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All of these nodes are behind a loadbalancer too so my current upgrades using this method are pretty seamless so far

Personally, I have installed RKE2 via rpm method, so upgrades to RKE2 are done at same time I do OS patching. Ofcourse that only applies to RPM based OS distributions

Thanks! Im using terraform/userdata for the deployment of rancher and terraform for the deployment/management of the downstream clusters. I have thought of replacing terraform/userdata with terraform/ansible to do both OS patching and rke2 upgrades. So do you just run the rke2 script and specify the new rke2 version?

https://docs.rke2.io/install/methods#rpm I have the repo file under puppet control, so when I want to upgrade lets say RKE2 32 to 33 I just update the file in repo and push it out OS patching is done by ansible playbook which is basically doing dnf update and if there is a newer RKE2 version, it gets updated at same time this is for rancher local nodes