diff --git a/x-pack/plugins/observability_onboarding/public/components/app/system_logs/install_elastic_agent.tsx b/x-pack/plugins/observability_onboarding/public/components/app/system_logs/install_elastic_agent.tsx
index 1f84bef939f552..5eb80c9e11525f 100644
--- a/x-pack/plugins/observability_onboarding/public/components/app/system_logs/install_elastic_agent.tsx
+++ b/x-pack/plugins/observability_onboarding/public/components/app/system_logs/install_elastic_agent.tsx
@@ -41,7 +41,6 @@ export function InstallElasticAgent() {
     useState<ElasticAgentPlatform>('linux-tar');
 
   const datasetName = 'system-logs';
-  const namespace = 'default';
 
   function onBack() {
     navigateToKibanaUrl('/app/observabilityOnboarding');
@@ -84,10 +83,6 @@ export function InstallElasticAgent() {
             body: {
               name: datasetName,
               type: 'systemLogs',
-              state: {
-                datasetName,
-                namespace,
-              },
             },
           },
         });
@@ -96,26 +91,6 @@ export function InstallElasticAgent() {
     [monitoringRole?.hasPrivileges]
   );
 
-  const { status: saveOnboardingStateDataStatus } = useFetcher((callApi) => {
-    const { onboardingId } = getState();
-    if (onboardingId) {
-      return callApi(
-        'PUT /internal/observability_onboarding/flow/{onboardingId}',
-        {
-          params: {
-            path: { onboardingId },
-            body: {
-              state: {
-                datasetName,
-                namespace,
-              },
-            },
-          },
-        }
-      );
-    }
-  }, []);
-
   const { apiKeyEncoded, onboardingId } = installShipperSetup ?? getState();
 
   const { data: yamlConfig = '', status: yamlConfigStatus } = useFetcher(
@@ -133,7 +108,7 @@ export function InstallElasticAgent() {
     [
       apiKeyEncoded,
       onboardingId,
-      saveOnboardingStateDataStatus === FETCH_STATUS.SUCCESS,
+      installShipperSetupStatus === FETCH_STATUS.SUCCESS,
     ]
   );
 
diff --git a/x-pack/plugins/observability_onboarding/server/routes/logs/route.ts b/x-pack/plugins/observability_onboarding/server/routes/logs/route.ts
index 2647835032d3c9..c28c393382930c 100644
--- a/x-pack/plugins/observability_onboarding/server/routes/logs/route.ts
+++ b/x-pack/plugins/observability_onboarding/server/routes/logs/route.ts
@@ -94,13 +94,15 @@ const createFlowRoute = createObservabilityOnboardingServerRoute({
       name
     );
 
+    const generatedState =
+      type === 'systemLogs' ? { namespace: 'default' } : state;
     const savedObjectsClient = coreStart.savedObjects.getScopedClient(request);
 
     const { id } = await saveObservabilityOnboardingFlow({
       savedObjectsClient,
       observabilityOnboardingState: {
         type,
-        state: state as ObservabilityOnboardingFlow['state'],
+        state: generatedState as ObservabilityOnboardingFlow['state'],
         progress: {},
       },
     });