diff --git a/Makefile b/Makefile
index 9222b7c1b..f09b3be96 100644
--- a/Makefile
+++ b/Makefile
@@ -1,5 +1,6 @@
 NAMESPACE ?= hmc-system
-VERSION ?= $(patsubst v%,%,$(shell git describe --tags --always))
+VERSION ?= $(shell git describe --tags --always)
+VERSION := $(patsubst v%,%,$(VERSION))
 FQDN_VERSION = $(subst .,-,$(VERSION))
 # Image URL to use all building/pushing image targets
 IMG ?= hmc/controller:latest
diff --git a/internal/controller/release_controller.go b/internal/controller/release_controller.go
index 79ac14676..0ff94cb18 100644
--- a/internal/controller/release_controller.go
+++ b/internal/controller/release_controller.go
@@ -192,6 +192,7 @@ func (r *ReleaseReconciler) reconcileHMCTemplates(ctx context.Context, releaseNa
 		l.Info("Initial creation of HMC Release is skipped")
 		return nil
 	}
+	initialInstall := releaseName == ""
 	var ownerRefs []metav1.OwnerReference
 	if releaseName == "" {
 		releaseName = utils.ReleaseNameFromVersion(build.Version)
@@ -252,7 +253,7 @@ func (r *ReleaseReconciler) reconcileHMCTemplates(ctx context.Context, releaseNa
 		},
 	}
 
-	if releaseName == "" {
+	if initialInstall {
 		createReleaseValues := map[string]any{
 			"createRelease": true,
 		}