diff --git a/controllers/workspace/devworkspace_controller.go b/controllers/workspace/devworkspace_controller.go
index 84a257f82..0026888c0 100644
--- a/controllers/workspace/devworkspace_controller.go
+++ b/controllers/workspace/devworkspace_controller.go
@@ -27,7 +27,6 @@ import (
 	"github.com/devfile/devworkspace-operator/controllers/workspace/metrics"
 	"github.com/devfile/devworkspace-operator/pkg/common"
 	"github.com/devfile/devworkspace-operator/pkg/conditions"
-	"github.com/devfile/devworkspace-operator/pkg/config"
 	wkspConfig "github.com/devfile/devworkspace-operator/pkg/config"
 	"github.com/devfile/devworkspace-operator/pkg/constants"
 	"github.com/devfile/devworkspace-operator/pkg/library/annotate"
@@ -123,9 +122,10 @@ func (r *DevWorkspaceReconciler) Reconcile(ctx context.Context, req ctrl.Request
 		return reconcile.Result{}, err
 	}
 
+	reconcileStatus := currentStatus{}
 	config, err := wkspConfig.ResolveConfigForWorkspace(rawWorkspace, clusterAPI.Client)
 	if err != nil {
-		reqLogger.Error(err, "Error applying external DevWorkspace-Operator configuration")
+		reconcileStatus.setConditionTrue(conditions.DevWorkspaceWarning, fmt.Sprint("Error applying external DevWorkspace-Operator configuration: ", err.Error()))
 		config = wkspConfig.GetGlobalConfig()
 	}
 	configString := wkspConfig.GetCurrentConfigString(config)
@@ -208,7 +208,7 @@ func (r *DevWorkspaceReconciler) Reconcile(ctx context.Context, req ctrl.Request
 	}
 
 	// Prepare handling workspace status and condition
-	reconcileStatus := currentStatus{phase: dw.DevWorkspaceStatusStarting}
+	reconcileStatus.phase = dw.DevWorkspaceStatusStarting
 	reconcileStatus.setConditionTrue(conditions.Started, "DevWorkspace is starting")
 	clusterWorkspace := &common.DevWorkspaceWithConfig{}
 	clusterWorkspace.DevWorkspace = workspace.DevWorkspace.DeepCopy()
@@ -265,8 +265,6 @@ func (r *DevWorkspaceReconciler) Reconcile(ctx context.Context, req ctrl.Request
 	}
 	if warnings != nil {
 		reconcileStatus.setConditionTrue(conditions.DevWorkspaceWarning, flatten.FormatVariablesWarning(warnings))
-	} else {
-		reconcileStatus.setConditionFalse(conditions.DevWorkspaceWarning, "No warnings in processing DevWorkspace")
 	}
 	workspace.Spec.Template = *flattenedWorkspace
 	reconcileStatus.setConditionTrue(conditions.DevWorkspaceResolved, "Resolved plugins and parents from DevWorkspace")
@@ -692,7 +690,7 @@ func (r *DevWorkspaceReconciler) dwPVCHandler(obj client.Object) []reconcile.Req
 
 	// TODO: Label PVCs used for workspace storage so that they can be cleaned up if non-default name is used.
 	// Otherwise, check if common PVC is deleted to make sure all DevWorkspaces see it happen
-	if obj.GetName() != config.GetGlobalConfig().Workspace.PVCName || obj.GetDeletionTimestamp() == nil {
+	if obj.GetName() != wkspConfig.GetGlobalConfig().Workspace.PVCName || obj.GetDeletionTimestamp() == nil {
 		// We're looking for a deleted common PVC
 		return []reconcile.Request{}
 	}
@@ -718,7 +716,7 @@ func (r *DevWorkspaceReconciler) dwPVCHandler(obj client.Object) []reconcile.Req
 func (r *DevWorkspaceReconciler) SetupWithManager(mgr ctrl.Manager) error {
 	setupHttpClients()
 
-	maxConcurrentReconciles, err := config.GetMaxConcurrentReconciles()
+	maxConcurrentReconciles, err := wkspConfig.GetMaxConcurrentReconciles()
 	if err != nil {
 		return err
 	}
@@ -727,7 +725,7 @@ func (r *DevWorkspaceReconciler) SetupWithManager(mgr ctrl.Manager) error {
 		return []reconcile.Request{}
 	}
 
-	var configWatcher builder.WatchesOption = builder.WithPredicates(config.Predicates())
+	var configWatcher builder.WatchesOption = builder.WithPredicates(wkspConfig.Predicates())
 
 	// TODO: Set up indexing https://book.kubebuilder.io/cronjob-tutorial/controller-implementation.html#setup
 	return ctrl.NewControllerManagedBy(mgr).