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imported aks = azure controls the release cycle, etcd backups, etc 1.24 -> 1.25 is a massive jump because of the removal of PSPs (pod security policies) which rancher has historically been very reliant on, thats the primary reason they have been so slow to adopt 1.25 where previously they would be pretty on top of release schedules

Our customer already uses AKS and want to stay with AKS. And Rancher is for managing the multiple clusters that the customer now need to add. We use the main rancher cluster as central monitoring/logging/flux instance for deployments and global view on the downstream clusters. (dev/staging/prod)

my 2c, terraform spin up aks clusters, and then import them into rancher and let aks deal with all of the messy control-plane bits. Continue to use rancher the way you are, as a single pane and k8s gui layer.

At the moment we have Rancher launched AKS clusters. But we are thinking in maybe moving to imported AKS clusters. We use the terraform rancher2 provider to create the downstream clusters.

the rancher agent runs as a daemonset on all nodes in the cluster, so it would spin up on any new nodes you create

The support for k8s 1.25 will be added in Rancher v2.7.2 which is coming very soon 🙂

Does Rancher AKS Launched cluster support manual AKS k8S version upgrade ?

yes, you can upgrade it in Rancher by editing the cluster and select a newer version from the versions dropdown list in rancher UI.

I meant, manual AKS upgrade in Azure