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I would add it separately as a new node, then put the old node into maintenance and follow the guide to delete it so its workloads are migrated to your new hardware. https://docs.harvesterhci.io/v1.3/host/#deleting-a-node

@worried-state-78253 Thanks for replying . If I add the new harvester setup as a node in in old one all the VM and image data will automatically moved to new node when I start removing the old node? Or do I have to manually select it ? Also its a single node cluster, "etcd data is not replicated in a single-node cluster. Failure of a single node can cause etcd to lose its quorum and shut the cluster down." (as per document). So should I assume the automatic etcd data will be synced with new node ?

You will need to put it into maintenance - see the linked article, it explains the steps you need to take to make sure the old node is removed completely from the cluster.

with just 2 nodes it may not work since only the first node, the one you are planning to remove is the master