diff --git a/package/Dockerfile b/package/Dockerfile
index 12657b56583..af67184f126 100644
--- a/package/Dockerfile
+++ b/package/Dockerfile
@@ -91,7 +91,7 @@ ENV CATTLE_WINS_AGENT_UNINSTALL_SCRIPT https://raw.githubusercontent.com/rancher
 ENV CATTLE_WINS_AGENT_UPGRADE_IMAGE rancher/wins:${CATTLE_WINS_AGENT_VERSION}
 ENV CATTLE_CSI_PROXY_AGENT_VERSION v1.1.3
 # make sure the CATTLE_SYSTEM_AGENT_VERSION is consistent with tests/v2/codecoverage/package/Dockerfile
-ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.9
+ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.10-rc.1
 ENV CATTLE_SYSTEM_AGENT_DOWNLOAD_PREFIX https://github.com/rancher/system-agent/releases/download
 ENV CATTLE_SYSTEM_AGENT_UPGRADE_IMAGE rancher/system-agent:${CATTLE_SYSTEM_AGENT_VERSION}-suc
 ENV CATTLE_SYSTEM_AGENT_INSTALLER_IMAGE rancher/system-agent-installer-
diff --git a/pkg/capr/planner/planner.go b/pkg/capr/planner/planner.go
index 9cc7051e018..395d37fa73c 100644
--- a/pkg/capr/planner/planner.go
+++ b/pkg/capr/planner/planner.go
@@ -1091,8 +1091,7 @@ func (p *Planner) desiredPlan(controlPlane *rkev1.RKEControlPlane, tokensSecret
 
 	if windows(entry) {
 		// We need to wait for the controlPlane to be ready before sending this plan
-		// to ensure that the initial installation has fully completed and all files have been
-		// written to disk. If all required files already have the proper ACLs, this plan will noop.
+		// to ensure that the initial installation has fully completed
 		if controlPlane.Status.Ready {
 			nodePlan.Files = append(nodePlan.Files, setPermissionsWindowsScriptFile)
 			nodePlan.Instructions = append(nodePlan.Instructions, setPermissionsWindowsScriptInstruction)
diff --git a/pkg/capr/planner/windows.go b/pkg/capr/planner/windows.go
index af244ebf685..c43daf52257 100644
--- a/pkg/capr/planner/windows.go
+++ b/pkg/capr/planner/windows.go
@@ -145,12 +145,12 @@ var (
 	setPermissionsWindowsScriptFile = plan.File{
 		Content: base64.StdEncoding.EncodeToString([]byte(
 			fmt.Sprintf(setPermissionsWindowsScript,
-				"c:\\var\\lib\\rancher\\rke2",    // RKE2 data dir
-				"c:\\var\\lib\\rancher\\agent",   // System agent dir
-				"c:\\var\\lib\\rancher\\capr"))), // Provisioning dir
+				"c:\\var\\lib\\rancher\\rke2",
+				"c:\\var\\lib\\rancher\\agent",
+				"c:\\var\\lib\\rancher\\capr"))),
 
 		Path: fmt.Sprintf(setPermissionsWindowsScriptPath,
-			"c:\\var\\lib\\rancher\\capr"), // provisioning dir
+			"c:\\var\\lib\\rancher\\capr"),
 		Dynamic: true,
 		Minor:   true,
 	}
diff --git a/pkg/settings/setting.go b/pkg/settings/setting.go
index 60c7bf4d6d4..47df127edc7 100644
--- a/pkg/settings/setting.go
+++ b/pkg/settings/setting.go
@@ -104,7 +104,7 @@ var (
 	WinsAgentVersion                    = NewSetting("wins-agent-version", "")
 	CSIProxyAgentVersion                = NewSetting("csi-proxy-agent-version", "")
 	CSIProxyAgentURL                    = NewSetting("csi-proxy-agent-url", "https://acs-mirror.azureedge.net/csi-proxy/%[1]s/binaries/csi-proxy-%[1]s.tar.gz")
-	SystemAgentInstallScript            = NewSetting("system-agent-install-script", "https://github.com/rancher/system-agent/releases/download/v0.3.9/install.sh") // To ensure consistency between SystemAgentInstallScript default value and CATTLE_SYSTEM_AGENT_INSTALL_SCRIPT to utilize the local system-agent-install.sh script when both values are equal.
+	SystemAgentInstallScript            = NewSetting("system-agent-install-script", "https://github.com/rancher/system-agent/releases/download/v0.3.10-rc.1/install.sh") // To ensure consistency between SystemAgentInstallScript default value and CATTLE_SYSTEM_AGENT_INSTALL_SCRIPT to utilize the local system-agent-install.sh script when both values are equal.
 	WinsAgentInstallScript              = NewSetting("wins-agent-install-script", "https://raw.githubusercontent.com/rancher/wins/v0.4.19-rc.1/install.ps1")
 	SystemAgentInstallerImage           = NewSetting("system-agent-installer-image", "") // Defined via environment variable
 	SystemAgentUpgradeImage             = NewSetting("system-agent-upgrade-image", "")   // Defined via environment variable
diff --git a/tests/v2/codecoverage/package/Dockerfile b/tests/v2/codecoverage/package/Dockerfile
index 7719947eebd..44649004b94 100644
--- a/tests/v2/codecoverage/package/Dockerfile
+++ b/tests/v2/codecoverage/package/Dockerfile
@@ -73,7 +73,7 @@ ENV CATTLE_WINS_AGENT_UNINSTALL_SCRIPT https://raw.githubusercontent.com/rancher
 ENV CATTLE_WINS_AGENT_UPGRADE_IMAGE rancher/wins:${CATTLE_WINS_AGENT_VERSION}
 ENV CATTLE_CSI_PROXY_AGENT_VERSION v1.1.3
 # make sure the CATTLE_SYSTEM_AGENT_VERSION is consistent with tests/v2/codecoverage/package/Dockerfile
-ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.9
+ENV CATTLE_SYSTEM_AGENT_VERSION v0.3.10-rc.1
 ENV CATTLE_SYSTEM_AGENT_DOWNLOAD_PREFIX https://github.com/rancher/system-agent/releases/download
 ENV CATTLE_SYSTEM_AGENT_UPGRADE_IMAGE rancher/system-agent:${CATTLE_SYSTEM_AGENT_VERSION}-suc
 ENV CATTLE_SYSTEM_AGENT_INSTALLER_IMAGE rancher/system-agent-installer-