diff --git a/test/e2e/clusterctl_upgrade.go b/test/e2e/clusterctl_upgrade.go
index 6e21ef75fedf..65e97f4d07b9 100644
--- a/test/e2e/clusterctl_upgrade.go
+++ b/test/e2e/clusterctl_upgrade.go
@@ -447,6 +447,9 @@ func ClusterctlUpgradeSpec(ctx context.Context, inputGetter func() ClusterctlUpg
 		})
 		Expect(workloadClusterTemplate).ToNot(BeNil(), "Failed to get the cluster template")
 
+		log.Logf("Applying the cluster template yaml to the cluster in dry-run")
+		Eventually(managementClusterProxy.CreateOrUpdate(ctx, workloadClusterTemplate, framework.WithCreateOpts([]client.CreateOption{client.DryRunAll}...), framework.WithUpdateOpts([]client.UpdateOption{client.DryRunAll}...)), "1m", "10s").ShouldNot(HaveOccurred())
+
 		log.Logf("Applying the cluster template yaml to the cluster")
 		Expect(managementClusterProxy.CreateOrUpdate(ctx, workloadClusterTemplate)).To(Succeed())
 
diff --git a/test/framework/cluster_proxy.go b/test/framework/cluster_proxy.go
index 88e25f5355bf..3dc92278dc1a 100644
--- a/test/framework/cluster_proxy.go
+++ b/test/framework/cluster_proxy.go
@@ -109,6 +109,8 @@ type ClusterProxy interface {
 // createOrUpdateConfig contains options for use with CreateOrUpdate.
 type createOrUpdateConfig struct {
 	labelSelector labels.Selector
+	createOpts    []client.CreateOption
+	updateOpts    []client.UpdateOption
 }
 
 // CreateOrUpdateOption is a configuration option supplied to CreateOrUpdate.
@@ -121,6 +123,20 @@ func WithLabelSelector(labelSelector labels.Selector) CreateOrUpdateOption {
 	}
 }
 
+// WithCreateOpts allows definition of the Create options to be used in resource Create.
+func WithCreateOpts(createOpts ...client.CreateOption) CreateOrUpdateOption {
+	return func(c *createOrUpdateConfig) {
+		c.createOpts = createOpts
+	}
+}
+
+// WithUpdateOpts allows definition of the Update options to be used in resource Update.
+func WithUpdateOpts(updateOpts ...client.UpdateOption) CreateOrUpdateOption {
+	return func(c *createOrUpdateConfig) {
+		c.updateOpts = updateOpts
+	}
+}
+
 // ClusterLogCollector defines an object that can collect logs from a machine.
 type ClusterLogCollector interface {
 	// CollectMachineLog collects log from a machine.
@@ -320,7 +336,7 @@ func (p *clusterProxy) CreateOrUpdate(ctx context.Context, resources []byte, opt
 			if err := p.GetClient().Get(ctx, objectKey, existingObject); err != nil {
 				// Expected error -- if the object does not exist, create it
 				if apierrors.IsNotFound(err) {
-					if err := p.GetClient().Create(ctx, &o); err != nil {
+					if err := p.GetClient().Create(ctx, &o, config.createOpts...); err != nil {
 						retErrs = append(retErrs, err)
 					}
 				} else {
@@ -328,7 +344,7 @@ func (p *clusterProxy) CreateOrUpdate(ctx context.Context, resources []byte, opt
 				}
 			} else {
 				o.SetResourceVersion(existingObject.GetResourceVersion())
-				if err := p.GetClient().Update(ctx, &o); err != nil {
+				if err := p.GetClient().Update(ctx, &o, config.updateOpts...); err != nil {
 					retErrs = append(retErrs, err)
 				}
 			}