diff --git a/install/0000_80_machine-config-operator_00_clusterreader_clusterrole.yaml b/install/0000_80_machine-config-operator_00_clusterreader_clusterrole.yaml
index cc8b428e00..fc831ee40f 100644
--- a/install/0000_80_machine-config-operator_00_clusterreader_clusterrole.yaml
+++ b/install/0000_80_machine-config-operator_00_clusterreader_clusterrole.yaml
@@ -33,6 +33,17 @@ rules:
       - get
       - list
       - watch
+  - apiGroups:
+      - machineconfiguration.openshift.io
+    resources:
+      - machineconfignodes
+      - machineconfignodes/status
+    verbs:
+      - get
+      - list
+      - watch
+      - delete
+      - create
   - apiGroups:
       - config.openshift.io
     resources: 
diff --git a/pkg/operator/sync.go b/pkg/operator/sync.go
index 6895ebf78d..668e646557 100644
--- a/pkg/operator/sync.go
+++ b/pkg/operator/sync.go
@@ -48,6 +48,7 @@ import (
 	templatectrl "github.com/openshift/machine-config-operator/pkg/controller/template"
 	daemonconsts "github.com/openshift/machine-config-operator/pkg/daemon/constants"
 	"github.com/openshift/machine-config-operator/pkg/server"
+	"github.com/openshift/machine-config-operator/pkg/upgrademonitor"
 	"github.com/openshift/machine-config-operator/pkg/version"
 	autoscalingv1 "k8s.io/api/autoscaling/v1"
 )
@@ -710,7 +711,14 @@ func (optr *Operator) syncMachineConfigNodes(_ *renderConfig) error {
 	if err != nil {
 		return err
 	}
+	mcns, err := optr.mcNodeLister.List(labels.Everything())
+	if err != nil {
+		return err
+	}
 	for _, node := range nodes {
+		if node.Status.Phase == corev1.NodePending || node.Status.Phase == corev1.NodePhase("Provisioning") {
+			continue
+		}
 		var pool string
 		var ok bool
 		if _, ok = node.Labels["node-role.kubernetes.io/worker"]; ok {
@@ -744,10 +752,31 @@ func (optr *Operator) syncMachineConfigNodes(_ *renderConfig) error {
 			return err
 		}
 		p := mcoResourceRead.ReadMachineConfigNodeV1OrDie(mcsBytes)
-		_, _, err = mcoResourceApply.ApplyMachineConfigNode(optr.client.MachineconfigurationV1alpha1(), p)
+		mcn, _, err := mcoResourceApply.ApplyMachineConfigNode(optr.client.MachineconfigurationV1alpha1(), p)
 		if err != nil {
 			return err
 		}
+		// if this is the first time we are applying the MCN and the node is ready, set the config version probably
+		if mcn.Spec.ConfigVersion.Desired == "NotYetSet" {
+			err = upgrademonitor.GenerateAndApplyMachineConfigNodeSpec(optr.fgAccessor, pool, node, optr.client)
+			if err != nil {
+				klog.Errorf("Error making MCN spec for Update Compatible: %w", err)
+			}
+		}
+
+	}
+	for _, mcn := range mcns {
+		found := false
+		for _, node := range nodes {
+			if node.Name == mcn.Name {
+				found = true
+				break
+			}
+		}
+		if !found {
+			klog.Infof("Node %s has been removed, deleting associated MCN", mcn.Name)
+			optr.client.MachineconfigurationV1alpha1().MachineConfigNodes().Delete(context.TODO(), mcn.Name, metav1.DeleteOptions{})
+		}
 	}
 	return nil
 }
diff --git a/pkg/upgrademonitor/upgrade_monitor.go b/pkg/upgrademonitor/upgrade_monitor.go
index 98193ddb02..dc41b0510c 100644
--- a/pkg/upgrademonitor/upgrade_monitor.go
+++ b/pkg/upgrademonitor/upgrade_monitor.go
@@ -40,6 +40,14 @@ func GenerateAndApplyMachineConfigNodes(parentCondition, childCondition *Conditi
 		return nil
 	}
 
+	var pool string
+	var ok bool
+	if _, ok = node.Labels["node-role.kubernetes.io/worker"]; ok {
+		pool = "worker"
+	} else if _, ok = node.Labels["node-role.kubernetes.io/master"]; ok {
+		pool = "master"
+	}
+
 	// get the existing MCN, or if it DNE create one below
 	mcNode, needNewMCNode := createOrGetMachineConfigNode(mcfgClient, node)
 	newMCNode := mcNode.DeepCopy()
@@ -162,9 +170,15 @@ func GenerateAndApplyMachineConfigNodes(parentCondition, childCondition *Conditi
 	}
 
 	// for now, keep spec and status aligned
-	newMCNode.Status.ConfigVersion = mcfgalphav1.MachineConfigNodeStatusMachineConfigVersion{
-		Desired: newMCNode.Status.ConfigVersion.Desired,
-		Current: node.Annotations["machineconfiguration.openshift.io/currentConfig"],
+	if node.Annotations["machineconfiguration.openshift.io/currentConfig"] != "" {
+		newMCNode.Status.ConfigVersion = mcfgalphav1.MachineConfigNodeStatusMachineConfigVersion{
+			Desired: newMCNode.Status.ConfigVersion.Desired,
+			Current: node.Annotations["machineconfiguration.openshift.io/currentConfig"],
+		}
+	} else {
+		newMCNode.Status.ConfigVersion = mcfgalphav1.MachineConfigNodeStatusMachineConfigVersion{
+			Desired: newMCNode.Status.ConfigVersion.Desired,
+		}
 	}
 	// if the update is compatible, we can set the desired to the one being used in the update
 	// this happens either if we get prepared == true OR literally any other parent condition, since if we get past prepared, then the desiredConfig is correct.
@@ -176,7 +190,10 @@ func GenerateAndApplyMachineConfigNodes(parentCondition, childCondition *Conditi
 
 	// if we do not need a new MCN, generate the apply configurations for this object
 	if !needNewMCNode {
-		statusconfigVersionApplyConfig := machineconfigurationalphav1.MachineConfigNodeStatusMachineConfigVersion().WithCurrent(newMCNode.Status.ConfigVersion.Current).WithDesired(newMCNode.Status.ConfigVersion.Desired)
+		statusconfigVersionApplyConfig := machineconfigurationalphav1.MachineConfigNodeStatusMachineConfigVersion().WithDesired(newMCNode.Status.ConfigVersion.Desired)
+		if node.Annotations["machineconfiguration.openshift.io/currentConfig"] != "" {
+			statusconfigVersionApplyConfig = statusconfigVersionApplyConfig.WithCurrent(newMCNode.Status.ConfigVersion.Current)
+		}
 		statusApplyConfig := machineconfigurationalphav1.MachineConfigNodeStatus().WithConditions(newMCNode.Status.Conditions...).WithObservedGeneration(newMCNode.Generation + 1).WithConfigVersion(statusconfigVersionApplyConfig)
 		mcnodeApplyConfig := machineconfigurationalphav1.MachineConfigNode(newMCNode.Name).WithStatus(statusApplyConfig)
 		_, err := mcfgClient.MachineconfigurationV1alpha1().MachineConfigNodes().ApplyStatus(context.TODO(), mcnodeApplyConfig, metav1.ApplyOptions{FieldManager: "machine-config-operator", Force: true})
@@ -184,16 +201,8 @@ func GenerateAndApplyMachineConfigNodes(parentCondition, childCondition *Conditi
 			klog.Errorf("Error applying MCN status: %w", err)
 			return err
 		}
-	} else {
+	} else if node.Status.Phase != corev1.NodePending && node.Status.Phase != corev1.NodePhase("Provisioning") {
 		// there are cases where we get here before the MCO has settled and applied all of the MCnodes.
-		var pool string
-		var ok bool
-		if _, ok = node.Labels["node-role.kubernetes.io/worker"]; ok {
-			pool = "worker"
-		} else if _, ok = node.Labels["node-role.kubernetes.io/master"]; ok {
-			pool = "master"
-		}
-
 		newMCNode.Spec.ConfigVersion = mcfgalphav1.MachineConfigNodeSpecMachineConfigVersion{
 			Desired: node.Annotations["machineconfiguration.openshift.io/desiredConfig"],
 		}
@@ -209,6 +218,13 @@ func GenerateAndApplyMachineConfigNodes(parentCondition, childCondition *Conditi
 			return err
 		}
 	}
+	// if this is the first time we are applying the MCN and the node is ready, set the config version probably
+	if node.Status.Phase != corev1.NodePending && node.Status.Phase != corev1.NodePhase("Provisioning") && newMCNode.Spec.ConfigVersion.Desired == "NotYetSet" {
+		err = GenerateAndApplyMachineConfigNodeSpec(fgAccessor, pool, node, mcfgClient)
+		if err != nil {
+			klog.Errorf("Error making MCN spec for Update Compatible: %w", err)
+		}
+	}
 	return nil
 }