7.5",
+    "capi_version": "v1.8.1",
     "caaph_version": "v0.2.5",
     "cert_manager_version": "v1.15.2",
     "kubernetes_version": "v1.28.3",
diff --git a/api/v1beta1/azuremanagedcluster_webhook_test.go b/api/v1beta1/azuremanagedcluster_webhook_test.go
index 961eaf55006..913fda67833 100644
--- a/api/v1beta1/azuremanagedcluster_webhook_test.go
+++ b/api/v1beta1/azuremanagedcluster_webhook_test.go
@@ -22,6 +22,7 @@ import (
 	. "github.com/onsi/gomega"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	utilfeature "k8s.io/component-base/featuregate/testing"
+	"k8s.io/utils/ptr"
 	"sigs.k8s.io/cluster-api-provider-azure/feature"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
 	capifeature "sigs.k8s.io/cluster-api/feature"
@@ -135,27 +136,29 @@ func TestAzureManagedCluster_ValidateCreate(t *testing.T) {
 
 func TestAzureManagedCluster_ValidateCreateFailure(t *testing.T) {
 	tests := []struct {
-		name        string
-		amc         *AzureManagedCluster
-		deferFunc   func()
-		expectError bool
+		name               string
+		amc                *AzureManagedCluster
+		featureGateEnabled *bool
+		expectError        bool
 	}{
 		{
-			name:        "feature gate explicitly disabled",
-			amc:         getKnownValidAzureManagedCluster(),
-			deferFunc:   utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, false),
-			expectError: true,
+			name:               "feature gate explicitly disabled",
+			amc:                getKnownValidAzureManagedCluster(),
+			featureGateEnabled: ptr.To(false),
+			expectError:        true,
 		},
 		{
-			name:        "feature gate implicitly enabled",
-			amc:         getKnownValidAzureManagedCluster(),
-			deferFunc:   func() {},
-			expectError: false,
+			name:               "feature gate implicitly enabled",
+			amc:                getKnownValidAzureManagedCluster(),
+			featureGateEnabled: nil,
+			expectError:        false,
 		},
 	}
 	for _, tc := range tests {
 		t.Run(tc.name, func(t *testing.T) {
-			defer tc.deferFunc()
+			if tc.featureGateEnabled != nil {
+				defer utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, *tc.featureGateEnabled)()
+			}
 			g := NewWithT(t)
 			_, err := tc.amc.ValidateCreate()
 			if tc.expectError {
diff --git a/api/v1beta1/azuremanagedcontrolplane_webhook_test.go b/api/v1beta1/azuremanagedcontrolplane_webhook_test.go
index bfa47bb3b7c..ad6504612ec 100644
--- a/api/v1beta1/azuremanagedcontrolplane_webhook_test.go
+++ b/api/v1beta1/azuremanagedcontrolplane_webhook_test.go
@@ -1662,29 +1662,31 @@ func TestAzureManagedControlPlane_ValidateCreate(t *testing.T) {
 
 func TestAzureManagedControlPlane_ValidateCreateFailure(t *testing.T) {
 	tests := []struct {
-		name        string
-		amcp        *AzureManagedControlPlane
-		deferFunc   func()
-		expectError bool
+		name               string
+		amcp               *AzureManagedControlPlane
+		featureGateEnabled *bool
+		expectError        bool
 	}{
 		{
-			name:        "feature gate explicitly disabled",
-			amcp:        getKnownValidAzureManagedControlPlane(),
-			deferFunc:   utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, false),
-			expectError: true,
+			name:               "feature gate explicitly disabled",
+			amcp:               getKnownValidAzureManagedControlPlane(),
+			featureGateEnabled: ptr.To(false),
+			expectError:        true,
 		},
 		{
-			name:        "feature gate implicitly enabled",
-			amcp:        getKnownValidAzureManagedControlPlane(),
-			deferFunc:   func() {},
-			expectError: false,
+			name:               "feature gate implicitly enabled",
+			amcp:               getKnownValidAzureManagedControlPlane(),
+			featureGateEnabled: nil,
+			expectError:        false,
 		},
 	}
 	client := mockClient{ReturnError: false}
 	for _, tc := range tests {
 		t.Run(tc.name, func(t *testing.T) {
 			g := NewWithT(t)
-			defer tc.deferFunc()
+			if tc.featureGateEnabled != nil {
+				defer utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, *tc.featureGateEnabled)()
+			}
 			mcpw := &azureManagedControlPlaneWebhook{
 				Client: client,
 			}
diff --git a/api/v1beta1/azuremanagedmachinepool_webhook_test.go b/api/v1beta1/azuremanagedmachinepool_webhook_test.go
index 8f233f7f25d..442de80d4a5 100644
--- a/api/v1beta1/azuremanagedmachinepool_webhook_test.go
+++ b/api/v1beta1/azuremanagedmachinepool_webhook_test.go
@@ -1307,27 +1307,29 @@ func TestAzureManagedMachinePool_ValidateCreate(t *testing.T) {
 
 func TestAzureManagedMachinePool_ValidateCreateFailure(t *testing.T) {
 	tests := []struct {
-		name        string
-		ammp        *AzureManagedMachinePool
-		deferFunc   func()
-		expectError bool
+		name               string
+		ammp               *AzureManagedMachinePool
+		featureGateEnabled *bool
+		expectError        bool
 	}{
 		{
-			name:        "feature gate explicitly disabled",
-			ammp:        getKnownValidAzureManagedMachinePool(),
-			deferFunc:   utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, false),
-			expectError: true,
+			name:               "feature gate explicitly disabled",
+			ammp:               getKnownValidAzureManagedMachinePool(),
+			featureGateEnabled: ptr.To(false),
+			expectError:        true,
 		},
 		{
-			name:        "feature gate implicitly enabled",
-			ammp:        getKnownValidAzureManagedMachinePool(),
-			deferFunc:   func() {},
-			expectError: false,
+			name:               "feature gate implicitly enabled",
+			ammp:               getKnownValidAzureManagedMachinePool(),
+			featureGateEnabled: nil,
+			expectError:        false,
 		},
 	}
 	for _, tc := range tests {
 		t.Run(tc.name, func(t *testing.T) {
-			defer tc.deferFunc()
+			if tc.featureGateEnabled != nil {
+				defer utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, *tc.featureGateEnabled)()
+			}
 			g := NewWithT(t)
 			mw := &azureManagedMachinePoolWebhook{}
 			_, err := mw.ValidateCreate(context.Background(), tc.ammp)
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_azureclusteridentities.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_azureclusteridentities.yaml
index e380fdb41f0..8df22367dd7 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_azureclusteridentities.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_azureclusteridentities.yaml
@@ -105,11 +105,13 @@ spec:
                               items:
                                 type: string
                               type: array
+                              x-kubernetes-list-type: atomic
                           required:
                           - key
                           - operator
                           type: object
                         type: array
+                        x-kubernetes-list-type: atomic
                       matchLabels:
                         additionalProperties:
                           type: string
diff --git a/controllers/azureasomanagedmachinepool_controller.go b/controllers/azureasomanagedmachinepool_controller.go
index d2e0def14ac..c57f8df9738 100644
--- a/controllers/azureasomanagedmachinepool_controller.go
+++ b/controllers/azureasomanagedmachinepool_controller.go
@@ -91,8 +91,8 @@ func (r *AzureASOManagedMachinePoolReconciler) SetupWithManager(ctx context.Cont
 		).
 		Watches(
 			&expv1.MachinePool{},
-			handler.EnqueueRequestsFromMapFunc(utilexp.MachinePoolToInfrastructureMapFunc(
-				infrav1alpha.GroupVersion.WithKind(infrav1alpha.AzureASOManagedMachinePoolKind), log),
+			handler.EnqueueRequestsFromMapFunc(utilexp.MachinePoolToInfrastructureMapFunc(ctx,
+				infrav1alpha.GroupVersion.WithKind(infrav1alpha.AzureASOManagedMachinePoolKind)),
 			),
 			builder.WithPredicates(
 				predicates.ResourceHasFilterLabel(log, r.WatchFilterValue),
diff --git a/controllers/azurejson_machinetemplate_controller.go b/controllers/azurejson_machinetemplate_controller.go
index baea0ee8e18..25ad9f0e836 100644
--- a/controllers/azurejson_machinetemplate_controller.go
+++ b/controllers/azurejson_machinetemplate_controller.go
@@ -38,11 +38,11 @@ import (
 	"sigs.k8s.io/cluster-api/util/annotations"
 	"sigs.k8s.io/cluster-api/util/predicates"
 	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/builder"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/controller"
 	"sigs.k8s.io/controller-runtime/pkg/handler"
 	"sigs.k8s.io/controller-runtime/pkg/reconcile"
-	"sigs.k8s.io/controller-runtime/pkg/source"
 )
 
 // AzureJSONTemplateReconciler reconciles Azure json secrets for AzureMachineTemplate objects.
@@ -65,29 +65,22 @@ func (r *AzureJSONTemplateReconciler) SetupWithManager(ctx context.Context, mgr
 		return errors.Wrap(err, "failed to create mapper for Cluster to AzureMachineTemplates")
 	}
 
-	c, err := ctrl.NewControllerManagedBy(mgr).
+	return ctrl.NewControllerManagedBy(mgr).
 		WithOptions(options).
 		For(&infrav1.AzureMachineTemplate{}).
 		WithEventFilter(predicates.ResourceNotPausedAndHasFilterLabel(log, r.WatchFilterValue)).
 		Owns(&corev1.Secret{}).
-		Build(r)
-
-	if err != nil {
-		return errors.Wrap(err, "failed to create controller")
-	}
-
-	// Add a watch on Clusters to requeue when the infraRef is set. This is needed because the infraRef is not initially
-	// set in Clusters created from a ClusterClass.
-	if err := c.Watch(
-		source.Kind(mgr.GetCache(), &clusterv1.Cluster{}),
-		handler.EnqueueRequestsFromMapFunc(azureMachineTemplateMapper),
-		predicates.ClusterUnpausedAndInfrastructureReady(log),
-		predicates.ResourceNotPausedAndHasFilterLabel(log, r.WatchFilterValue),
-	); err != nil {
-		return errors.Wrap(err, "failed adding a watch for Clusters")
-	}
-
-	return nil
+		// Add a watch on Clusters to requeue when the infraRef is set. This is needed because the infraRef is not initially
+		// set in Clusters created from a ClusterClass.
+		Watches(
+			&clusterv1.Cluster{},
+			handler.EnqueueRequestsFromMapFunc(azureMachineTemplateMapper),
+			builder.WithPredicates(
+				predicates.ClusterUnpausedAndInfrastructureReady(log),
+				predicates.ResourceNotPausedAndHasFilterLabel(log, r.WatchFilterValue),
+			),
+		).
+		Complete(r)
 }
 
 // Reconcile reconciles Azure json secrets for Azure machine templates.
diff --git a/controllers/resource_reconciler.go b/controllers/resource_reconciler.go
index 0591a53edf3..438e5720572 100644
--- a/controllers/resource_reconciler.go
+++ b/controllers/resource_reconciler.go
@@ -26,7 +26,6 @@ import (
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
-	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/runtime/schema"
 	"k8s.io/klog/v2"
 	infrav1alpha "sigs.k8s.io/cluster-api-provider-azure/api/v1alpha1"
@@ -48,7 +47,7 @@ type ResourceReconciler struct {
 }
 
 type watcher interface {
-	Watch(log logr.Logger, obj runtime.Object, handler handler.EventHandler, p ...predicate.Predicate) error
+	Watch(log logr.Logger, obj client.Object, handler handler.EventHandler, p ...predicate.Predicate) error
 }
 
 type resourceStatusObject interface {
diff --git a/controllers/resource_reconciler_test.go b/controllers/resource_reconciler_test.go
index ea4b4c528d2..3cc12972f99 100644
--- a/controllers/resource_reconciler_test.go
+++ b/controllers/resource_reconciler_test.go
@@ -55,7 +55,7 @@ type FakeWatcher struct {
 	watching map[string]struct{}
 }
 
-func (w *FakeWatcher) Watch(_ logr.Logger, obj runtime.Object, _ handler.EventHandler, _ ...predicate.Predicate) error {
+func (w *FakeWatcher) Watch(_ logr.Logger, obj client.Object, _ handler.EventHandler, _ ...predicate.Predicate) error {
 	if w.watching == nil {
 		w.watching = make(map[string]struct{})
 	}
diff --git a/exp/api/v1beta1/azuremachinepool_webhook_test.go b/exp/api/v1beta1/azuremachinepool_webhook_test.go
index 4714a7768e9..0fa17be5f58 100644
--- a/exp/api/v1beta1/azuremachinepool_webhook_test.go
+++ b/exp/api/v1beta1/azuremachinepool_webhook_test.go
@@ -700,27 +700,29 @@ func TestAzureMachinePool_ValidateCreateFailure(t *testing.T) {
 	g := NewWithT(t)
 
 	tests := []struct {
-		name        string
-		amp         *AzureMachinePool
-		deferFunc   func()
-		expectError bool
+		name               string
+		amp                *AzureMachinePool
+		featureGateEnabled *bool
+		expectError        bool
 	}{
 		{
-			name:        "feature gate explicitly disabled",
-			amp:         getKnownValidAzureMachinePool(),
-			deferFunc:   utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, false),
-			expectError: true,
+			name:               "feature gate explicitly disabled",
+			amp:                getKnownValidAzureMachinePool(),
+			featureGateEnabled: ptr.To(false),
+			expectError:        true,
 		},
 		{
-			name:        "feature gate implicitly enabled",
-			amp:         getKnownValidAzureMachinePool(),
-			deferFunc:   func() {},
-			expectError: false,
+			name:               "feature gate implicitly enabled",
+			amp:                getKnownValidAzureMachinePool(),
+			featureGateEnabled: nil,
+			expectError:        false,
 		},
 	}
 	for _, tc := range tests {
 		t.Run(tc.name, func(t *testing.T) {
-			defer tc.deferFunc()
+			if tc.featureGateEnabled != nil {
+				defer utilfeature.SetFeatureGateDuringTest(t, feature.Gates, capifeature.MachinePool, *tc.featureGateEnabled)()
+			}
 			ampw := &azureMachinePoolWebhook{}
 			_, err := ampw.ValidateCreate(context.Background(), tc.amp)
 			if tc.expectError {
diff --git a/go.mod b/go.mod
index fe97d00ca91..d611263a12f 100644
--- a/go.mod
+++ b/go.mod
@@ -37,7 +37,7 @@ require (
 	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.27.0
 	go.opentelemetry.io/otel/exporters/prometheus v0.46.0
 	go.opentelemetry.io/otel/sdk v1.27.0
-	go.opentelemetry.io/otel/sdk/metric v1.24.0
+	go.opentelemetry.io/otel/sdk/metric v1.27.0
 	go.opentelemetry.io/otel/trace v1.27.0
 	go.uber.org/mock v0.4.0
 	golang.org/x/crypto v0.26.0
@@ -45,34 +45,37 @@ require (
 	golang.org/x/mod v0.20.0
 	golang.org/x/text v0.17.0
 	gopkg.in/yaml.v3 v3.0.1
-	k8s.io/api v0.30.2
-	k8s.io/apimachinery v0.30.2
-	k8s.io/client-go v0.30.2
-	k8s.io/cluster-bootstrap v0.29.3
-	k8s.io/component-base v0.30.2
+	k8s.io/api v0.30.3
+	k8s.io/apimachinery v0.30.3
+	k8s.io/client-go v0.30.3
+	k8s.io/cluster-bootstrap v0.30.3
+	k8s.io/component-base v0.30.3
 	k8s.io/klog/v2 v2.130.1
-	k8s.io/kubectl v0.29.3
+	k8s.io/kubectl v0.30.3
 	k8s.io/utils v0.0.0-20240502163921-fe8a2dddb1d0
-	sigs.k8s.io/cloud-provider-azure v1.29.3
-	sigs.k8s.io/cluster-api v1.7.5
-	sigs.k8s.io/cluster-api/test v1.7.5
-	sigs.k8s.io/controller-runtime v0.18.4
-	sigs.k8s.io/kind v0.24.0
+	sigs.k8s.io/cloud-provider-azure v1.30.4
+	sigs.k8s.io/cluster-api v1.8.1
+	sigs.k8s.io/cluster-api/test v1.8.1
+	sigs.k8s.io/controller-runtime v0.18.5
+	sigs.k8s.io/kind v0.23.0
 )
 
 require (
+	github.com/Azure/azure-sdk-for-go/sdk/keyvault/azsecrets v0.12.0 // indirect
+	github.com/Azure/azure-sdk-for-go/sdk/keyvault/internal v0.7.1 // indirect
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/containerregistry/armcontainerregistry v1.2.0 // indirect
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/keyvault/armkeyvault v1.4.0 // indirect
-	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.5.0 // indirect
+	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.6.0 // indirect
 	github.com/Azure/go-ansiterm v0.0.0-20210617225240-d185dfc1b5a1 // indirect
 	github.com/antlr/antlr4/runtime/Go/antlr/v4 v4.0.0-20230305170008-8188dc5388df // indirect
 	github.com/go-task/slim-sprig/v3 v3.0.0 // indirect
 	github.com/gorilla/websocket v1.5.0 // indirect
+	github.com/moby/docker-image-spec v1.3.1 // indirect
 	github.com/moby/term v0.0.0-20221205130635-1aeaba878587 // indirect
 	github.com/mxk/go-flowrate v0.0.0-20140419014527-cca7078d478f // indirect
-	k8s.io/apiserver v0.30.2 // indirect
-	sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.2 // indirect
-	sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.1 // indirect
+	k8s.io/apiserver v0.30.3 // indirect
+	sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.29 // indirect
+	sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.16 // indirect
 )
 
 require (
@@ -80,7 +83,7 @@ require (
 	github.com/Azure/azure-sdk-for-go/sdk/internal v1.10.0 // indirect
 	github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/kubernetesconfiguration/armkubernetesconfiguration v1.1.1
 	github.com/Azure/go-autorest v14.2.0+incompatible // indirect
-	github.com/Azure/go-autorest/autorest/adal v0.9.23 // indirect
+	github.com/Azure/go-autorest/autorest/adal v0.9.24 // indirect
 	github.com/Azure/go-autorest/autorest/azure/cli v0.4.6 // indirect
 	github.com/Azure/go-autorest/autorest/date v0.3.0 // indirect
 	github.com/Azure/go-autorest/autorest/mocks v0.4.2 // indirect
@@ -97,7 +100,7 @@ require (
 	github.com/Microsoft/go-winio v0.6.0 // indirect
 	github.com/NYTimes/gziphandler v1.1.1 // indirect
 	github.com/ProtonMail/go-crypto v0.0.0-20230217124315-7d5c6f04bbb8 // indirect
-	github.com/adrg/xdg v0.4.0 // indirect
+	github.com/adrg/xdg v0.5.0 // indirect
 	github.com/alessio/shellescape v1.4.2 // indirect
 	github.com/benbjohnson/clock v1.3.5 // indirect
 	github.com/beorn7/perks v1.0.1 // indirect
@@ -107,8 +110,8 @@ require (
 	github.com/cloudflare/circl v1.3.7 // indirect
 	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc // indirect
 	github.com/dimchansky/utfbom v1.1.1 // indirect
-	github.com/distribution/reference v0.5.0 // indirect
-	github.com/docker/docker v25.0.6+incompatible // indirect
+	github.com/distribution/reference v0.6.0 // indirect
+	github.com/docker/docker v27.1.1+incompatible // indirect
 	github.com/docker/go-connections v0.5.0 // indirect
 	github.com/docker/go-units v0.5.0 // indirect
 	github.com/drone/envsubst/v2 v2.0.0-20210730161058-179042472c46 // indirect
@@ -165,7 +168,7 @@ require (
 	github.com/opencontainers/go-digest v1.0.0 // indirect
 	github.com/opencontainers/image-spec v1.1.0-rc2.0.20221005185240-3a7f492d3f1b // indirect
 	github.com/pelletier/go-toml v1.9.5 // indirect
-	github.com/pelletier/go-toml/v2 v2.1.0 // indirect
+	github.com/pelletier/go-toml/v2 v2.2.2 // indirect
 	github.com/peterbourgon/diskv v2.0.1+incompatible // indirect
 	github.com/pkg/browser v0.0.0-20240102092130-5ac0b6a4141c // indirect
 	github.com/prometheus/client_model v0.6.1 // indirect
@@ -178,7 +181,7 @@ require (
 	github.com/spf13/afero v1.11.0 // indirect
 	github.com/spf13/cast v1.6.0 // indirect
 	github.com/spf13/cobra v1.8.1 // indirect
-	github.com/spf13/viper v1.18.2 // indirect
+	github.com/spf13/viper v1.19.0 // indirect
 	github.com/stoewer/go-strcase v1.3.0 // indirect
 	github.com/subosito/gotenv v1.6.0 // indirect
 	github.com/valyala/fastjson v1.6.4 // indirect
@@ -204,10 +207,10 @@ require (
 	gopkg.in/inf.v0 v0.9.1 // indirect
 	gopkg.in/ini.v1 v1.67.0 // indirect
 	gopkg.in/yaml.v2 v2.4.0 // indirect
-	k8s.io/apiextensions-apiserver v0.30.2 // indirect
-	k8s.io/cli-runtime v0.29.3 // indirect
-	k8s.io/cloud-provider v0.29.3 // indirect
-	k8s.io/component-helpers v0.29.3 // indirect
+	k8s.io/apiextensions-apiserver v0.30.3 // indirect
+	k8s.io/cli-runtime v0.30.3 // indirect
+	k8s.io/cloud-provider v0.30.2 // indirect
+	k8s.io/component-helpers v0.30.3 // indirect
 	k8s.io/kube-openapi v0.0.0-20240521193020-835d969ad83a // indirect
 	sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.30.3 // indirect
 	sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd // indirect
@@ -217,29 +220,10 @@ require (
 	sigs.k8s.io/yaml v1.4.0 // indirect
 )
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.7.5
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.8.1
 
-// kube-openapi should match the version imported by CAPI.
-replace k8s.io/kube-openapi => k8s.io/kube-openapi v0.0.0-20231010175941-2dd684a91f00
-
-// Play nice with ASO 2.8. Most of these can probably be removed with CAPI 1.8.
 replace (
 	github.com/google/cel-go => github.com/google/cel-go v0.17.8
 	github.com/prometheus/client_golang => github.com/prometheus/client_golang v1.18.0
 	github.com/prometheus/common => github.com/prometheus/common v0.46.0
-	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp => go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.46.0
-	go.opentelemetry.io/otel => go.opentelemetry.io/otel v1.24.0
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace => go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.24.0
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc => go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.24.0
-	go.opentelemetry.io/otel/metric => go.opentelemetry.io/otel/metric v1.24.0
-	go.opentelemetry.io/otel/sdk => go.opentelemetry.io/otel/sdk v1.24.0
-	go.opentelemetry.io/otel/trace => go.opentelemetry.io/otel/trace v1.24.0
-	go.opentelemetry.io/proto/otlp => go.opentelemetry.io/proto/otlp v1.1.0
-	k8s.io/api => k8s.io/api v0.29.3
-	k8s.io/apiextensions-apiserver => k8s.io/apiextensions-apiserver v0.29.3
-	k8s.io/apimachinery => k8s.io/apimachinery v0.29.3
-	k8s.io/apiserver => k8s.io/apiserver v0.29.3
-	k8s.io/client-go => k8s.io/client-go v0.29.3
-	k8s.io/component-base => k8s.io/component-base v0.29.3
-	sigs.k8s.io/controller-runtime => sigs.k8s.io/controller-runtime v0.17.3
 )
diff --git a/go.sum b/go.sum
index 35affc4dcb2..8b6e342ff60 100644
--- a/go.sum
+++ b/go.sum
@@ -9,6 +9,10 @@ github.com/Azure/azure-sdk-for-go/sdk/azidentity v1.7.0 h1:tfLQ34V6F7tVSwoTf/4lH
 github.com/Azure/azure-sdk-for-go/sdk/azidentity v1.7.0/go.mod h1:9kIvujWAA58nmPmWB1m23fyWic1kYZMxD9CxaWn4Qpg=
 github.com/Azure/azure-sdk-for-go/sdk/internal v1.10.0 h1:ywEEhmNahHBihViHepv3xPBn1663uRv2t2q/ESv9seY=
 github.com/Azure/azure-sdk-for-go/sdk/internal v1.10.0/go.mod h1:iZDifYGJTIgIIkYRNWPENUnqx6bJ2xnSDFI2tjwZNuY=
+github.com/Azure/azure-sdk-for-go/sdk/keyvault/azsecrets v0.12.0 h1:xnO4sFyG8UH2fElBkcqLTOZsAajvKfnSlgBBW8dXYjw=
+github.com/Azure/azure-sdk-for-go/sdk/keyvault/azsecrets v0.12.0/go.mod h1:XD3DIOOVgBCO03OleB1fHjgktVRFxlT++KwKgIOewdM=
+github.com/Azure/azure-sdk-for-go/sdk/keyvault/internal v0.7.1 h1:FbH3BbSb4bvGluTesZZ+ttN/MDsnMmQP36OSnDuSXqw=
+github.com/Azure/azure-sdk-for-go/sdk/keyvault/internal v0.7.1/go.mod h1:9V2j0jn9jDEkCkv8w/bKTNppX/d0FVA1ud77xCIP4KA=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/apimanagement/armapimanagement v1.1.1 h1:jCkNVNpsEevyic4bmjgVjzVA4tMGSJpXNGirf+S+mDI=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/apimanagement/armapimanagement v1.1.1/go.mod h1:a0Ug1l73Il7EhrCJEEt2dGjlNjvphppZq5KqJdgnwuw=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/appconfiguration/armappconfiguration v1.1.1 h1:iRc20pGuVlc1HwRO2bg0m1tfP9rkPB0K88trl8Fei2w=
@@ -35,6 +39,8 @@ github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/eventhub/armeventhub v1.2.
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/eventhub/armeventhub v1.2.0/go.mod h1:tI9M2Q/ueFi287QRkdrhb9LHm6ZnXgkVYLRC3FhYkPw=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/internal/v2 v2.0.0 h1:PTFGRSlMKCQelWwxUyYVEUqseBJVemLyqWJjvMyt0do=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/internal/v2 v2.0.0/go.mod h1:LRr2FzBTQlONPPa5HREE5+RjSCTXl7BwOvYOaWTqCaI=
+github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/internal/v3 v3.0.0 h1:Kb8eVvjdP6kZqYnER5w/PiGCFp91yVgaxve3d7kCEpY=
+github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/internal/v3 v3.0.0/go.mod h1:lYq15QkJyEsNegz5EhI/0SXQ6spvGfgwBH/Qyzkoc/s=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/iothub/armiothub v1.3.0 h1:NZP+oPbAVFy7PhQ4PTD3SuGWbEziNhp7lphGkkN707s=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/iothub/armiothub v1.3.0/go.mod h1:djbLk3ngutFfQ9fSOM29UzywAkcBI1YUsuUnxTQGsqU=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/keyvault/armkeyvault v1.4.0 h1:HlZMUZW8S4P9oob1nCHxCCKrytxyLc+24nUJGssoEto=
@@ -67,8 +73,8 @@ github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/servicebus/armservicebus v
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/servicebus/armservicebus v1.2.0/go.mod h1:1YXAxWw6baox+KafeQU2scy21/4IHvqXoIJuCpcvpMQ=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/signalr/armsignalr v1.2.0 h1:Y8CF7FyuVVDyX5W6Azwjj3PpwUZVbXBOCyQytv/0QEA=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/signalr/armsignalr v1.2.0/go.mod h1:tzUx/enAY8RSmQhRq02uVZFeRJxdGYT6BqXwHiHoOcU=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.5.0 h1:AifHbc4mg0x9zW52WOpKbsHaDKuRhlI7TVl47thgQ70=
-github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.5.0/go.mod h1:T5RfihdXtBDxt1Ch2wobif3TvzTdumDy29kahv6AV9A=
+github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.6.0 h1:PiSrjRPpkQNjrM8H0WwKMnZUdu1RGMtd/LdGKUrOo+c=
+github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/storage/armstorage v1.6.0/go.mod h1:oDrbWx4ewMylP7xHivfgixbfGBT6APAwsSoHRKotnIc=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/subscription/armsubscription v1.2.0 h1:UrGzkHueDwAWDdjQxC+QaXHd4tVCkISYE9j7fSSXF8k=
 github.com/Azure/azure-sdk-for-go/sdk/resourcemanager/subscription/armsubscription v1.2.0/go.mod h1:qskvSQeW+cxEE2bcKYyKimB1/KiQ9xpJ99bcHY0BX6c=
 github.com/Azure/azure-service-operator/v2 v2.8.0 h1:BcyB8LvRmtgVIIUaXwWIJz5eHvknyno0qq5LkDuvM/s=
@@ -82,8 +88,8 @@ github.com/Azure/go-autorest/autorest v0.11.29 h1:I4+HL/JDvErx2LjyzaVxllw2lRDB5/
 github.com/Azure/go-autorest/autorest v0.11.29/go.mod h1:ZtEzC4Jy2JDrZLxvWs8LrBWEBycl1hbT1eknI8MtfAs=
 github.com/Azure/go-autorest/autorest/adal v0.9.18/go.mod h1:XVVeme+LZwABT8K5Lc3hA4nAe8LDBVle26gTrguhhPQ=
 github.com/Azure/go-autorest/autorest/adal v0.9.22/go.mod h1:XuAbAEUv2Tta//+voMI038TrJBqjKam0me7qR+L8Cmk=
-github.com/Azure/go-autorest/autorest/adal v0.9.23 h1:Yepx8CvFxwNKpH6ja7RZ+sKX+DWYNldbLiALMC3BTz8=
-github.com/Azure/go-autorest/autorest/adal v0.9.23/go.mod h1:5pcMqFkdPhviJdlEy3kC/v1ZLnQl0MH6XA5YCcMhy4c=
+github.com/Azure/go-autorest/autorest/adal v0.9.24 h1:BHZfgGsGwdkHDyZdtQRQk1WeUdW0m2WPAwuHZwUi5i4=
+github.com/Azure/go-autorest/autorest/adal v0.9.24/go.mod h1:7T1+g0PYFmACYW5LlG2fcoPiPlFHjClyRGL7dRlP5c8=
 github.com/Azure/go-autorest/autorest/azure/auth v0.5.13 h1:Ov8avRZi2vmrE2JcXw+tu5K/yB41r7xK9GZDiBF7NdM=
 github.com/Azure/go-autorest/autorest/azure/auth v0.5.13/go.mod h1:5BAVfWLWXihP47vYrPuBKKf4cS0bXI+KM9Qx6ETDJYo=
 github.com/Azure/go-autorest/autorest/azure/cli v0.4.6 h1:w77/uPk80ZET2F+AfQExZyEWtn+0Rk/uw17m9fv5Ajc=
@@ -121,8 +127,8 @@ github.com/NYTimes/gziphandler v1.1.1 h1:ZUDjpQae29j0ryrS0u/B8HZfJBtBQHjqw2rQ2cq
 github.com/NYTimes/gziphandler v1.1.1/go.mod h1:n/CVRwUEOgIxrgPvAQhUUr9oeUtvrhMomdKFjzJNB0c=
 github.com/ProtonMail/go-crypto v0.0.0-20230217124315-7d5c6f04bbb8 h1:wPbRQzjjwFc0ih8puEVAOFGELsn1zoIIYdxvML7mDxA=
 github.com/ProtonMail/go-crypto v0.0.0-20230217124315-7d5c6f04bbb8/go.mod h1:I0gYDMZ6Z5GRU7l58bNFSkPTFN6Yl12dsUlAZ8xy98g=
-github.com/adrg/xdg v0.4.0 h1:RzRqFcjH4nE5C6oTAxhBtoE2IRyjBSa62SCbyPidvls=
-github.com/adrg/xdg v0.4.0/go.mod h1:N6ag73EX4wyxeaoeHctc1mas01KZgsj5tYiAIwqJE/E=
+github.com/adrg/xdg v0.5.0 h1:dDaZvhMXatArP1NPHhnfaQUqWBLBsmx1h1HXQdMoFCY=
+github.com/adrg/xdg v0.5.0/go.mod h1:dDdY4M4DF9Rjy4kHPeNL+ilVF+p2lK8IdM9/rTSGcI4=
 github.com/alessio/shellescape v1.4.2 h1:MHPfaU+ddJ0/bYWpgIeUnQUqKrlJ1S7BfEYPM4uEoM0=
 github.com/alessio/shellescape v1.4.2/go.mod h1:PZAiSCk0LJaZkiCSkPv8qIobYglO3FPpyFjDCtHLS30=
 github.com/antlr/antlr4/runtime/Go/antlr/v4 v4.0.0-20230305170008-8188dc5388df h1:7RFfzj4SSt6nnvCPbCqijJi1nWCd+TqAT3bYCStRC18=
@@ -154,10 +160,10 @@ github.com/cloudflare/circl v1.3.7 h1:qlCDlTPz2n9fu58M0Nh1J/JzcFpfgkFHHX3O35r5vc
 github.com/cloudflare/circl v1.3.7/go.mod h1:sRTcRWXGLrKw6yIGJ+l7amYJFfAXbZG0kBSc8r4zxgA=
 github.com/containerd/log v0.1.0 h1:TCJt7ioM2cr/tfR8GPbGf9/VRAX8D2B4PjzCpfX540I=
 github.com/containerd/log v0.1.0/go.mod h1:VRRf09a7mHDIRezVKTRCrOq78v577GXq3bSa3EhrzVo=
-github.com/coredns/caddy v1.1.0 h1:ezvsPrT/tA/7pYDBZxu0cT0VmWk75AfIaf6GSYCNMf0=
-github.com/coredns/caddy v1.1.0/go.mod h1:A6ntJQlAWuQfFlsd9hvigKbo2WS0VUs2l1e2F+BawD4=
-github.com/coredns/corefile-migration v1.0.21 h1:W/DCETrHDiFo0Wj03EyMkaQ9fwsmSgqTCQDHpceaSsE=
-github.com/coredns/corefile-migration v1.0.21/go.mod h1:XnhgULOEouimnzgn0t4WPuFDN2/PJQcTxdWKC5eXNGE=
+github.com/coredns/caddy v1.1.1 h1:2eYKZT7i6yxIfGP3qLJoJ7HAsDJqYB+X68g4NYjSrE0=
+github.com/coredns/caddy v1.1.1/go.mod h1:A6ntJQlAWuQfFlsd9hvigKbo2WS0VUs2l1e2F+BawD4=
+github.com/coredns/corefile-migration v1.0.23 h1:Fp4FETmk8sT/IRgnKX2xstC2dL7+QdcU+BL5AYIN3Jw=
+github.com/coredns/corefile-migration v1.0.23/go.mod h1:8HyMhuyzx9RLZp8cRc9Uf3ECpEAafHOFxQWUPqktMQI=
 github.com/coreos/go-semver v0.3.1 h1:yi21YpKnrx1gt5R+la8n5WgS0kCrsPp33dmEyHReZr4=
 github.com/coreos/go-semver v0.3.1/go.mod h1:irMmmIw/7yzSRPWryHsK7EYSg09caPQL03VsM8rvUec=
 github.com/coreos/go-systemd v0.0.0-20191104093116-d3cd4ed1dbcf h1:iW4rZ826su+pqaw19uhpSCzhj44qo35pNgKFGqzDKkU=
@@ -172,12 +178,12 @@ github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc h1:U9qPSI2PIWSS1
 github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
 github.com/dimchansky/utfbom v1.1.1 h1:vV6w1AhK4VMnhBno/TPVCoK9U/LP0PkLCS9tbxHdi/U=
 github.com/dimchansky/utfbom v1.1.1/go.mod h1:SxdoEBH5qIqFocHMyGOXVAybYJdr71b1Q/j0mACtrfE=
-github.com/distribution/reference v0.5.0 h1:/FUIFXtfc/x2gpa5/VGfiGLuOIdYa1t65IKK2OFGvA0=
-github.com/distribution/reference v0.5.0/go.mod h1:BbU0aIcezP1/5jX/8MP0YiH4SdvB5Y4f/wlDRiLyi3E=
+github.com/distribution/reference v0.6.0 h1:0IXCQ5g4/QMHHkarYzh5l+u8T3t73zM5QvfrDyIgxBk=
+github.com/distribution/reference v0.6.0/go.mod h1:BbU0aIcezP1/5jX/8MP0YiH4SdvB5Y4f/wlDRiLyi3E=
 github.com/dnaeon/go-vcr v1.2.0 h1:zHCHvJYTMh1N7xnV7zf1m1GPBF9Ad0Jk/whtQ1663qI=
 github.com/dnaeon/go-vcr v1.2.0/go.mod h1:R4UdLID7HZT3taECzJs4YgbbH6PIGXB6W/sc5OLb6RQ=
-github.com/docker/docker v25.0.6+incompatible h1:5cPwbwriIcsua2REJe8HqQV+6WlWc1byg2QSXzBxBGg=
-github.com/docker/docker v25.0.6+incompatible/go.mod h1:eEKB0N0r5NX/I1kEveEz05bcu8tLC/8azJZsviup8Sk=
+github.com/docker/docker v27.1.1+incompatible h1:hO/M4MtV36kzKldqnA37IWhebRA+LnqqcqDja6kVaKY=
+github.com/docker/docker v27.1.1+incompatible/go.mod h1:eEKB0N0r5NX/I1kEveEz05bcu8tLC/8azJZsviup8Sk=
 github.com/docker/go-connections v0.5.0 h1:USnMq7hx7gwdVZq1L49hLXaFtUdTADjXGp+uj1Br63c=
 github.com/docker/go-connections v0.5.0/go.mod h1:ov60Kzw0kKElRwhNs9UlUHAE/F9Fe6GLaXnqyDdmEXc=
 github.com/docker/go-units v0.5.0 h1:69rxXcBk27SvSaaxTtLh/8llcHD8vYHT7WSdRZ/jvr4=
@@ -196,8 +202,8 @@ github.com/evanphx/json-patch/v5 v5.9.0 h1:kcBlZQbplgElYIlo/n1hJbls2z/1awpXxpRi0
 github.com/evanphx/json-patch/v5 v5.9.0/go.mod h1:VNkHZ/282BpEyt/tObQO8s5CMPmYYq14uClGH4abBuQ=
 github.com/fatih/camelcase v1.0.0 h1:hxNvNX/xYBp0ovncs8WyWZrOrpBNub/JfaMvbURyft8=
 github.com/fatih/camelcase v1.0.0/go.mod h1:yN2Sb0lFhZJUdVvtELVWefmrXpuZESvPmqwoZc+/fpc=
-github.com/fatih/color v1.16.0 h1:zmkK9Ngbjj+K0yRhTVONQh1p/HknKYSlNT+vZCzyokM=
-github.com/fatih/color v1.16.0/go.mod h1:fL2Sau1YI5c0pdGEVCbKQbLXB6edEj1ZgiY4NijnWvE=
+github.com/fatih/color v1.17.0 h1:GlRw1BRJxkpqUCBKzKOw098ed57fEsKeNjpTe3cSjK4=
+github.com/fatih/color v1.17.0/go.mod h1:YZ7TlrGPkiz6ku9fK3TLD/pl3CpsiFyu8N92HLgmosI=
 github.com/felixge/httpsnoop v1.0.4 h1:NFTV2Zj1bL4mc9sqWACXbQFVBBg2W3GPvqp8/ESS2Wg=
 github.com/felixge/httpsnoop v1.0.4/go.mod h1:m8KPJKqk1gH5J9DgRY2ASl2lWCfGKXixSwevea8zH2U=
 github.com/frankban/quicktest v1.14.6 h1:7Xjx+VpznH+oBnejlPUj8oUpdxnVs4f8XU8WnHkI4W8=
@@ -362,6 +368,8 @@ github.com/mitchellh/mapstructure v1.5.0/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RR
 github.com/mitchellh/reflectwalk v1.0.0/go.mod h1:mSTlrgnPZtwu0c4WaC2kGObEpuNDbx0jmZXqmk4esnw=
 github.com/mitchellh/reflectwalk v1.0.2 h1:G2LzWKi524PWgd3mLHV8Y5k7s6XUvT0Gef6zxSIeXaQ=
 github.com/mitchellh/reflectwalk v1.0.2/go.mod h1:mSTlrgnPZtwu0c4WaC2kGObEpuNDbx0jmZXqmk4esnw=
+github.com/moby/docker-image-spec v1.3.1 h1:jMKff3w6PgbfSa69GfNg+zN/XLhfXJGnEx3Nl2EsFP0=
+github.com/moby/docker-image-spec v1.3.1/go.mod h1:eKmb5VW8vQEh/BAr2yvVNvuiJuY6UIocYsFu/DxxRpo=
 github.com/moby/spdystream v0.2.0 h1:cjW1zVyyoiM0T7b6UoySUFqzXMoqRckQtXwGPiBhOM8=
 github.com/moby/spdystream v0.2.0/go.mod h1:f7i0iNDQJ059oMTcWxx8MA/zKFIuD/lY+0GqbN2Wy8c=
 github.com/moby/term v0.0.0-20221205130635-1aeaba878587 h1:HfkjXDfhgVaN5rmueG8cL8KKeFNecRCXFhaJ2qZ5SKA=
@@ -389,8 +397,8 @@ github.com/opencontainers/image-spec v1.1.0-rc2.0.20221005185240-3a7f492d3f1b h1
 github.com/opencontainers/image-spec v1.1.0-rc2.0.20221005185240-3a7f492d3f1b/go.mod h1:3OVijpioIKYWTqjiG0zfF6wvoJ4fAXGbjdZuI2NgsRQ=
 github.com/pelletier/go-toml v1.9.5 h1:4yBQzkHv+7BHq2PQUZF3Mx0IYxG7LsP222s7Agd3ve8=
 github.com/pelletier/go-toml v1.9.5/go.mod h1:u1nR/EPcESfeI/szUZKdtJ0xRNbUoANCkoOuaOx1Y+c=
-github.com/pelletier/go-toml/v2 v2.1.0 h1:FnwAJ4oYMvbT/34k9zzHuZNrhlz48GB3/s6at6/MHO4=
-github.com/pelletier/go-toml/v2 v2.1.0/go.mod h1:tJU2Z3ZkXwnxa4DPO899bsyIoywizdUvyaeZurnPPDc=
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@@ -438,14 +446,15 @@ github.com/spf13/cobra v1.8.1 h1:e5/vxKd/rZsfSJMUX1agtjeTDf+qv1/JdBF8gg5k9ZM=
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-github.com/spf13/viper v1.18.2/go.mod h1:EKmWIqdnk5lOcmR72yw6hS+8OPYcwD0jteitLMVB+yk=
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-github.com/stretchr/objx v0.5.0 h1:1zr/of2m5FGMsad5YfcqgdqdWrIhu+EBEJRhR1U7z/c=
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@@ -472,44 +481,44 @@ github.com/yuin/goldmark v1.2.1/go.mod h1:3hX8gzYuyVAZsxl0MRgGTJEmQBFcNTphYh9dec
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-go.etcd.io/etcd/api/v3 v3.5.13 h1:8WXU2/NBge6AUF1K1gOexB6e07NgsN1hXK0rSTtgSp4=
-go.etcd.io/etcd/api/v3 v3.5.13/go.mod h1:gBqlqkcMMZMVTMm4NDZloEVJzxQOQIls8splbqBDa0c=
-go.etcd.io/etcd/client/pkg/v3 v3.5.13 h1:RVZSAnWWWiI5IrYAXjQorajncORbS0zI48LQlE2kQWg=
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-go.etcd.io/etcd/client/v2 v2.305.10/go.mod h1:m3CKZi69HzilhVqtPDcjhSGp+kA1OmbNn0qamH80xjA=
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-go.etcd.io/etcd/client/v3 v3.5.13/go.mod h1:cqiAeY8b5DEEcpxvgWKsbLIWNM/8Wy2xJSDMtioMcoI=
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 go.etcd.io/etcd/raft/v3 v3.5.10 h1:cgNAYe7xrsrn/5kXMSaH8kM/Ky8mAdMqGOxyYwpP0LA=
 go.etcd.io/etcd/raft/v3 v3.5.10/go.mod h1:odD6kr8XQXTy9oQnyMPBOr0TVe+gT0neQhElQ6jbGRc=
 go.etcd.io/etcd/server/v3 v3.5.10 h1:4NOGyOwD5sUZ22PiWYKmfxqoeh72z6EhYjNosKGLmZg=
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-go.opentelemetry.io/contrib/instrumentation/google.golang.org/grpc/otelgrpc v0.46.0 h1:PzIubN4/sjByhDRHLviCjJuweBXWFZWhghjg7cS28+M=
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-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.46.0 h1:1eHu3/pUSWaOgltNK3WJFaywKsTIr/PwvHyDmi0lQA0=
-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.46.0/go.mod h1:HyABWq60Uy1kjJSa2BVOxUVao8Cdick5AWSKPutqy6U=
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+go.opentelemetry.io/proto/otlp v1.3.1 h1:TrMUixzpM0yuc/znrFTP9MMRh8trP93mkCiDVeXrui0=
+go.opentelemetry.io/proto/otlp v1.3.1/go.mod h1:0X1WI4de4ZsLrrJNLAQbFeLCm3T7yBkR0XqQ7niQU+8=
 go.starlark.net v0.0.0-20230525235612-a134d8f9ddca h1:VdD38733bfYv5tUZwEIskMM93VanwNIi5bIKnDrJdEY=
 go.starlark.net v0.0.0-20230525235612-a134d8f9ddca/go.mod h1:jxU+3+j+71eXOW14274+SmmuW82qJzl6iZSeqEtTGds=
 go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
@@ -518,8 +527,8 @@ go.uber.org/mock v0.4.0 h1:VcM4ZOtdbR4f6VXfiOpwpVJDL6lCReaZ6mw31wqh7KU=
 go.uber.org/mock v0.4.0/go.mod h1:a6FSlNadKUHUa9IP5Vyt1zh4fC7uAwxMutEAscFbkZc=
 go.uber.org/multierr v1.11.0 h1:blXXJkSxSSfBVBlC76pxqeO+LN3aDfLQo+309xJstO0=
 go.uber.org/multierr v1.11.0/go.mod h1:20+QtiLqy0Nd6FdQB9TLXag12DsQkrbs3htMFfDN80Y=
-go.uber.org/zap v1.26.0 h1:sI7k6L95XOKS281NhVKOFCUNIvv9e0w4BF8N3u+tCRo=
-go.uber.org/zap v1.26.0/go.mod h1:dtElttAiwGvoJ/vj4IwHBS/gXsEu/pZ50mUIRWuG0so=
+go.uber.org/zap v1.27.0 h1:aJMhYGrd5QSmlpLMr2MftRKl7t8J8PTZPA732ud/XR8=
+go.uber.org/zap v1.27.0/go.mod h1:GB2qFLM7cTU87MWRP2mPIjqfIDnGu+VIO4V/SdhGo2E=
 golang.org/x/crypto v0.0.0-20190308221718-c2843e01d9a2/go.mod h1:djNgcEr1/C05ACkg1iLfiJU5Ep61QUkGW8qpdssI0+w=
 golang.org/x/crypto v0.0.0-20191011191535-87dc89f01550/go.mod h1:yigFU9vqHzYiE8UmvKecakEJjdnWj3jj499lnFckfCI=
 golang.org/x/crypto v0.0.0-20200622213623-75b288015ac9/go.mod h1:LzIPMQfyMNhhGPhUkYOs5KpL4U8rLKemX1yGLhDgUto=
@@ -581,7 +590,6 @@ golang.org/x/sys v0.0.0-20210423082822-04245dca01da/go.mod h1:h1NjWce9XRLGQEsW7w
 golang.org/x/sys v0.0.0-20210615035016-665e8c7367d1/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20210616094352-59db8d763f22/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20211007075335-d3039528d8ac/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
-golang.org/x/sys v0.0.0-20211025201205-69cdffdb9359/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20220520151302-bc2c85ada10a/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20220715151400-c0bba94af5f8/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20220722155257-8c9f86f7a55f/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
@@ -638,8 +646,8 @@ google.golang.org/appengine v1.4.0/go.mod h1:xpcJRLb0r/rnEns0DIKYYv+WjYCduHsrkT7
 google.golang.org/genproto v0.0.0-20180817151627-c66870c02cf8/go.mod h1:JiN7NxoALGmiZfu7CAH4rXhgtRTLTxftemlI0sWmxmc=
 google.golang.org/genproto v0.0.0-20190819201941-24fa4b261c55/go.mod h1:DMBHOl98Agz4BDEuKkezgsaosCRResVns1a3J2ZsMNc=
 google.golang.org/genproto v0.0.0-20200526211855-cb27e3aa2013/go.mod h1:NbSheEEYHJ7i3ixzK3sjbqSGDJWnxyFXZblF3eUsNvo=
-google.golang.org/genproto v0.0.0-20231106174013-bbf56f31fb17 h1:wpZ8pe2x1Q3f2KyT5f8oP/fa9rHAKgFPr/HZdNuS+PQ=
-google.golang.org/genproto v0.0.0-20231106174013-bbf56f31fb17/go.mod h1:J7XzRzVy1+IPwWHZUzoD0IccYZIrXILAQpc+Qy9CMhY=
+google.golang.org/genproto v0.0.0-20240213162025-012b6fc9bca9 h1:9+tzLLstTlPTRyJTh+ah5wIMsBW5c4tQwGTN3thOW9Y=
+google.golang.org/genproto v0.0.0-20240213162025-012b6fc9bca9/go.mod h1:mqHbVIp48Muh7Ywss/AD6I5kNVKZMmAa/QEW58Gxp2s=
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 google.golang.org/genproto/googleapis/api v0.0.0-20240610135401-a8a62080eff3/go.mod h1:kdrSS/OiLkPrNUpzD4aHgCq2rVuC/YRxok32HXZ4vRE=
 google.golang.org/genproto/googleapis/rpc v0.0.0-20240610135401-a8a62080eff3 h1:9Xyg6I9IWQZhRVfCWjKK+l6kI0jHcPesVlMnT//aHNo=
@@ -682,52 +690,52 @@ gotest.tools/v3 v3.4.0 h1:ZazjZUfuVeZGLAmlKKuyv3IKP5orXcwtOwDQH6YVr6o=
 gotest.tools/v3 v3.4.0/go.mod h1:CtbdzLSsqVhDgMtKsx03ird5YTGB3ar27v0u/yKBW5g=
 honnef.co/go/tools v0.0.0-20190102054323-c2f93a96b099/go.mod h1:rf3lG4BRIbNafJWhAfAdb/ePZxsR/4RtNHQocxwk9r4=
 honnef.co/go/tools v0.0.0-20190523083050-ea95bdfd59fc/go.mod h1:rf3lG4BRIbNafJWhAfAdb/ePZxsR/4RtNHQocxwk9r4=
-k8s.io/api v0.29.3 h1:2ORfZ7+bGC3YJqGpV0KSDDEVf8hdGQ6A03/50vj8pmw=
-k8s.io/api v0.29.3/go.mod h1:y2yg2NTyHUUkIoTC+phinTnEa3KFM6RZ3szxt014a80=
-k8s.io/apiextensions-apiserver v0.29.3 h1:9HF+EtZaVpFjStakF4yVufnXGPRppWFEQ87qnO91YeI=
-k8s.io/apiextensions-apiserver v0.29.3/go.mod h1:po0XiY5scnpJfFizNGo6puNU6Fq6D70UJY2Cb2KwAVc=
-k8s.io/apimachinery v0.29.3 h1:2tbx+5L7RNvqJjn7RIuIKu9XTsIZ9Z5wX2G22XAa5EU=
-k8s.io/apimachinery v0.29.3/go.mod h1:hx/S4V2PNW4OMg3WizRrHutyB5la0iCUbZym+W0EQIU=
-k8s.io/apiserver v0.29.3 h1:xR7ELlJ/BZSr2n4CnD3lfA4gzFivh0wwfNfz9L0WZcE=
-k8s.io/apiserver v0.29.3/go.mod h1:hrvXlwfRulbMbBgmWRQlFru2b/JySDpmzvQwwk4GUOs=
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-k8s.io/cli-runtime v0.29.3/go.mod h1:aqVUsk86/RhaGJwDhHXH0jcdqBrgdF3bZWk4Z9D4mkM=
-k8s.io/client-go v0.29.3 h1:R/zaZbEAxqComZ9FHeQwOh3Y1ZUs7FaHKZdQtIc2WZg=
-k8s.io/client-go v0.29.3/go.mod h1:tkDisCvgPfiRpxGnOORfkljmS+UrW+WtXAy2fTvXJB0=
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-k8s.io/cluster-bootstrap v0.29.3/go.mod h1:aPAg1VtXx3uRrx5qU2jTzR7p1rf18zLXWS+pGhiqPto=
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-k8s.io/component-base v0.29.3/go.mod h1:Yuj33XXjuOk2BAaHsIGHhCKZQAgYKhqIxIjIr2UXYio=
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 k8s.io/klog/v2 v2.130.1 h1:n9Xl7H1Xvksem4KFG4PYbdQCQxqc/tTUyrgXaOhHSzk=
 k8s.io/klog/v2 v2.130.1/go.mod h1:3Jpz1GvMt720eyJH1ckRHK1EDfpxISzJ7I9OYgaDtPE=
-k8s.io/kube-openapi v0.0.0-20231010175941-2dd684a91f00 h1:aVUu9fTY98ivBPKR9Y5w/AuzbMm96cd3YHRTU83I780=
-k8s.io/kube-openapi v0.0.0-20231010175941-2dd684a91f00/go.mod h1:AsvuZPBlUDVuCdzJ87iajxtXuR9oktsTctW/R9wwouA=
-k8s.io/kubectl v0.29.3 h1:RuwyyIU42MAISRIePaa8Q7A3U74Q9P4MoJbDFz9o3us=
-k8s.io/kubectl v0.29.3/go.mod h1:yCxfY1dbwgVdEt2zkJ6d5NNLOhhWgTyrqACIoFhpdd4=
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 k8s.io/utils v0.0.0-20240502163921-fe8a2dddb1d0 h1:jgGTlFYnhF1PM1Ax/lAlxUPE+KfCIXHaathvJg1C3ak=
 k8s.io/utils v0.0.0-20240502163921-fe8a2dddb1d0/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.30.3 h1:2770sDpzrjjsAtVhSeUFseziht227YAWYHLGNM8QPwY=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.30.3/go.mod h1:Ve9uj1L+deCXFrPOk1LpFXqTg7LCFzFso6PA48q/XZw=
-sigs.k8s.io/cloud-provider-azure v1.29.3 h1:P7WRYtDhTXOkWuxIuySg1k7FJKVBg7g8NMo+aY8e684=
-sigs.k8s.io/cloud-provider-azure v1.29.3/go.mod h1:HtxxVO+zvNjzJpg3Dq3PAOuWsQoZ2cSjuy24lzry3hY=
-sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.2 h1:9Zp+uWnxdUOoy/FaQK1DjPfLrzw8TyMEf0aaQ0dtq6c=
-sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.2/go.mod h1:JKWYkoOyET3wsN0Kk9WxA+zpopkuCy+v4+mrnJ60Yyk=
-sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.1 h1:Lp0nALZmvMJoiVeVV6XjnZv1uClfArnThhuDAjaqE5A=
-sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.1/go.mod h1:pPkJPx/eMVWP3R+LhPoOYGoY7lywcMJev5L2uSfH+Jo=
-sigs.k8s.io/cluster-api v1.7.5 h1:FNg2av2yX4eegJzoZAqV7VfhCKdbyl/I+8tuyhA8xLc=
-sigs.k8s.io/cluster-api v1.7.5/go.mod h1:V9ZhKLvQtsDODwjXOKgbitjyCmC71yMBwDcMyNNIov0=
-sigs.k8s.io/cluster-api/test v1.7.5 h1:aCDN/o2MMO3ZRkJb5F3K9QLH/dnI6AgUtKcG4F3bKes=
-sigs.k8s.io/cluster-api/test v1.7.5/go.mod h1:duCbyppQEogtpqA8PupIRX1O2b7qh6xrwrpFTexr1DY=
-sigs.k8s.io/controller-runtime v0.17.3 h1:65QmN7r3FWgTxDMz9fvGnO1kbf2nu+acg9p2R9oYYYk=
-sigs.k8s.io/controller-runtime v0.17.3/go.mod h1:N0jpP5Lo7lMTF9aL56Z/B2oWBJjey6StQM0jRbKQXtY=
+sigs.k8s.io/cloud-provider-azure v1.30.4 h1:KD9wH7JAEnYNLQnk6tT78RHGc2iIx1F5BnNBtpm3uAI=
+sigs.k8s.io/cloud-provider-azure v1.30.4/go.mod h1:MAzEM7J+Kg949oUwNdzft7N6SCj81DtEJclMxCXwv3U=
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+sigs.k8s.io/cloud-provider-azure/pkg/azclient v0.0.29/go.mod h1:ZFAt0qF1kR+w8nBVJK56s6CFvLrlosN1i2c+Sxb7LBk=
+sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.16 h1:Fm/Yjv4nXjUtJ90uXKSKwPwaTWYuDFMhDNNOd77PlOg=
+sigs.k8s.io/cloud-provider-azure/pkg/azclient/configloader v0.0.16/go.mod h1:+kl90flu4+WCP6HBGVYbKVQR+5ztDzUNrWJz8rsnvRU=
+sigs.k8s.io/cluster-api v1.8.1 h1:OA3w1CjCmXXXDL7aY3WDe+seL0mdFVJX1K5mZwqKbDE=
+sigs.k8s.io/cluster-api v1.8.1/go.mod h1:pXv5LqLxuIbhGIXykyNKiJh+KrLweSBajVHHitPLyoY=
+sigs.k8s.io/cluster-api/test v1.8.1 h1:f8T5mPVwNxxFYhdWARJcbtf3hZIqAzSmD/L2WdiEgmI=
+sigs.k8s.io/cluster-api/test v1.8.1/go.mod h1:tOLF0saxjx08hoQfXOR484cK+sMmusSGhh1209klXF8=
+sigs.k8s.io/controller-runtime v0.18.5 h1:nTHio/W+Q4aBlQMgbnC5hZb4IjIidyrizMai9P6n4Rk=
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 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd h1:EDPBXCAspyGV4jQlpZSudPeMmr1bNJefnuqLsRAsHZo=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd/go.mod h1:B8JuhiUyNFVKdsE8h686QcCxMaH6HrOAZj4vswFpcB0=
-sigs.k8s.io/kind v0.24.0 h1:g4y4eu0qa+SCeKESLpESgMmVFBebL0BDa6f777OIWrg=
-sigs.k8s.io/kind v0.24.0/go.mod h1:t7ueEpzPYJvHA8aeLtI52rtFftNgUYUaCwvxjk7phfw=
+sigs.k8s.io/kind v0.23.0 h1:8fyDGWbWTeCcCTwA04v4Nfr45KKxbSPH1WO9K+jVrBg=
+sigs.k8s.io/kind v0.23.0/go.mod h1:ZQ1iZuJLh3T+O8fzhdi3VWcFTzsdXtNv2ppsHc8JQ7s=
 sigs.k8s.io/kustomize/api v0.13.5-0.20230601165947-6ce0bf390ce3 h1:XX3Ajgzov2RKUdc5jW3t5jwY7Bo7dcRm+tFxT+NfgY0=
 sigs.k8s.io/kustomize/api v0.13.5-0.20230601165947-6ce0bf390ce3/go.mod h1:9n16EZKMhXBNSiUC5kSdFQJkdH3zbxS/JoO619G1VAY=
 sigs.k8s.io/kustomize/kyaml v0.14.3-0.20230601165947-6ce0bf390ce3 h1:W6cLQc5pnqM7vh3b7HvGNfXrJ/xL6BDMS0v1V/HHg5U=
diff --git a/main.go b/main.go
index 206a4632836..8aa08637a4b 100644
--- a/main.go
+++ b/main.go
@@ -113,7 +113,7 @@ var (
 	healthAddr                         string
 	webhookPort                        int
 	webhookCertDir                     string
-	diagnosticsOptions                 = flags.DiagnosticsOptions{}
+	managerOptions                     = flags.ManagerOptions{}
 	timeouts                           reconciler.Timeouts
 	enableTracing                      bool
 )
@@ -262,7 +262,7 @@ func InitFlags(fs *pflag.FlagSet) {
 		"Provide fully qualified GVK string to override default kubeadm config watch source, in the form of Kind.version.group (default: KubeadmConfig.v1beta1.bootstrap.cluster.x-k8s.io)",
 	)
 
-	flags.AddDiagnosticsOptions(fs, &diagnosticsOptions)
+	flags.AddManagerOptions(fs, &managerOptions)
 
 	feature.MutableGates.AddFlag(fs)
 }
@@ -286,7 +286,11 @@ func main() {
 		BurstSize: 100,
 	})
 
-	diagnosticsOpts := flags.GetDiagnosticsOptions(diagnosticsOptions)
+	tlsOptions, metricsOptions, err := flags.GetManagerOptions(managerOptions)
+	if err != nil {
+		setupLog.Error(err, "Unable to start manager: invalid flags")
+		os.Exit(1)
+	}
 
 	var watchNamespaces map[string]cache.Config
 	if watchNamespace != "" {
@@ -309,7 +313,7 @@ func main() {
 		LeaderElectionResourceLock: resourcelock.LeasesResourceLock,
 		HealthProbeBindAddress:     healthAddr,
 		PprofBindAddress:           profilerAddress,
-		Metrics:                    diagnosticsOpts,
+		Metrics:                    *metricsOptions,
 		Cache: cache.Options{
 			DefaultNamespaces: watchNamespaces,
 			SyncPeriod:        &syncPeriod,
@@ -325,6 +329,7 @@ func main() {
 		WebhookServer: webhook.NewServer(webhook.Options{
 			Port:    webhookPort,
 			CertDir: webhookCertDir,
+			TLSOpts: tlsOptions,
 		}),
 		EventBroadcaster: broadcaster,
 	})
diff --git a/test/e2e/cni.go b/test/e2e/cni.go
index e242288365c..a0d236256af 100644
--- a/test/e2e/cni.go
+++ b/test/e2e/cni.go
@@ -59,7 +59,7 @@ func InstallCNIManifest(ctx context.Context, input clusterctl.ApplyCustomCluster
 	cniYaml, err := os.ReadFile(input.CNIManifestPath)
 	Expect(err).NotTo(HaveOccurred())
 
-	Expect(workloadCluster.Apply(ctx, cniYaml)).To(Succeed())
+	Expect(workloadCluster.CreateOrUpdate(ctx, cniYaml)).To(Succeed())
 }
 
 // EnsureCalicoIsReady copies the kubeadm configmap to the calico-system namespace and waits for the calico pods to be ready.
diff --git a/test/e2e/config/azure-dev.yaml b/test/e2e/config/azure-dev.yaml
index 895019b6034..8df112a228e 100644
--- a/test/e2e/config/azure-dev.yaml
+++ b/test/e2e/config/azure-dev.yaml
@@ -3,11 +3,11 @@ managementClusterName: capz-e2e
 images:
   - name: ${MANAGER_IMAGE}
     loadBehavior: mustLoad
-  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.7.5
+  - name: registry.k8s.io/cluster-api/cluster-api-controller:v1.8.1
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.7.5
+  - name: registry.k8s.io/cluster-api/kubeadm-bootstrap-controller:v1.8.1
     loadBehavior: tryLoad
-  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.7.5
+  - name: registry.k8s.io/cluster-api/kubeadm-control-plane-controller:v1.8.1
     loadBehavior: tryLoad
   - name: registry.k8s.io/cluster-api-helm/cluster-api-helm-controller:v0.2.5
     loadBehavior: tryLoad
@@ -16,8 +16,8 @@ providers:
   - name: cluster-api
     type: CoreProvider
     versions:
-    - name: v1.6.8 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
-      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.6.8/core-components.yaml"
+    - name: v1.7.5 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
+      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/core-components.yaml"
       type: "url"
       contract: v1beta1
       replacements:
@@ -25,8 +25,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.5
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/core-components.yaml
+    - name: v1.8.1
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/core-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -39,8 +39,8 @@ providers:
   - name: kubeadm
     type: BootstrapProvider
     versions:
-    - name: v1.6.8 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
-      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.6.8/bootstrap-components.yaml"
+    - name: v1.7.5 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
+      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/bootstrap-components.yaml"
       type: "url"
       contract: v1beta1
       replacements:
@@ -48,8 +48,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.5
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/bootstrap-components.yaml
+    - name: v1.8.1
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/bootstrap-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -61,8 +61,8 @@ providers:
   - name: kubeadm
     type: ControlPlaneProvider
     versions:
-    - name: v1.6.8 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
-      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.6.8/control-plane-components.yaml"
+    - name: v1.7.5 # latest patch of earliest minor in supported v1beta1 releases; this is used for v1beta1 old --> v1beta1 latest clusterctl upgrades test only.
+      value: "https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/control-plane-components.yaml"
       type: "url"
       contract: v1beta1
       replacements:
@@ -70,8 +70,8 @@ providers:
           new: --metrics-addr=:8080
       files:
         - sourcePath: "../data/shared/v1beta1/metadata.yaml"
-    - name: v1.7.5
-      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.7.5/control-plane-components.yaml
+    - name: v1.8.1
+      value: https://github.com/kubernetes-sigs/cluster-api/releases/download/v1.8.1/control-plane-components.yaml
       type: url
       contract: v1beta1
       files:
@@ -223,8 +223,8 @@ variables:
   SECURITY_SCAN_FAIL_THRESHOLD: "${SECURITY_SCAN_FAIL_THRESHOLD:-100}"
   SECURITY_SCAN_CONTAINER: "${SECURITY_SCAN_CONTAINER:-quay.io/armosec/kubescape:v2.0.167}"
   AZURE_CNI_V1_MANIFEST_PATH: "${PWD}/templates/addons/azure-cni-v1.yaml"
-  OLD_CAPI_UPGRADE_VERSION: "v1.6.8"
-  LATEST_CAPI_UPGRADE_VERSION: "v1.7.5"
+  OLD_CAPI_UPGRADE_VERSION: "v1.7.5"
+  LATEST_CAPI_UPGRADE_VERSION: "v1.8.1"
   OLD_PROVIDER_UPGRADE_VERSION: "v1.15.3"
   LATEST_PROVIDER_UPGRADE_VERSION: "v1.16.0"
   OLD_CAAPH_UPGRADE_VERSION: "v0.1.0-alpha.10"
diff --git a/test/e2e/data/shared/v1beta1/metadata.yaml b/test/e2e/data/shared/v1beta1/metadata.yaml
index 6924bf41be5..bd042aefa4d 100644
--- a/test/e2e/data/shared/v1beta1/metadata.yaml
+++ b/test/e2e/data/shared/v1beta1/metadata.yaml
@@ -1,6 +1,9 @@
 apiVersion: clusterctl.cluster.x-k8s.io/v1alpha3
 kind: Metadata
 releaseSeries:
+  - major: 1
+    minor: 8
+    contract: v1beta1
   - major: 1
     minor: 7
     contract: v1beta1