diff --git a/fwprovider/tests/resource_vm_test.go b/fwprovider/tests/resource_vm_test.go
index 3382b926..c810e537 100644
--- a/fwprovider/tests/resource_vm_test.go
+++ b/fwprovider/tests/resource_vm_test.go
@@ -317,7 +317,7 @@ func TestAccResourceVMInitialization(t *testing.T) {
 				}`),
 			Check: resource.ComposeTestCheckFunc(
 				testResourceAttributes("proxmox_virtual_environment_vm.test_vm_cloudinit", map[string]string{
-					"initialization.0.upgrade": "true",
+					"initialization.0.upgrade": "false",
 				}),
 			),
 		}}},
diff --git a/proxmoxtf/resource/vm/vm.go b/proxmoxtf/resource/vm/vm.go
index 9496fca7..62e165d6 100644
--- a/proxmoxtf/resource/vm/vm.go
+++ b/proxmoxtf/resource/vm/vm.go
@@ -903,7 +903,7 @@ func VM() *schema.Resource {
 						Type:        schema.TypeBool,
 						Description: "Whether to do an automatic package upgrade after the first boot",
 						Optional:    true,
-						Default:     dvInitializationUpgrade,
+						Computed:    true,
 					},
 				},
 			},
@@ -2970,7 +2970,7 @@ func vmGetCloudInitConfig(d *schema.ResourceData) *vms.CustomCloudInitConfig {
 		initializationConfig.Type = &initializationType
 	}
 
-	if initializationBlock[mkInitializationUpgrade] != nil {
+	if initializationBlock[mkInitializationUpgrade] != nil && initializationConfig.Files == nil {
 		v := types.CustomBool(initializationBlock[mkInitializationUpgrade].(bool))
 		initializationConfig.Upgrade = &v
 	}