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@creamy-pencil-82913 It doesn't bother me per se, I just want to make sure that I don't accumulate old instance managers over time. Will it only keep instance-managers only for the current and the (single) previous version, or will it accumulate every time I upgrade Longhorn?

One for the ones that you do not upgrade the engine for. You have to detach the volume and reattach by scaling the pod. Recommend that you upgrade the engine to the latest one.