diff --git a/CHANGELOG.unreleased.md b/CHANGELOG.unreleased.md
index 74ae8a2cd31..283fb3472f2 100644
--- a/CHANGELOG.unreleased.md
+++ b/CHANGELOG.unreleased.md
@@ -16,6 +16,7 @@
 
 - [Rolling Pool Update] Don't fail if `load-balancer` plugin is missing (Starter and Enterprise plans)
 - [Backup/Restore] Fix missing backups on Backblaze
+- [Templates] Fix "incorrect state" error when trying to delete a default template
 
 ### Packages to release
 
diff --git a/packages/xo-server/src/api/vm.mjs b/packages/xo-server/src/api/vm.mjs
index f7bc8e9b717..d4273ba0a90 100644
--- a/packages/xo-server/src/api/vm.mjs
+++ b/packages/xo-server/src/api/vm.mjs
@@ -149,7 +149,7 @@ export const create = defer(async function ($defer, params) {
   }
 
   const xapiVm = await xapi.createVm(template._xapiId, params, checkLimits)
-  $defer.onFailure(() => xapi.VM_destroy(xapiVm.$ref, true, true))
+  $defer.onFailure(() => xapi.VM_destroy(xapiVm.$ref, { deleteDisks: true, force: true, bypassBlockedOperation: true }))
 
   const vm = xapi.xo.addObject(xapiVm)
 
@@ -382,7 +382,7 @@ const delete_ = defer(async function (
     }
   })
 
-  return xapi.VM_destroy(vm._xapiRef, deleteDisks, force, forceDeleteDefaultTemplate)
+  return xapi.VM_destroy(vm._xapiRef, { deleteDisks, force, forceDeleteDefaultTemplate })
 })
 
 delete_.params = {