Don't use the last-applied-configuration annotation for CRDs

CHANGELOG.md

@@ -1,5 +1,6 @@
 ## Unreleased
-(None)
+
+- Don't use the last-applied-configuration annotation for CRDs (https://github.com/pulumi/pulumi-kubernetes/pull/1882)
 
 ## 3.19.0 (May 3, 2022)
 

provider/pkg/provider/provider.go

@@ -2575,15 +2575,23 @@ func (k *kubeProvider) tryServerSidePatch(oldInputs, newInputs *unstructured.Uns
 }
 
 func (k *kubeProvider) withLastAppliedConfig(config *unstructured.Unstructured) (*unstructured.Unstructured, error) {
-	if k.enableReplaceCRD && clients.IsCRD(config) {
-		// Skip last-applied-config annotation when CRD replacement is enabled.
-		return config, nil
-	}
 	if k.supportsDryRun(config.GroupVersionKind()) {
 		// Skip last-applied-config annotation if the resource supports server-side apply.
 		return config, nil
 	}
 
+	// CRDs are updated using a separate mechanism, so skip the last-applied-configuration annotation, and delete it
+	// if it was present from a previous update.
+	if clients.IsCRD(config) {
+		// Deep copy the config before returning.
+		config = config.DeepCopy()
+
+		annotations := getAnnotations(config)
+		delete(annotations, lastAppliedConfigKey)
+		config.SetAnnotations(annotations)
+		return config, nil
+	}
+
 	// Serialize the inputs and add the last-applied-configuration annotation.
 	marshaled, err := config.MarshalJSON()
 	if err != nil {
@@ -2594,7 +2602,6 @@ func (k *kubeProvider) withLastAppliedConfig(config *unstructured.Unstructured)
 	config = config.DeepCopy()
 
 	annotations := getAnnotations(config)
-
 	annotations[lastAppliedConfigKey] = string(marshaled)
 	config.SetAnnotations(annotations)
 	return config, nil