diff --git a/.golangci.yml b/.golangci.yml
index ce5172cf9c..7aa1a7f247 100644
--- a/.golangci.yml
+++ b/.golangci.yml
@@ -200,6 +200,9 @@ linters:
       - linters:
           - staticcheck
         text: 'SA1019: .*\.Deprecated\.V1Beta1.* is deprecated'
+      - linters:
+          - staticcheck
+        text: 'SA1019: clusterv1\.(Condition|Conditions|ConditionSeverity|ConditionType) is deprecated'
         # Excludes for controller-runtime deprecations that we should migrate away from sooner or later
       - linters:
           - staticcheck
diff --git a/Makefile b/Makefile
index ffb181ab57..df21585b77 100644
--- a/Makefile
+++ b/Makefile
@@ -194,7 +194,7 @@ IMPORT_BOSS_VER := v0.28.1
 IMPORT_BOSS := $(abspath $(TOOLS_BIN_DIR)/$(IMPORT_BOSS_BIN))
 IMPORT_BOSS_PKG := k8s.io/code-generator/cmd/import-boss
 
-CAPI_HACK_TOOLS_VER := 4d332f8b6351605ff458fdd4c1e52f07a77d4f86 # Note: this the commit ID of CAPI main from 12.01.2026.
+CAPI_HACK_TOOLS_VER := b1f040ff2b3dc1ea9851984a8c330dfda8b7a541 # Note: this the commit ID of CAPI main from 15.01.2026.
 
 BOSKOSCTL_BIN := boskosctl
 BOSKOSCTL := $(abspath $(TOOLS_BIN_DIR)/$(BOSKOSCTL_BIN))
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
index 92e83e47b7..42b545e66f 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusteridentities.yaml
@@ -406,8 +406,10 @@ spec:
 
                           Deprecated: This field is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                         items:
-                          description: Condition defines an observation of a Cluster
-                            API resource operational state.
+                          description: |-
+                            Condition defines an observation of a Cluster API resource operational state.
+
+                            Deprecated: This type is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                           properties:
                             lastTransitionTime:
                               description: |-
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
index ae0f551df2..efd201ee0b 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vsphereclusters.yaml
@@ -612,8 +612,10 @@ spec:
 
                           Deprecated: This field is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                         items:
-                          description: Condition defines an observation of a Cluster
-                            API resource operational state.
+                          description: |-
+                            Condition defines an observation of a Cluster API resource operational state.
+
+                            Deprecated: This type is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                           properties:
                             lastTransitionTime:
                               description: |-
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
index 7a48b9df94..71a28b834f 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheredeploymentzones.yaml
@@ -354,8 +354,10 @@ spec:
 
                           Deprecated: This field is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                         items:
-                          description: Condition defines an observation of a Cluster
-                            API resource operational state.
+                          description: |-
+                            Condition defines an observation of a Cluster API resource operational state.
+
+                            Deprecated: This type is deprecated and is going to be removed when support for v1beta1 will be dropped. Please see https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20240916-improve-status-in-CAPI-resources.md for more details.
                           properties:
                             lastTransitionTime:
                               description: |-
diff --git a/go.mod b/go.mod
index 50a82703b2..0653378303 100644
--- a/go.mod
+++ b/go.mod
@@ -2,7 +2,7 @@ module sigs.k8s.io/cluster-api-provider-vsphere
 
 go 1.25.0
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d
 
 require (
 	github.com/vmware-tanzu/net-operator-api v0.0.0-20250826165015-90a4bb21727b
diff --git a/go.sum b/go.sum
index c51665b0c6..f0c157711e 100644
--- a/go.sum
+++ b/go.sum
@@ -299,8 +299,8 @@ k8s.io/utils v0.0.0-20251002143259-bc988d571ff4 h1:SjGebBtkBqHFOli+05xYbK8YF1Dzk
 k8s.io/utils v0.0.0-20251002143259-bc988d571ff4/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.31.2 h1:jpcvIRr3GLoUoEKRkHKSmGjxb6lWwrBlJsXc+eUYQHM=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.31.2/go.mod h1:Ve9uj1L+deCXFrPOk1LpFXqTg7LCFzFso6PA48q/XZw=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb h1:re4FdZQ5WZQoY7TBAPWa/o+AiL8M6/HNpQC0qfuIN+g=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d h1:MGkQfYdnqRFj9V1Bhh4fxtldHjpZWZZW0BKj7UYvWSY=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31 h1:yXyc4VxJYyDBZNZ/A8wOYxiXDTiG+ec2s6zGOz71vtg=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31/go.mod h1:DBOIr9NsprUqCZ1ZhsuJ0wAnQSIxY/C6VjZbmLgw0j0=
 sigs.k8s.io/json v0.0.0-20250730193827-2d320260d730 h1:IpInykpT6ceI+QxKBbEflcR5EXP7sU1kvOlxwZh5txg=
diff --git a/packaging/go.mod b/packaging/go.mod
index 76cb9bc31c..9a0d7b2509 100644
--- a/packaging/go.mod
+++ b/packaging/go.mod
@@ -2,7 +2,7 @@ module sigs.k8s.io/cluster-api-provider-vsphere/packaging
 
 go 1.25.0
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d
 
 replace sigs.k8s.io/cluster-api-provider-vsphere => ../
 
diff --git a/packaging/go.sum b/packaging/go.sum
index 5b5b6200c9..b0908d59c2 100644
--- a/packaging/go.sum
+++ b/packaging/go.sum
@@ -207,8 +207,8 @@ k8s.io/kube-openapi v0.0.0-20250910181357-589584f1c912 h1:Y3gxNAuB0OBLImH611+UDZ
 k8s.io/kube-openapi v0.0.0-20250910181357-589584f1c912/go.mod h1:kdmbQkyfwUagLfXIad1y2TdrjPFWp2Q89B3qkRwf/pQ=
 k8s.io/utils v0.0.0-20251002143259-bc988d571ff4 h1:SjGebBtkBqHFOli+05xYbK8YF1Dzkbzn+gDM4X9T4Ck=
 k8s.io/utils v0.0.0-20251002143259-bc988d571ff4/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb h1:re4FdZQ5WZQoY7TBAPWa/o+AiL8M6/HNpQC0qfuIN+g=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d h1:MGkQfYdnqRFj9V1Bhh4fxtldHjpZWZZW0BKj7UYvWSY=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31 h1:yXyc4VxJYyDBZNZ/A8wOYxiXDTiG+ec2s6zGOz71vtg=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31/go.mod h1:DBOIr9NsprUqCZ1ZhsuJ0wAnQSIxY/C6VjZbmLgw0j0=
 sigs.k8s.io/json v0.0.0-20250730193827-2d320260d730 h1:IpInykpT6ceI+QxKBbEflcR5EXP7sU1kvOlxwZh5txg=
diff --git a/test/e2e/config/vsphere.yaml b/test/e2e/config/vsphere.yaml
index 449b703f24..8bbac72157 100644
--- a/test/e2e/config/vsphere.yaml
+++ b/test/e2e/config/vsphere.yaml
@@ -27,7 +27,7 @@ providers:
     type: CoreProvider
     versions:
       - name: "v1.13.99"
-        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260112/core-components.yaml"
+        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260116/core-components.yaml"
         type: "url"
         contract: v1beta2
         files:
@@ -67,7 +67,7 @@ providers:
     type: BootstrapProvider
     versions:
       - name: "v1.13.99"
-        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260112/bootstrap-components.yaml"
+        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260116/bootstrap-components.yaml"
         type: "url"
         contract: v1beta2
         files:
@@ -107,7 +107,7 @@ providers:
     type: ControlPlaneProvider
     versions:
       - name: "v1.13.99"
-        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260112/control-plane-components.yaml"
+        value: "https://storage.googleapis.com/k8s-staging-cluster-api/components/nightly_main_20260116/control-plane-components.yaml"
         type: "url"
         contract: v1beta2
         files:
diff --git a/test/extension/handlers/topologymutation/handler.go b/test/extension/handlers/topologymutation/handler.go
index 48fa85ec90..ddda529e59 100644
--- a/test/extension/handlers/topologymutation/handler.go
+++ b/test/extension/handlers/topologymutation/handler.go
@@ -32,7 +32,6 @@ import (
 	"k8s.io/apimachinery/pkg/runtime/serializer"
 	bootstrapv1 "sigs.k8s.io/cluster-api/api/bootstrap/kubeadm/v1beta2"
 	controlplanev1 "sigs.k8s.io/cluster-api/api/controlplane/kubeadm/v1beta2"
-	clusterv1beta1 "sigs.k8s.io/cluster-api/api/core/v1beta1"
 	runtimehooksv1 "sigs.k8s.io/cluster-api/api/runtime/hooks/v1alpha1"
 	"sigs.k8s.io/cluster-api/exp/runtime/topologymutation"
 	ctrl "sigs.k8s.io/controller-runtime"
@@ -390,18 +389,6 @@ func (h *ExtensionHandlers) DiscoverVariables(ctx context.Context, req *runtimeh
 	log := ctrl.LoggerFrom(ctx)
 	log.Info("DiscoverVariables called")
 
-	vars := []clusterv1beta1.ClusterClassVariable{}
-
-	for _, in := range clusterclass.GetClusterClassVariables(req.Settings["testMode"] == "govmomi") {
-		out := clusterv1beta1.ClusterClassVariable{}
-		if err := clusterv1beta1.Convert_v1beta2_ClusterClassVariable_To_v1beta1_ClusterClassVariable(&in, &out, nil); err != nil {
-			resp.Status = runtimehooksv1.ResponseStatusFailure
-			resp.Message = fmt.Sprintf("Failed to Convert ClusterClass variable %q to v1beta1", in.Name)
-			return
-		}
-		vars = append(vars, out)
-	}
-
 	resp.Status = runtimehooksv1.ResponseStatusSuccess
-	resp.Variables = vars
+	resp.Variables = clusterclass.GetClusterClassVariables(req.Settings["testMode"] == "govmomi")
 }
diff --git a/test/go.mod b/test/go.mod
index 75275a435d..cc2ce93781 100644
--- a/test/go.mod
+++ b/test/go.mod
@@ -2,9 +2,9 @@ module sigs.k8s.io/cluster-api-provider-vsphere/test
 
 go 1.25.0
 
-replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb
+replace sigs.k8s.io/cluster-api => sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d
 
-replace sigs.k8s.io/cluster-api/test => sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260114094338-a7d169df81fb
+replace sigs.k8s.io/cluster-api/test => sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d
 
 replace sigs.k8s.io/cluster-api-provider-vsphere => ../
 
diff --git a/test/go.sum b/test/go.sum
index 6607280b49..a7ec01637a 100644
--- a/test/go.sum
+++ b/test/go.sum
@@ -483,10 +483,10 @@ k8s.io/utils v0.0.0-20251002143259-bc988d571ff4 h1:SjGebBtkBqHFOli+05xYbK8YF1Dzk
 k8s.io/utils v0.0.0-20251002143259-bc988d571ff4/go.mod h1:OLgZIPagt7ERELqWJFomSt595RzquPNLL48iOWgYOg0=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.31.2 h1:jpcvIRr3GLoUoEKRkHKSmGjxb6lWwrBlJsXc+eUYQHM=
 sigs.k8s.io/apiserver-network-proxy/konnectivity-client v0.31.2/go.mod h1:Ve9uj1L+deCXFrPOk1LpFXqTg7LCFzFso6PA48q/XZw=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb h1:re4FdZQ5WZQoY7TBAPWa/o+AiL8M6/HNpQC0qfuIN+g=
-sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260114094338-a7d169df81fb/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
-sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260114094338-a7d169df81fb h1:Askwzrq92vIBGMfuCGt5YsybuVqHk1XvGNK+c+4NSdg=
-sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260114094338-a7d169df81fb/go.mod h1:u+WWyecZJMqvzHK+VpzxMIcq732nlNCAhoTDCHU5ry8=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d h1:MGkQfYdnqRFj9V1Bhh4fxtldHjpZWZZW0BKj7UYvWSY=
+sigs.k8s.io/cluster-api v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d/go.mod h1:HjETkXCc5TpCavgj5sOd0ar1AZVVrYnkgKwmdM4sJJw=
+sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d h1:baN1h8Jz12FdIV6DGn/cWSXKlHDaCF06nqmCRZb6pEc=
+sigs.k8s.io/cluster-api/test v1.12.0-rc.0.0.20260115174141-b1f040ff2b3d/go.mod h1:u+WWyecZJMqvzHK+VpzxMIcq732nlNCAhoTDCHU5ry8=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31 h1:yXyc4VxJYyDBZNZ/A8wOYxiXDTiG+ec2s6zGOz71vtg=
 sigs.k8s.io/controller-runtime v0.22.1-0.20251219095433-f28fd58a1e31/go.mod h1:DBOIr9NsprUqCZ1ZhsuJ0wAnQSIxY/C6VjZbmLgw0j0=
 sigs.k8s.io/json v0.0.0-20250730193827-2d320260d730 h1:IpInykpT6ceI+QxKBbEflcR5EXP7sU1kvOlxwZh5txg=