diff --git a/.github/workflows/python-prerelease.yml b/.github/workflows/python-prerelease.yml
index de124871d9..4e10594920 100644
--- a/.github/workflows/python-prerelease.yml
+++ b/.github/workflows/python-prerelease.yml
@@ -6,7 +6,7 @@ on:
       - "v*.rc*"
 
 jobs:
-  test_on_transformers:
+  trigger_rc_testing:
     runs-on: ubuntu-latest
 
     strategy:
@@ -32,6 +32,15 @@ jobs:
           git config user.name "Hugging Face Bot (RC Testing)"
           git config user.email "bot@huggingface.co"
 
+      - name: Wait for prerelease to be out on PyPI
+        run: |
+          VERSION=${{ steps.get-version.outputs.VERSION }}
+          echo "Waiting for huggingface-hub==${VERSION} to be available on PyPI"
+          while ! pip install huggingface-hub==${VERSION}; do
+            echo "huggingface-hub==${VERSION} not available yet, retrying in 15s"
+            sleep 15
+          done
+
       - name: Create test branch and update dependencies
         id: create-pr
         run: |
@@ -43,21 +52,25 @@ jobs:
           git checkout -b $BRANCH_NAME
 
           # Update dependencies using sed
-          sed -i -E 's/"huggingface-hub>=0.*"/"huggingface-hub==${VERSION}"/' setup.py
+          sed -i -E "s/\"huggingface-hub>=0.*\"/\"huggingface-hub==${VERSION}\"/" setup.py
           git add setup.py
 
           # Only if the target repo is transformers
           if [ "${{ matrix.target-repo }}" = "transformers" ]; then
-            sed -i -E 's/"huggingface-hub>=0.*"/"huggingface-hub==${VERSION}"/' src/transformers/dependency_versions_table.py
+            sed -i -E "s/\"huggingface-hub>=0.*\"/\"huggingface-hub==${VERSION}\"/" src/transformers/dependency_versions_table.py
             git add src/transformers/dependency_versions_table.py
           fi
 
           # Only if the target repo is diffusers
           if [ "${{ matrix.target-repo }}" = "diffusers" ]; then
-            sed -i -E 's/"huggingface-hub":.*/"huggingface-hub": "huggingface-hub==${VERSION}",/' src/diffusers/dependency_versions_table.py
+            sed -i -E "s/\"huggingface-hub\":.*/\"huggingface-hub\": \"huggingface-hub==${VERSION}\",/" src/diffusers/dependency_versions_table.py
             git add src/diffusers/dependency_versions_table.py
           fi
 
+          # Any line with `uv pip install --prerelease=allow` in the `.github/` folder must be updated with `--prerelease=allow` flag
+          find .github/workflows/ -type f -exec sed -i 's/uv pip install /uv pip install --prerelease=allow /g' {} +
+          git add .github/workflows/
+
           # Commit and push changes
           git --no-pager diff --staged
           git commit -m "Test hfh ${VERSION}"
@@ -67,4 +80,4 @@ jobs:
         run: |
           VERSION=${{ steps.get-version.outputs.VERSION }}
           echo "https://github.com/huggingface/${{ matrix.target-repo }}/actions"
-          echo "https://github.com/huggingface/${{ matrix.target-repo }}/compare/main...ci-test-huggingface-hub-${VERSION}"
+          echo "https://github.com/huggingface/${{ matrix.target-repo }}/compare/main...ci-test-huggingface-hub-${VERSION}"
\ No newline at end of file
diff --git a/setup.py b/setup.py
index 9de62223c9..d0a0e3ce49 100644
--- a/setup.py
+++ b/setup.py
@@ -54,6 +54,7 @@ def get_version() -> str:
     "tensorflow",
     "keras<3.0",
 ]
+
 extras["hf_xet"] = ["hf_xet"]
 
 extras["testing"] = (
diff --git a/src/huggingface_hub/_inference_endpoints.py b/src/huggingface_hub/_inference_endpoints.py
index ad5c34ad31..37733fef1b 100644
--- a/src/huggingface_hub/_inference_endpoints.py
+++ b/src/huggingface_hub/_inference_endpoints.py
@@ -207,16 +207,21 @@ def wait(self, timeout: Optional[int] = None, refresh_every: int = 5) -> "Infere
 
         start = time.time()
         while True:
-            if self.url is not None:
-                # Means the URL is provisioned => check if the endpoint is reachable
-                response = get_session().get(self.url, headers=self._api._build_hf_headers(token=self._token))
-                if response.status_code == 200:
-                    logger.info("Inference Endpoint is ready to be used.")
-                    return self
             if self.status == InferenceEndpointStatus.FAILED:
                 raise InferenceEndpointError(
                     f"Inference Endpoint {self.name} failed to deploy. Please check the logs for more information."
                 )
+            if self.status == InferenceEndpointStatus.UPDATE_FAILED:
+                raise InferenceEndpointError(
+                    f"Inference Endpoint {self.name} failed to update. Please check the logs for more information."
+                )
+            if self.status == InferenceEndpointStatus.RUNNING and self.url is not None:
+                # Verify the endpoint is actually reachable
+                response = get_session().get(self.url, headers=self._api._build_hf_headers(token=self._token))
+                if response.status_code == 200:
+                    logger.info("Inference Endpoint is ready to be used.")
+                    return self
+
             if timeout is not None:
                 if time.time() - start > timeout:
                     raise InferenceEndpointTimeoutError("Timeout while waiting for Inference Endpoint to be deployed.")
diff --git a/src/huggingface_hub/_upload_large_folder.py b/src/huggingface_hub/_upload_large_folder.py
index a736e7562a..c925a31ff5 100644
--- a/src/huggingface_hub/_upload_large_folder.py
+++ b/src/huggingface_hub/_upload_large_folder.py
@@ -25,6 +25,7 @@
 from pathlib import Path
 from threading import Lock
 from typing import TYPE_CHECKING, List, Optional, Tuple, Union
+from urllib.parse import quote
 
 from . import constants
 from ._commit_api import CommitOperationAdd, UploadInfo, _fetch_upload_modes
@@ -497,7 +498,7 @@ def _get_upload_mode(items: List[JOB_ITEM_T], api: "HfApi", repo_id: str, repo_t
         repo_type=repo_type,
         repo_id=repo_id,
         headers=api._build_hf_headers(),
-        revision=revision,
+        revision=quote(revision, safe=""),
     )
     for item, addition in zip(items, additions):
         paths, metadata = item
diff --git a/tests/test_inference_endpoints.py b/tests/test_inference_endpoints.py
index 6b44466338..265b700c0f 100644
--- a/tests/test_inference_endpoints.py
+++ b/tests/test_inference_endpoints.py
@@ -1,5 +1,6 @@
 from datetime import datetime, timezone
-from unittest.mock import Mock, patch
+from itertools import chain, repeat
+from unittest.mock import MagicMock, Mock, patch
 
 import pytest
 
@@ -109,6 +110,39 @@
         "targetReplica": 1,
     },
 }
+# added for test_wait_update function
+MOCK_UPDATE = {
+    "name": "my-endpoint-name",
+    "type": "protected",
+    "accountId": None,
+    "provider": {"vendor": "aws", "region": "us-east-1"},
+    "compute": {
+        "accelerator": "cpu",
+        "instanceType": "intel-icl",
+        "instanceSize": "x2",
+        "scaling": {"minReplica": 0, "maxReplica": 1},
+    },
+    "model": {
+        "repository": "gpt2",
+        "revision": "11c5a3d5811f50298f278a704980280950aedb10",
+        "task": "text-generation",
+        "framework": "pytorch",
+        "image": {"huggingface": {}},
+        "secret": {"token": "my-token"},
+    },
+    "status": {
+        "createdAt": "2023-10-26T12:41:53.263078506Z",
+        "createdBy": {"id": "6273f303f6d63a28483fde12", "name": "Wauplin"},
+        "updatedAt": "2023-10-26T12:41:53.263079138Z",
+        "updatedBy": {"id": "6273f303f6d63a28483fde12", "name": "Wauplin"},
+        "private": None,
+        "state": "updating",
+        "url": "https://vksrvs8pc1xnifhq.us-east-1.aws.endpoints.huggingface.cloud",
+        "message": "Endpoint waiting for the update",
+        "readyReplica": 0,
+        "targetReplica": 1,
+    },
+}
 
 
 def test_from_raw_initialization():
@@ -189,7 +223,7 @@ def test_fetch(mock_get: Mock):
 @patch("huggingface_hub._inference_endpoints.get_session")
 @patch("huggingface_hub.hf_api.HfApi.get_inference_endpoint")
 def test_wait_until_running(mock_get: Mock, mock_session: Mock):
-    """Test waits waits until the endpoint is ready."""
+    """Test waits until the endpoint is ready."""
     endpoint = InferenceEndpoint.from_raw(MOCK_INITIALIZING, namespace="foo")
 
     mock_get.side_effect = [
@@ -244,6 +278,27 @@ def test_wait_failed(mock_get: Mock):
         endpoint.wait(refresh_every=0.001)
 
 
+@patch("huggingface_hub.hf_api.HfApi.get_inference_endpoint")
+@patch("huggingface_hub._inference_endpoints.get_session")
+def test_wait_update(mock_get_session, mock_get_inference_endpoint):
+    """Test that wait() returns when the endpoint transitions to running."""
+    endpoint = InferenceEndpoint.from_raw(MOCK_INITIALIZING, namespace="foo")
+    # Create an iterator that yields three MOCK_UPDATE responses,and then infinitely yields MOCK_RUNNING responses.
+    responses = chain(
+        [InferenceEndpoint.from_raw(MOCK_UPDATE, namespace="foo")] * 3,
+        repeat(InferenceEndpoint.from_raw(MOCK_RUNNING, namespace="foo")),
+    )
+    mock_get_inference_endpoint.side_effect = lambda *args, **kwargs: next(responses)
+
+    # Patch the get_session().get() call to always return a fake response with status_code 200.
+    fake_response = MagicMock()
+    fake_response.status_code = 200
+    mock_get_session.return_value.get.return_value = fake_response
+
+    endpoint.wait(refresh_every=0.05)
+    assert endpoint.status == "running"
+
+
 @patch("huggingface_hub.hf_api.HfApi.pause_inference_endpoint")
 def test_pause(mock: Mock):
     """Test `pause` calls the correct alias."""