diff --git a/.github/actions/setup-dynamo-operator/action.yml b/.github/actions/setup-dynamo-operator/action.yml
index d6a30bc5c116..21c0379766f1 100644
--- a/.github/actions/setup-dynamo-operator/action.yml
+++ b/.github/actions/setup-dynamo-operator/action.yml
@@ -784,11 +784,15 @@ runs:
             -o json)
           if ! jq -e --arg webhook_name "${webhook_name}" '
             any(.webhooks[];
+              (.matchPolicy // "Equivalent") as $matchPolicy |
               .name == $webhook_name
               and .failurePolicy == "Fail"
               and any(.rules[];
                 (.apiGroups | index("grove.io")) != null
-                and (.apiVersions | index("v1alpha1")) != null
+                and (
+                  (.apiVersions | index("v1alpha1")) != null
+                  or ($matchPolicy == "Equivalent" and (.apiVersions | index("v1beta1")) != null)
+                )
                 and (.resources | index("podcliquesets")) != null
                 and (.operations | index("CREATE")) != null
               )
diff --git a/deploy/helm/charts/platform/Chart.yaml b/deploy/helm/charts/platform/Chart.yaml
index ffa145b99bac..1dbe2132d8b7 100644
--- a/deploy/helm/charts/platform/Chart.yaml
+++ b/deploy/helm/charts/platform/Chart.yaml
@@ -25,7 +25,7 @@ kubeVersion: ">=1.30.0-0"
 home: https://nvidia.com
 annotations:
   # One scalar drives both the bundled dependency and the external-Grove preflight.
-  dynamo.nvidia.com/grove-version: &groveVersion v0.1.0-alpha.15
+  dynamo.nvidia.com/grove-version: &groveVersion v0.2.0-beta1
 dependencies:
   - name: dynamo-operator
     version: 1.7.0
diff --git a/deploy/helm/charts/platform/README.md b/deploy/helm/charts/platform/README.md
index d7b5c5f2e2a2..a56a7b73d6cd 100644
--- a/deploy/helm/charts/platform/README.md
+++ b/deploy/helm/charts/platform/README.md
@@ -173,6 +173,47 @@ sidecar guides.
 **Existing deployments:** No existing workload rolls. Components without a `runtime` init
 container keep running the engine and Dynamo together in `main`.
 
+#### Dependency compatibility
+
+##### Grove v0.2.0-beta1
+
+**Change:** The bundled Grove chart and Go API dependency are now `v0.2.0-beta1`.
+Grove stores resources as `grove.io/v1beta1` and continues serving the
+`grove.io/v1alpha1` API used by Dynamo. The external Grove preflight accepts beta
+release tags and requires the pinned version or later.
+
+**Affected:** All Grove-backed deployments upgrading to Dynamo 1.7.0.
+
+**Action:** Upgrade externally managed Grove and matching CRDs first, with
+`crdInstaller.upgradeCRDs=true`. The platform chart enables this setting for
+bundled Grove, replacing `grove.crdInstaller.enabled`. The API server must be able
+to reach Grove's conversion webhook. With Grove integration enabled, Dynamo's
+alpha informers depend on that webhook to read beta-stored resources. If it is
+unavailable during initial cache synchronization, the shared Dynamo manager can
+fail to start, affecting non-Grove workloads handled by that manager too. After
+startup, failed LIST/WATCH reconnects can leave Grove observations stale while
+cached reads continue to work. This Grove informer dependency does not apply
+when Grove integration is disabled. Read the
+[Grove upgrade and downgrade guide](https://github.com/ai-dynamo/grove/blob/v0.2.0-beta1/docs/user-guide/upgrading-to-v1beta1-v0.2.0-beta1.md)
+before upgrading. Run the downgrade migration back to `v1alpha1` while the
+`v0.2.0-beta1` operator is still running, then roll back to Grove
+`v0.1.0-alpha.16`.
+Earlier CRDs can drop fields written by newer releases.
+
+For bundled Grove, prepare the rollback platform chart with its
+`dynamo.nvidia.com/grove-version` annotation and `grove` dependency pinned to
+`v0.1.0-alpha.16`, then rebuild its dependencies with `helm dependency update`.
+After the migration, deploy that chart with `helm upgrade` to the same release
+and namespace, using saved pre-upgrade values, `global.grove.install=true`, and
+`grove.crdInstaller.enabled=true`. Use client-side apply for this rollback:
+Helm 3 does so by default; with Helm 4, pass `--server-side=false`. Do not roll
+back to an unmodified older platform chart: Dynamo `v1.6.0` bundles `alpha.14`,
+and pre-upgrade `main` bundles `alpha.15`.
+
+**Existing deployments:** Grove converts existing alpha resources without requiring
+manifest changes. An unset clique or scaling-group `scaleConfig.minReplicas` now
+defaults to `minAvailable` rather than `replicas`; existing explicit minima are retained.
+
 ### v1.6.0
 
 #### Runtime Compatibility
@@ -522,7 +563,7 @@ Kubernetes: `>=1.30.0-0`
 | file://components/operator | dynamo-operator | 1.7.0 |
 | https://charts.bitnami.com/bitnami | etcd | 12.0.18 |
 | https://nats-io.github.io/k8s/helm/charts/ | nats | 1.3.2 |
-| oci://ghcr.io/ai-dynamo/grove | grove(grove-charts) | v0.1.0-alpha.15 |
+| oci://ghcr.io/ai-dynamo/grove | grove(grove-charts) | v0.2.0-beta1 |
 | oci://ghcr.io/ai-dynamo/snapshot | snapshot | 0.2.0 |
 | oci://ghcr.io/kai-scheduler/kai-scheduler | kai-scheduler | v0.17.0 |
 
@@ -611,7 +652,7 @@ Kubernetes: `>=1.30.0-0`
 | dynamo-operator.checkpoint.enabled | bool | `false` | Whether to enable checkpoint/restore functionality |
 | grove.tolerations | list | `[]` | Node tolerations for Grove pods |
 | grove.affinity | object | `{}` | Affinity for Grove pods |
-| grove.crdInstaller.enabled | bool | `true` | Upgrade Grove CRDs before the bundled operator starts. |
+| grove.crdInstaller.upgradeCRDs | bool | `true` | Upgrade Grove CRDs before the bundled operator starts. |
 | grove.config.server.healthProbes.enable | bool | `true` | Enable Grove's webhook-aware liveness and readiness probes. The readiness endpoint stays false until certificates and the webhook server are ready. |
 | kai-scheduler.global.tolerations | list | `[]` | Node tolerations for kai-scheduler pods |
 | kai-scheduler.global.affinity | object | `{}` | Affinity for kai-scheduler pods |
@@ -685,6 +726,7 @@ For **production environments**, Kai Scheduler and Grove should be installed sep
 | 1.4.x           | >= v0.13.4    | >= v0.1.0-alpha.12-rc1 |
 | 1.5.x           | >= v0.17.0    | >= v0.1.0-alpha.13 |
 | 1.6.x           | >= v0.17.0    | >= v0.1.0-alpha.15 |
+| 1.7.x           | >= v0.17.0    | >= v0.2.0-beta1 |
 
 Upgrade Grove in lockstep with Dynamo while Grove APIs are not stable. See the
 [v1.4.0 upgrade notes](#v140) for the topology API transition and the
diff --git a/deploy/helm/charts/platform/README.md.gotmpl b/deploy/helm/charts/platform/README.md.gotmpl
index eb1c02ef5a67..93b604881880 100644
--- a/deploy/helm/charts/platform/README.md.gotmpl
+++ b/deploy/helm/charts/platform/README.md.gotmpl
@@ -173,6 +173,47 @@ sidecar guides.
 **Existing deployments:** No existing workload rolls. Components without a `runtime` init
 container keep running the engine and Dynamo together in `main`.
 
+#### Dependency compatibility
+
+##### Grove v0.2.0-beta1
+
+**Change:** The bundled Grove chart and Go API dependency are now `v0.2.0-beta1`.
+Grove stores resources as `grove.io/v1beta1` and continues serving the
+`grove.io/v1alpha1` API used by Dynamo. The external Grove preflight accepts beta
+release tags and requires the pinned version or later.
+
+**Affected:** All Grove-backed deployments upgrading to Dynamo 1.7.0.
+
+**Action:** Upgrade externally managed Grove and matching CRDs first, with
+`crdInstaller.upgradeCRDs=true`. The platform chart enables this setting for
+bundled Grove, replacing `grove.crdInstaller.enabled`. The API server must be able
+to reach Grove's conversion webhook. With Grove integration enabled, Dynamo's
+alpha informers depend on that webhook to read beta-stored resources. If it is
+unavailable during initial cache synchronization, the shared Dynamo manager can
+fail to start, affecting non-Grove workloads handled by that manager too. After
+startup, failed LIST/WATCH reconnects can leave Grove observations stale while
+cached reads continue to work. This Grove informer dependency does not apply
+when Grove integration is disabled. Read the
+[Grove upgrade and downgrade guide](https://github.com/ai-dynamo/grove/blob/v0.2.0-beta1/docs/user-guide/upgrading-to-v1beta1-v0.2.0-beta1.md)
+before upgrading. Run the downgrade migration back to `v1alpha1` while the
+`v0.2.0-beta1` operator is still running, then roll back to Grove
+`v0.1.0-alpha.16`.
+Earlier CRDs can drop fields written by newer releases.
+
+For bundled Grove, prepare the rollback platform chart with its
+`dynamo.nvidia.com/grove-version` annotation and `grove` dependency pinned to
+`v0.1.0-alpha.16`, then rebuild its dependencies with `helm dependency update`.
+After the migration, deploy that chart with `helm upgrade` to the same release
+and namespace, using saved pre-upgrade values, `global.grove.install=true`, and
+`grove.crdInstaller.enabled=true`. Use client-side apply for this rollback:
+Helm 3 does so by default; with Helm 4, pass `--server-side=false`. Do not roll
+back to an unmodified older platform chart: Dynamo `v1.6.0` bundles `alpha.14`,
+and pre-upgrade `main` bundles `alpha.15`.
+
+**Existing deployments:** Grove converts existing alpha resources without requiring
+manifest changes. An unset clique or scaling-group `scaleConfig.minReplicas` now
+defaults to `minAvailable` rather than `replicas`; existing explicit minima are retained.
+
 ### v1.6.0
 
 #### Runtime Compatibility
@@ -585,6 +626,7 @@ For **production environments**, Kai Scheduler and Grove should be installed sep
 | 1.4.x           | >= v0.13.4    | >= v0.1.0-alpha.12-rc1 |
 | 1.5.x           | >= v0.17.0    | >= v0.1.0-alpha.13 |
 | 1.6.x           | >= v0.17.0    | >= v0.1.0-alpha.15 |
+| 1.7.x           | >= v0.17.0    | >= v0.2.0-beta1 |
 
 Upgrade Grove in lockstep with Dynamo while Grove APIs are not stable. See the
 [v1.4.0 upgrade notes](#v140) for the topology API transition and the
diff --git a/deploy/helm/charts/platform/files/grove-preflight/check.py b/deploy/helm/charts/platform/files/grove-preflight/check.py
index 28eea3a26158..3cc8005975da 100644
--- a/deploy/helm/charts/platform/files/grove-preflight/check.py
+++ b/deploy/helm/charts/platform/files/grove-preflight/check.py
@@ -12,14 +12,15 @@
 
 
 def version(tag):
-    # Recognize Grove alpha releases and stable releases; custom/RC tags are unverifiable.
-    match = re.fullmatch(r"v?(\d+)\.(\d+)\.(\d+)(?:-alpha\.(\d+))?", tag)
+    # Recognize Grove alpha, beta, and stable releases; custom/RC tags are unverifiable.
+    match = re.fullmatch(r"v?(\d+)\.(\d+)\.(\d+)(?:-(alpha\.|beta)(\d+))?", tag)
     if not match:
         raise ValueError(
             f"Unverifiable Grove version {tag!r}; use a release-tagged image."
         )
     return tuple(int(n) for n in match.group(1, 2, 3)) + (
-        int(match[4]) if match[4] else float("inf"),
+        {"alpha.": 0, "beta": 1, None: 2}[match[4]],
+        int(match[5] or 0),
     )
 
 
diff --git a/deploy/helm/charts/platform/tests/grove_preflight_test.yaml b/deploy/helm/charts/platform/tests/grove_preflight_test.yaml
index 147b7013b753..630852f5d079 100644
--- a/deploy/helm/charts/platform/tests/grove_preflight_test.yaml
+++ b/deploy/helm/charts/platform/tests/grove_preflight_test.yaml
@@ -38,7 +38,7 @@ tests:
       - matchRegex: {path: 'spec.template.spec.containers[0].args[0]', pattern: 'def check\('}
       - matchRegex:
           path: spec.template.spec.containers[0].args[1]
-          pattern: '^v?[0-9]+\.[0-9]+\.[0-9]+(-alpha\.[0-9]+)?$'
+          pattern: '^v?[0-9]+\.[0-9]+\.[0-9]+(-(alpha\.|beta)[0-9]+)?$'
   - it: keeps the compatibility check visible in long hook names
     set:
       global.grove.enabled: true
diff --git a/deploy/helm/charts/platform/tests/test_grove_preflight.py b/deploy/helm/charts/platform/tests/test_grove_preflight.py
index 1fc5ba8dfb68..43ed7eb910ff 100644
--- a/deploy/helm/charts/platform/tests/test_grove_preflight.py
+++ b/deploy/helm/charts/platform/tests/test_grove_preflight.py
@@ -23,13 +23,15 @@
 
 
 class GrovePreflightTest(unittest.TestCase):
-    def test_orders_alpha_versions_numerically_before_stable(self):
-        self.assertLess(
-            preflight.version("v1.2.3-alpha.9"), preflight.version("v1.2.3-alpha.10")
-        )
-        self.assertLess(
-            preflight.version("v1.2.3-alpha.10"), preflight.version("v1.2.3")
-        )
+    def test_orders_alpha_beta_and_stable_versions(self):
+        for earlier, later in (
+            ("v1.2.3-alpha.9", "v1.2.3-alpha.10"),
+            ("v1.2.3-alpha.10", "v1.2.3-beta1"),
+            ("v1.2.3-beta9", "v1.2.3-beta10"),
+            ("v1.2.3-beta10", "v1.2.3"),
+        ):
+            with self.subTest(earlier=earlier, later=later):
+                self.assertLess(preflight.version(earlier), preflight.version(later))
 
     def test_uses_the_supplied_minimum(self):
         higher = f"v{self.major + 1}.0.0"
@@ -37,7 +39,7 @@ def test_uses_the_supplied_minimum(self):
             preflight.check(self.get, higher)
 
     def setUp(self):
-        self.major, minor, patch, _ = preflight.version(MINIMUM)
+        self.major, minor, patch, *_ = preflight.version(MINIMUM)
         self.stable = f"v{self.major}.{minor}.{patch}"
         self.container = {
             "name": "grove-operator",
@@ -63,6 +65,8 @@ def test_accepts_release_and_rejects_old_or_unverifiable_images(self):
                 self.container["image"] = "registry:5000/grove:" + tag
                 preflight.check(self.get, MINIMUM)
         for image in (
+            "grove:v0.1.0-alpha.15",
+            "grove:v0.2.0-alpha.17",
             "grove:v0.0.0-alpha.0",
             "grove:v0.0.0",
             "grove:latest",
diff --git a/deploy/helm/charts/platform/tests/test_grove_version.py b/deploy/helm/charts/platform/tests/test_grove_version.py
index 4ba6872d3d74..95b3938d3830 100644
--- a/deploy/helm/charts/platform/tests/test_grove_version.py
+++ b/deploy/helm/charts/platform/tests/test_grove_version.py
@@ -1,6 +1,9 @@
 # SPDX-FileCopyrightText: Copyright (c) 2026 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
 # SPDX-License-Identifier: Apache-2.0
 
+import copy
+import json
+import re
 import shutil
 import subprocess
 import tempfile
@@ -10,6 +13,54 @@
 ROOT = Path(__file__).resolve().parents[1]
 
 
+@unittest.skipUnless(shutil.which("jq"), "requires jq CLI")
+class GroveWebhookConfigurationTest(unittest.TestCase):
+    def test_alpha_requests_are_covered_by_fail_closed_webhooks(self):
+        """Accept equivalent beta rules without accepting fail-open or exact beta rules."""
+        action = (
+            ROOT.parents[3] / ".github/actions/setup-dynamo-operator/action.yml"
+        ).read_text()
+        query = re.search(
+            r"(?s)if ! jq -e --arg webhook_name.*? '\n(.*?)\n          ' <<<",
+            action,
+        ).group(1)
+        webhook = {
+            "name": "pcs.defaulting.webhooks.grove.io",
+            "failurePolicy": "Fail",
+            "rules": [
+                {
+                    "apiGroups": ["grove.io"],
+                    "apiVersions": ["v1alpha1"],
+                    "resources": ["podcliquesets"],
+                    "operations": ["CREATE"],
+                }
+            ],
+        }
+        for version, policy, failure, accepted in (
+            ("v1alpha1", "Exact", "Fail", True),
+            ("v1beta1", "Equivalent", "Fail", True),
+            ("v1beta1", None, "Fail", True),
+            ("v1beta1", "Exact", "Fail", False),
+            ("v1beta1", "Equivalent", "Ignore", False),
+            ("v1beta2", "Equivalent", "Fail", False),
+        ):
+            with self.subTest(version=version, policy=policy, failure=failure):
+                candidate = copy.deepcopy(webhook)
+                candidate["failurePolicy"] = failure
+                if policy is not None:
+                    candidate["matchPolicy"] = policy
+                candidate["rules"][0]["apiVersions"] = [version]
+                result = subprocess.run(
+                    ["jq", "-e", "--arg", "webhook_name", webhook["name"], query],
+                    input=json.dumps({"webhooks": [candidate]}),
+                    capture_output=True,
+                    text=True,
+                    timeout=5,
+                    check=False,
+                )
+                self.assertEqual(result.returncode, 0 if accepted else 1, result.stderr)
+
+
 @unittest.skipUnless(shutil.which("helm"), "requires Helm CLI")
 class GroveVersionTest(unittest.TestCase):
     def helm(self, *args):
diff --git a/deploy/helm/charts/platform/values.yaml b/deploy/helm/charts/platform/values.yaml
index a68de01cca42..3bea2054ac66 100644
--- a/deploy/helm/charts/platform/values.yaml
+++ b/deploy/helm/charts/platform/values.yaml
@@ -318,7 +318,7 @@ grove:
   affinity: {}
   crdInstaller:
     # -- Upgrade Grove CRDs before the bundled operator starts.
-    enabled: true
+    upgradeCRDs: true
   config:
     server:
       healthProbes:
diff --git a/deploy/operator/Makefile b/deploy/operator/Makefile
index 002a263cb8bd..7af4283fdb08 100644
--- a/deploy/operator/Makefile
+++ b/deploy/operator/Makefile
@@ -24,8 +24,6 @@ CLUSTERTEST_OPERATOR_IMAGE ?= $(DYNAMO_CLUSTERTEST_OPERATOR_IMAGE)
 CLUSTERTEST_PLATFORM ?= linux/$(GOARCH)
 CLUSTERTEST_LWS_VERSION = $(shell go list -m -f '{{.Version}}' sigs.k8s.io/lws)
 CLUSTERTEST_LWS_CRD_DIR = $(shell go env GOMODCACHE)/sigs.k8s.io/lws@$(CLUSTERTEST_LWS_VERSION)/config/crd/bases
-CLUSTERTEST_GROVE_VERSION = $(shell go list -m -f '{{.Version}}' github.com/ai-dynamo/grove/operator/api)
-CLUSTERTEST_GROVE_CRD_DIR = $(shell go env GOMODCACHE)/github.com/ai-dynamo/grove/operator/api@$(CLUSTERTEST_GROVE_VERSION)/core/v1alpha1/crds
 CLUSTERTEST_VOLCANO_VERSION = $(shell go list -m -f '{{.Version}}' volcano.sh/apis)
 CLUSTERTEST_VOLCANO_PODGROUP_CRD_URL = https://raw.githubusercontent.com/volcano-sh/volcano/$(CLUSTERTEST_VOLCANO_VERSION)/config/crd/volcano/bases/scheduling.volcano.sh_podgroups.yaml
 
@@ -344,8 +342,9 @@ setup-clustertest-crds-in-cluster: kubectl ## Install shared CRDs into the expli
 	$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" apply --server-side -f config/crd/bases
 	go mod download sigs.k8s.io/lws@$(CLUSTERTEST_LWS_VERSION)
 	$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" apply --server-side -f '$(CLUSTERTEST_LWS_CRD_DIR)'
-	go mod download github.com/ai-dynamo/grove/operator/api@$(CLUSTERTEST_GROVE_VERSION)
-	$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" apply --server-side -f '$(CLUSTERTEST_GROVE_CRD_DIR)'
+	# Dependency controllers do not run in clustertests; retain the pinned alpha schema without webhook conversion.
+	go run ./hack/prepare_grove_test_crds | \
+		$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" apply --server-side -f -
 	curl --fail --location --silent --show-error --max-time 60 --retry 3 '$(CLUSTERTEST_VOLCANO_PODGROUP_CRD_URL)' | \
 		$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" apply --server-side -f -
 	$(KUBECTL) --kubeconfig '$(CLUSTERTEST_KUBECONFIG)' --context "$${DYNAMO_CLUSTERTEST_CONTEXT}" wait --for=condition=Established crd --all --timeout=2m
diff --git a/deploy/operator/go.mod b/deploy/operator/go.mod
index 97becd0f1dc2..897f58b14c47 100644
--- a/deploy/operator/go.mod
+++ b/deploy/operator/go.mod
@@ -6,7 +6,7 @@ require (
 	capnproto.org/go/capnp/v3 v3.1.0-alpha.2
 	emperror.dev/errors v0.8.1
 	github.com/Masterminds/semver/v3 v3.4.0
-	github.com/ai-dynamo/grove/operator/api v0.1.0-alpha.15
+	github.com/ai-dynamo/grove/operator/api v0.2.0-beta1
 	github.com/ai-dynamo/modelexpress/modelexpress_client/go v0.0.0-20261002171923-ac6d03a87a55
 	github.com/ai-dynamo/snapshot/api v0.2.0
 	github.com/bsm/gomega v1.27.10
diff --git a/deploy/operator/go.sum b/deploy/operator/go.sum
index 630464257781..12a498fddfff 100644
--- a/deploy/operator/go.sum
+++ b/deploy/operator/go.sum
@@ -18,8 +18,8 @@ github.com/Masterminds/sprig/v3 v3.3.0 h1:mQh0Yrg1XPo6vjYXgtf5OtijNAKJRNcTdOOGZe
 github.com/Masterminds/sprig/v3 v3.3.0/go.mod h1:Zy1iXRYNqNLUolqCpL4uhk6SHUMAOSCzdgBfDb35Lz0=
 github.com/NYTimes/gziphandler v1.1.1 h1:ZUDjpQae29j0ryrS0u/B8HZfJBtBQHjqw2rQ2cqUQ3I=
 github.com/NYTimes/gziphandler v1.1.1/go.mod h1:n/CVRwUEOgIxrgPvAQhUUr9oeUtvrhMomdKFjzJNB0c=
-github.com/ai-dynamo/grove/operator/api v0.1.0-alpha.15 h1:7OD4K8Ihjdehd1fHzAxV6e2bMWzsFaox2UuAZ32qnDU=
-github.com/ai-dynamo/grove/operator/api v0.1.0-alpha.15/go.mod h1:pTafNPyD9ic9WPyfZ6PeoClWbIkzWmMUTORG1tdhNFk=
+github.com/ai-dynamo/grove/operator/api v0.2.0-beta1 h1:i+/GdpillY8cbv5j86CNiPiZZti/9OdrLdDiQnvWMyg=
+github.com/ai-dynamo/grove/operator/api v0.2.0-beta1/go.mod h1:JZgOne08H1JomHIQGudSrSQMXByAAm0mcpfuVP1YV48=
 github.com/ai-dynamo/modelexpress/modelexpress_client/go v0.0.0-20261002171923-ac6d03a87a55 h1:Kk9yUPloFZuSSry7P79fXrI7rAvfW/ywjaeOGeE2LEo=
 github.com/ai-dynamo/modelexpress/modelexpress_client/go v0.0.0-20261002171923-ac6d03a87a55/go.mod h1:gmv3oYWWMcnFRaNH3Ij7oaXZPo5Xkrd0rdN0ry6TMkQ=
 github.com/ai-dynamo/snapshot/api v0.2.0 h1:+Nt4lhF0iiyjbNmOAd0F2lBZVKQb41wfcg1ZOP/iM1E=
diff --git a/deploy/operator/hack/prepare_grove_test_crds/main.go b/deploy/operator/hack/prepare_grove_test_crds/main.go
new file mode 100644
index 000000000000..522928d78ff5
--- /dev/null
+++ b/deploy/operator/hack/prepare_grove_test_crds/main.go
@@ -0,0 +1,66 @@
+// SPDX-FileCopyrightText: Copyright (c) 2026 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+// Emit pinned Grove schemas for tests that do not run the Grove controller.
+package main
+
+import (
+	"fmt"
+	"os"
+
+	grovecrds "github.com/ai-dynamo/grove/operator/api/core/crds"
+	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
+	"sigs.k8s.io/yaml"
+)
+
+func main() {
+	// Fail before emitting anything if the pinned API no longer serves Dynamo's version.
+	crds, err := testCRDs()
+	if err != nil {
+		fmt.Fprintln(os.Stderr, err)
+		os.Exit(1)
+	}
+
+	// Stream manifests directly into the explicitly selected cluster's installer.
+	for _, crd := range crds {
+		data, err := yaml.Marshal(crd)
+		if err == nil {
+			_, err = fmt.Fprintf(os.Stdout, "---\n%s", data)
+		}
+		if err != nil {
+			fmt.Fprintln(os.Stderr, err)
+			os.Exit(1)
+		}
+	}
+}
+
+func testCRDs() ([]*apiextensionsv1.CustomResourceDefinition, error) {
+	// Preserve each pinned alpha schema while removing the dependency on Grove's converter.
+	result := make([]*apiextensionsv1.CustomResourceDefinition, 0, 5)
+	for _, manifest := range []string{
+		grovecrds.PodCliqueSetCRD(),
+		grovecrds.PodCliqueCRD(),
+		grovecrds.PodCliqueScalingGroupCRD(),
+		grovecrds.ClusterTopologyCRD(),
+		grovecrds.PodGangMapCRD(),
+	} {
+		crd := &apiextensionsv1.CustomResourceDefinition{}
+		if err := yaml.Unmarshal([]byte(manifest), crd); err != nil {
+			return nil, err
+		}
+		versions := make([]apiextensionsv1.CustomResourceDefinitionVersion, 0, 1)
+		for _, version := range crd.Spec.Versions {
+			if version.Name == "v1alpha1" && version.Served {
+				version.Storage = true
+				versions = append(versions, version)
+			}
+		}
+		if len(versions) != 1 {
+			return nil, fmt.Errorf("%s: expected one served v1alpha1 schema", crd.Name)
+		}
+		crd.Spec.Versions = versions
+		crd.Spec.Conversion = &apiextensionsv1.CustomResourceConversion{Strategy: apiextensionsv1.NoneConverter}
+		result = append(result, crd)
+	}
+	return result, nil
+}
diff --git a/deploy/operator/hack/prepare_grove_test_crds/main_test.go b/deploy/operator/hack/prepare_grove_test_crds/main_test.go
new file mode 100644
index 000000000000..bb4653e689cb
--- /dev/null
+++ b/deploy/operator/hack/prepare_grove_test_crds/main_test.go
@@ -0,0 +1,92 @@
+// SPDX-FileCopyrightText: Copyright (c) 2026 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+// SPDX-License-Identifier: Apache-2.0
+
+package main
+
+import (
+	"os"
+	"testing"
+
+	grovecrds "github.com/ai-dynamo/grove/operator/api/core/crds"
+	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	"github.com/stretchr/testify/require"
+	corev1 "k8s.io/api/core/v1"
+	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
+	"k8s.io/apimachinery/pkg/runtime"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/envtest"
+	"sigs.k8s.io/yaml"
+)
+
+func TestCRDsPreservePinnedAlphaSchema(t *testing.T) {
+	t.Log("Generate all five Grove test CRDs from the pinned module")
+	crds, err := testCRDs()
+	require.NoError(t, err)
+	require.Len(t, crds, 5)
+	for _, crd := range crds {
+		require.Len(t, crd.Spec.Versions, 1, crd.Name)
+		require.Equal(t, "v1alpha1", crd.Spec.Versions[0].Name, crd.Name)
+		require.True(t, crd.Spec.Versions[0].Served, crd.Name)
+		require.True(t, crd.Spec.Versions[0].Storage, crd.Name)
+		require.Equal(t, apiextensionsv1.NoneConverter, crd.Spec.Conversion.Strategy, crd.Name)
+		require.Nil(t, crd.Spec.Conversion.Webhook, crd.Name)
+	}
+
+	t.Log("Check that the PCS schema, defaults, CEL rules, and subresources are unchanged")
+	var original apiextensionsv1.CustomResourceDefinition
+	require.NoError(t, yaml.Unmarshal([]byte(grovecrds.PodCliqueSetCRD()), &original))
+	for _, version := range original.Spec.Versions {
+		if version.Name == "v1alpha1" {
+			version.Storage = true
+			require.Equal(t, version, crds[0].Spec.Versions[0])
+		}
+	}
+}
+
+func TestPodCliqueSetRequestsWithoutGroveConversionService(t *testing.T) {
+	if os.Getenv("KUBEBUILDER_ASSETS") == "" {
+		t.Skip("requires local envtest assets")
+	}
+
+	t.Log("Install the prepared Grove CRDs into an API server with no Grove operator")
+	crds, err := testCRDs()
+	require.NoError(t, err)
+	env := &envtest.Environment{CRDs: crds}
+	config, err := env.Start()
+	require.NoError(t, err)
+	t.Cleanup(func() { require.NoError(t, env.Stop()) })
+	scheme := runtime.NewScheme()
+	require.NoError(t, corev1.AddToScheme(scheme))
+	require.NoError(t, grovev1alpha1.AddToScheme(scheme))
+	c, err := client.New(config, client.Options{Scheme: scheme})
+	require.NoError(t, err)
+	require.NoError(t, c.Create(t.Context(), &corev1.Namespace{Name: "grove-test"}))
+
+	t.Log("Create the alpha PodCliqueSet used by the cluster-test workload provider")
+	pcs := &grovev1alpha1.PodCliqueSet{
+		Name: "workers", Namespace: "grove-test",
+		Spec: grovev1alpha1.PodCliqueSetSpec{
+			Replicas: 1,
+			Template: grovev1alpha1.PodCliqueSetTemplateSpec{
+				Cliques: []*grovev1alpha1.PodCliqueTemplateSpec{{
+					Name: "worker",
+					Spec: grovev1alpha1.PodCliqueSpec{
+						RoleName: "worker", Replicas: 1, MinAvailable: new(int32(1)),
+						PodSpec: corev1.PodSpec{Containers: []corev1.Container{{Name: "worker", Image: "registry.k8s.io/pause:3.10"}}},
+					},
+				}},
+			},
+		},
+	}
+	require.NoError(t, c.Create(t.Context(), pcs))
+
+	t.Log("Read, list, update, and delete without a conversion webhook service")
+	observed := &grovev1alpha1.PodCliqueSet{}
+	require.NoError(t, c.Get(t.Context(), client.ObjectKeyFromObject(pcs), observed))
+	var list grovev1alpha1.PodCliqueSetList
+	require.NoError(t, c.List(t.Context(), &list, client.InNamespace(pcs.Namespace)))
+	require.Len(t, list.Items, 1)
+	observed.Spec.Replicas = 2
+	require.NoError(t, c.Update(t.Context(), observed))
+	require.NoError(t, c.Delete(t.Context(), observed))
+}
diff --git a/deploy/operator/internal/controller/dgd_grove_watch_setup.go b/deploy/operator/internal/controller/dgd_grove_watch_setup.go
index 0762d21b5ff2..8197e49dc50e 100644
--- a/deploy/operator/internal/controller/dgd_grove_watch_setup.go
+++ b/deploy/operator/internal/controller/dgd_grove_watch_setup.go
@@ -23,6 +23,7 @@ import (
 	nvidiacomv1beta1 "github.com/ai-dynamo/dynamo/deploy/operator/api/v1beta1"
 	commoncontroller "github.com/ai-dynamo/dynamo/deploy/operator/internal/controller_common"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	grovev1beta1 "github.com/ai-dynamo/grove/operator/api/core/v1beta1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime/schema"
 	"k8s.io/apimachinery/pkg/types"
@@ -145,7 +146,10 @@ func (s *groveWatchSetup) resolveOwningPodCliqueSet(
 	podClique *grovev1alpha1.PodClique,
 ) (*grovev1alpha1.PodCliqueSet, bool) {
 	controllerRef := metav1.GetControllerOf(podClique)
-	if controllerRef == nil || controllerRef.APIVersion != grovev1alpha1.SchemeGroupVersion.String() {
+	// Conversion to our alpha client types preserves beta controller owner references.
+	if controllerRef == nil ||
+		(controllerRef.APIVersion != grovev1alpha1.SchemeGroupVersion.String() &&
+			controllerRef.APIVersion != grovev1beta1.SchemeGroupVersion.String()) {
 		return nil, false
 	}
 
@@ -171,8 +175,10 @@ func (s *groveWatchSetup) resolvePodCliqueSetOwner(
 	pcsg *grovev1alpha1.PodCliqueScalingGroup,
 ) (*grovev1alpha1.PodCliqueSet, bool) {
 	controllerRef := metav1.GetControllerOf(pcsg)
+	// Both served Grove versions identify the same owner hierarchy.
 	if controllerRef == nil ||
-		controllerRef.APIVersion != grovev1alpha1.SchemeGroupVersion.String() ||
+		(controllerRef.APIVersion != grovev1alpha1.SchemeGroupVersion.String() &&
+			controllerRef.APIVersion != grovev1beta1.SchemeGroupVersion.String()) ||
 		controllerRef.Kind != "PodCliqueSet" {
 		return nil, false
 	}
diff --git a/deploy/operator/internal/controller/dgd_grove_watch_setup_test.go b/deploy/operator/internal/controller/dgd_grove_watch_setup_test.go
index 156c4bb1a816..1b373e8e9bfd 100644
--- a/deploy/operator/internal/controller/dgd_grove_watch_setup_test.go
+++ b/deploy/operator/internal/controller/dgd_grove_watch_setup_test.go
@@ -4,11 +4,13 @@
 package controller
 
 import (
+	"cmp"
 	"testing"
 
 	nvidiacomv1alpha1 "github.com/ai-dynamo/dynamo/deploy/operator/api/v1alpha1"
 	nvidiacomv1beta1 "github.com/ai-dynamo/dynamo/deploy/operator/api/v1beta1"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	grovev1beta1 "github.com/ai-dynamo/grove/operator/api/core/v1beta1"
 	"github.com/stretchr/testify/require"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
@@ -32,7 +34,7 @@ func TestGroveWatchMapsOnlyDGDControllerOwnedPodCliques(t *testing.T) {
 		}
 	}
 
-	newObjects := func() (*grovev1alpha1.PodClique, *grovev1alpha1.PodCliqueScalingGroup, *grovev1alpha1.PodCliqueSet) {
+	newObjects := func(apiVersion string) (*grovev1alpha1.PodClique, *grovev1alpha1.PodCliqueScalingGroup, *grovev1alpha1.PodCliqueSet) {
 		pcs := &grovev1alpha1.PodCliqueSet{
 			Name:      "engine-pcs",
 			Namespace: "workloads",
@@ -45,40 +47,64 @@ func TestGroveWatchMapsOnlyDGDControllerOwnedPodCliques(t *testing.T) {
 			Namespace: "workloads",
 			UID:       "group-uid",
 			OwnerReferences: []metav1.OwnerReference{controllerRef(
-				grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", pcs.Name, pcs.UID,
+				apiVersion, "PodCliqueSet", pcs.Name, pcs.UID,
 			)}}
 		clique := &grovev1alpha1.PodClique{
 			Name:      "role",
 			Namespace: "workloads",
 			OwnerReferences: []metav1.OwnerReference{controllerRef(
-				grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueScalingGroup", group.Name, group.UID,
+				apiVersion, "PodCliqueScalingGroup", group.Name, group.UID,
 			)}}
 		return clique, group, pcs
 	}
 
 	want := []ctrl.Request{{Namespace: "workloads", Name: "graph"}}
 	tests := []struct {
-		name   string
-		mutate func(*grovev1alpha1.PodClique, *grovev1alpha1.PodCliqueScalingGroup, *grovev1alpha1.PodCliqueSet) []client.Object
-		want   []ctrl.Request
+		name              string
+		groupOwnerVersion string
+		mutate            func(*grovev1alpha1.PodClique, *grovev1alpha1.PodCliqueScalingGroup, *grovev1alpha1.PodCliqueSet) []client.Object
+		want              []ctrl.Request
 	}{
 		{
 			name: "direct PCS ownership",
 			mutate: func(clique *grovev1alpha1.PodClique, _ *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
 				clique.OwnerReferences = []metav1.OwnerReference{controllerRef(
-					grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", pcs.Name, pcs.UID,
+					clique.OwnerReferences[0].APIVersion, "PodCliqueSet", pcs.Name, pcs.UID,
 				)}
 				return []client.Object{pcs}
 			},
 			want: want,
 		},
 		{
-			name: "PCSG-mediated ownership",
+			name:              "PCSG-mediated ownership with alpha PCS owner",
+			groupOwnerVersion: grovev1alpha1.SchemeGroupVersion.String(),
 			mutate: func(_ *grovev1alpha1.PodClique, group *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
 				return []client.Object{group, pcs}
 			},
 			want: want,
 		},
+		{
+			name:              "PCSG-mediated ownership with beta PCS owner",
+			groupOwnerVersion: grovev1beta1.SchemeGroupVersion.String(),
+			mutate: func(_ *grovev1alpha1.PodClique, group *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
+				return []client.Object{group, pcs}
+			},
+			want: want,
+		},
+		{
+			name: "foreign PodClique owner API group",
+			mutate: func(clique *grovev1alpha1.PodClique, group *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
+				clique.OwnerReferences[0].APIVersion = "foreign.example/v1beta1"
+				return []client.Object{group, pcs}
+			},
+		},
+		{
+			name: "foreign scaling group owner API group",
+			mutate: func(_ *grovev1alpha1.PodClique, group *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
+				group.OwnerReferences[0].APIVersion = "foreign.example/v1beta1"
+				return []client.Object{group, pcs}
+			},
+		},
 		{
 			name: "LGD-owned PCS",
 			mutate: func(_ *grovev1alpha1.PodClique, group *grovev1alpha1.PodCliqueScalingGroup, pcs *grovev1alpha1.PodCliqueSet) []client.Object {
@@ -133,11 +159,16 @@ func TestGroveWatchMapsOnlyDGDControllerOwnedPodCliques(t *testing.T) {
 	}
 
 	for _, test := range tests {
-		t.Run(test.name, func(t *testing.T) {
-			clique, group, pcs := newObjects()
-			objects := test.mutate(clique, group, pcs)
-			reader := fake.NewClientBuilder().WithScheme(scheme).WithObjects(objects...).Build()
-			require.Equal(t, test.want, newGroveWatchSetup(reader).mapPodCliqueToRequests(t.Context(), clique))
-		})
+		for _, apiVersion := range []string{grovev1alpha1.SchemeGroupVersion.String(), grovev1beta1.SchemeGroupVersion.String()} {
+			t.Run(test.name+"/"+apiVersion, func(t *testing.T) {
+				t.Log("Observe converted Grove children with their original owner-reference versions")
+				clique, group, pcs := newObjects(apiVersion)
+				group.OwnerReferences[0].APIVersion = cmp.Or(test.groupOwnerVersion, apiVersion)
+				objects := test.mutate(clique, group, pcs)
+				reader := fake.NewClientBuilder().WithScheme(scheme).WithObjects(objects...).Build()
+				t.Log("Map readiness updates only through the exact DGD-owned resource hierarchy")
+				require.Equal(t, test.want, newGroveWatchSetup(reader).mapPodCliqueToRequests(t.Context(), clique))
+			})
+		}
 	}
 }
diff --git a/deploy/operator/internal/controller/dynamographdeployment_controller_test.go b/deploy/operator/internal/controller/dynamographdeployment_controller_test.go
index ecffe4649f37..d0a7a8e7ba91 100644
--- a/deploy/operator/internal/controller/dynamographdeployment_controller_test.go
+++ b/deploy/operator/internal/controller/dynamographdeployment_controller_test.go
@@ -34,6 +34,7 @@ import (
 	grovecommon "github.com/ai-dynamo/grove/operator/api/common"
 	groveconstants "github.com/ai-dynamo/grove/operator/api/common/constants"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	grovev1beta1 "github.com/ai-dynamo/grove/operator/api/core/v1beta1"
 	snapshotv1alpha1 "github.com/ai-dynamo/snapshot/api/v1alpha1"
 	"github.com/onsi/gomega"
 	"github.com/stretchr/testify/assert"
@@ -3667,13 +3668,24 @@ func TestGroveWatchSetup_MapPodCliqueScalingGroupToRequests(t *testing.T) {
 				Config:        &configv1alpha1.OperatorConfiguration{},
 				RuntimeConfig: &controller_common.RuntimeConfig{},
 			}
-			reqs := newGroveWatchSetup(r.Client).
-				mapPodCliqueScalingGroupToRequests(context.Background(), tt.obj)
-
-			g.Expect(reqs).To(gomega.HaveLen(tt.wantRequests))
-			if tt.wantRequests == 1 {
-				g.Expect(reqs[0].Name).To(gomega.Equal(tt.wantName))
-				g.Expect(reqs[0].Namespace).To(gomega.Equal(tt.wantNs))
+			for _, apiVersion := range []string{grovev1alpha1.SchemeGroupVersion.String(), grovev1beta1.SchemeGroupVersion.String()} {
+				t.Logf("Map scaling-group readiness with %s owner references", apiVersion)
+				obj := tt.obj.DeepCopyObject().(client.Object)
+				owners := obj.GetOwnerReferences()
+				for i := range owners {
+					if owners[i].APIVersion == grovev1alpha1.SchemeGroupVersion.String() {
+						owners[i].APIVersion = apiVersion
+					}
+				}
+				obj.SetOwnerReferences(owners)
+				reqs := newGroveWatchSetup(r.Client).
+					mapPodCliqueScalingGroupToRequests(context.Background(), obj)
+
+				g.Expect(reqs).To(gomega.HaveLen(tt.wantRequests))
+				if tt.wantRequests == 1 {
+					g.Expect(reqs[0].Name).To(gomega.Equal(tt.wantName))
+					g.Expect(reqs[0].Namespace).To(gomega.Equal(tt.wantNs))
+				}
 			}
 		})
 	}
diff --git a/deploy/operator/internal/controller/lpx/pipeline_request.go b/deploy/operator/internal/controller/lpx/pipeline_request.go
index 2fa237f46d29..4dc1de28a9d1 100644
--- a/deploy/operator/internal/controller/lpx/pipeline_request.go
+++ b/deploy/operator/internal/controller/lpx/pipeline_request.go
@@ -21,6 +21,7 @@ import (
 	lpxv1alpha1 "github.com/ai-dynamo/dynamo/deploy/operator/internal/dynamo/lpx/scheduler/v1alpha1"
 	grovecommon "github.com/ai-dynamo/grove/operator/api/common"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	grovev1beta1 "github.com/ai-dynamo/grove/operator/api/core/v1beta1"
 	corev1 "k8s.io/api/core/v1"
 	apiequality "k8s.io/apimachinery/pkg/api/equality"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -308,7 +309,10 @@ func (r *graphReconciler) removeReleasedAgentPod(ctx context.Context, pcsgs map[
 	}
 
 	cliqueOwner := metav1.GetControllerOf(pod)
-	if cliqueOwner == nil || cliqueOwner.APIVersion != grovev1alpha1.SchemeGroupVersion.String() || cliqueOwner.Kind != "PodClique" {
+	// Converted children can carry either served Grove version in owner references.
+	if cliqueOwner == nil ||
+		(cliqueOwner.APIVersion != grovev1alpha1.SchemeGroupVersion.String() && cliqueOwner.APIVersion != grovev1beta1.SchemeGroupVersion.String()) ||
+		cliqueOwner.Kind != "PodClique" {
 		return fmt.Errorf("released Agent Pod %q has no PodClique controller", pod.Name)
 	}
 	clique := &grovev1alpha1.PodClique{}
@@ -320,7 +324,9 @@ func (r *graphReconciler) removeReleasedAgentPod(ctx context.Context, pcsgs map[
 	}
 
 	groupOwner := metav1.GetControllerOf(clique)
-	if groupOwner == nil || groupOwner.APIVersion != grovev1alpha1.SchemeGroupVersion.String() || groupOwner.Kind != "PodCliqueScalingGroup" {
+	if groupOwner == nil ||
+		(groupOwner.APIVersion != grovev1alpha1.SchemeGroupVersion.String() && groupOwner.APIVersion != grovev1beta1.SchemeGroupVersion.String()) ||
+		groupOwner.Kind != "PodCliqueScalingGroup" {
 		return fmt.Errorf("released Agent Pod %q's PodClique has no PodCliqueScalingGroup controller", pod.Name)
 	}
 	if group := pcsgs[groupOwner.Name]; group == nil || group.UID != groupOwner.UID {
diff --git a/deploy/operator/internal/controller/lpx/pipeline_request_test.go b/deploy/operator/internal/controller/lpx/pipeline_request_test.go
index 3ca0321c611d..94a1e5bef140 100644
--- a/deploy/operator/internal/controller/lpx/pipeline_request_test.go
+++ b/deploy/operator/internal/controller/lpx/pipeline_request_test.go
@@ -6,6 +6,7 @@
 package lpx
 
 import (
+	"cmp"
 	"context"
 	"errors"
 	"slices"
@@ -17,6 +18,7 @@ import (
 	"github.com/ai-dynamo/dynamo/deploy/operator/internal/dynamo/lpx"
 	lpxv1alpha1 "github.com/ai-dynamo/dynamo/deploy/operator/internal/dynamo/lpx/scheduler/v1alpha1"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
+	grovev1beta1 "github.com/ai-dynamo/grove/operator/api/core/v1beta1"
 	"github.com/stretchr/testify/require"
 	corev1 "k8s.io/api/core/v1"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -30,10 +32,13 @@ import (
 func TestRemoveReleasedAgentPods(t *testing.T) {
 	for _, tc := range []struct {
 		name, change                                  string
+		podOwnerVersion, cliqueOwnerVersion           string
 		reason                                        lpxv1alpha1.ReleaseReason
 		remove, wantError, deleteError, missingClique bool
 	}{
 		{name: "dependency changed", remove: true},
+		{name: "beta Pod owner", podOwnerVersion: grovev1beta1.SchemeGroupVersion.String(), remove: true},
+		{name: "beta PodClique owner", cliqueOwnerVersion: grovev1beta1.SchemeGroupVersion.String(), remove: true},
 		{name: "request changed", reason: lpxv1alpha1.ReleaseReasonRequestChanged, remove: true},
 		{name: "binding failed", reason: lpxv1alpha1.ReleaseReasonBindingFailed, remove: true},
 		{name: "unbound target", change: "target", remove: true},
@@ -64,6 +69,8 @@ func TestRemoveReleasedAgentPods(t *testing.T) {
 		t.Run(tc.name, func(t *testing.T) {
 			t.Log("Observe one released Agent Pod and its ownership beneath a trusted scaling group")
 			pcsgs, pclq, pod := newLPXTestAgentHierarchy()
+			pod.OwnerReferences[0].APIVersion = cmp.Or(tc.podOwnerVersion, grovev1alpha1.SchemeGroupVersion.String())
+			pclq.OwnerReferences[0].APIVersion = cmp.Or(tc.cliqueOwnerVersion, grovev1alpha1.SchemeGroupVersion.String())
 			request := newLPXTestReleaseRequest(pod)
 			execution := &request.Status.Committed.Execution
 			if tc.reason != "" {
@@ -232,17 +239,25 @@ func TestGetPipelineRequests(t *testing.T) {
 			for _, request := range []struct {
 				name, namespace string
 				uid             types.UID
+				apiVersion      string
+				kind            string
+				controller      bool
 			}{
-				{"last", "default", "pcs-uid"},
-				{"first", "default", "pcs-uid"},
-				{"other-owner", "default", "other-uid"},
-				{"other-namespace", "other", "pcs-uid"},
+				{"last", "default", "pcs-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", true},
+				{"first", "default", "pcs-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", true},
+				{"other-owner", "default", "other-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", true},
+				{"other-namespace", "other", "pcs-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", true},
+				{"beta", "default", "pcs-uid", grovev1beta1.SchemeGroupVersion.String(), "PodCliqueSet", true},
+				{"foreign-group", "default", "pcs-uid", "foreign.example/v1alpha1", "PodCliqueSet", true},
+				{"unsupported-version", "default", "pcs-uid", "grove.io/v2", "PodCliqueSet", true},
+				{"wrong-kind", "default", "pcs-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodClique", true},
+				{"non-controller", "default", "pcs-uid", grovev1alpha1.SchemeGroupVersion.String(), "PodCliqueSet", false},
 			} {
 				objects = append(objects, &lpxv1alpha1.LPUPipelineRequest{
 					Name: request.name, Namespace: request.namespace,
 					OwnerReferences: []metav1.OwnerReference{{
-						APIVersion: grovev1alpha1.SchemeGroupVersion.String(), Kind: "PodCliqueSet",
-						Name: "pcs", UID: request.uid, Controller: new(true),
+						APIVersion: request.apiVersion, Kind: request.kind,
+						Name: "pcs", UID: request.uid, Controller: new(request.controller),
 					}}})
 			}
 			r := &graphReconciler{Client: newLPXTestClient(t, objects...)}
diff --git a/deploy/operator/internal/controller/lpx/watch.go b/deploy/operator/internal/controller/lpx/watch.go
index 6a55e1cf54de..2d8705e1f4f1 100644
--- a/deploy/operator/internal/controller/lpx/watch.go
+++ b/deploy/operator/internal/controller/lpx/watch.go
@@ -74,6 +74,7 @@ func (r *graphReconciler) setupWithManager(mgr ctrl.Manager) error {
 
 func pipelineRequestOwnerUID(obj client.Object) []string {
 	owner := metav1.GetControllerOf(obj)
+	// Dynamo authors these references with its alpha PCS client.
 	if owner == nil || owner.APIVersion != grovev1alpha1.SchemeGroupVersion.String() || owner.Kind != podCliqueSetKind {
 		return nil
 	}
diff --git a/deploy/operator/internal/dynamo/grove_schema_test.go b/deploy/operator/internal/dynamo/grove_schema_test.go
index 0bed1402faff..29b2f03af0db 100644
--- a/deploy/operator/internal/dynamo/grove_schema_test.go
+++ b/deploy/operator/internal/dynamo/grove_schema_test.go
@@ -11,8 +11,8 @@ import (
 	configv1alpha1 "github.com/ai-dynamo/dynamo/deploy/operator/api/config/v1alpha1"
 	v1alpha1 "github.com/ai-dynamo/dynamo/deploy/operator/api/v1alpha1"
 	controller_common "github.com/ai-dynamo/dynamo/deploy/operator/internal/controller_common"
+	grovecrds "github.com/ai-dynamo/grove/operator/api/core/crds"
 	grovev1alpha1 "github.com/ai-dynamo/grove/operator/api/core/v1alpha1"
-	grovecrds "github.com/ai-dynamo/grove/operator/api/core/v1alpha1/crds"
 	"github.com/stretchr/testify/require"
 	"k8s.io/apiextensions-apiserver/pkg/apis/apiextensions"
 	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
diff --git a/deploy/operator/internal/testing/clusterenv/DESIGN.md b/deploy/operator/internal/testing/clusterenv/DESIGN.md
index b0a3f9614573..e3fdb6306418 100644
--- a/deploy/operator/internal/testing/clusterenv/DESIGN.md
+++ b/deploy/operator/internal/testing/clusterenv/DESIGN.md
@@ -75,6 +75,13 @@ PodCliqueSet handlers at Grove's production paths. Grove CRD schema validation
 and OpenAPI defaulting still run in the API server; the transparent handlers
 are replaced by Grove's production `Setup` API once it is released.
 
+The shared setup derives Grove test CRDs from the pinned Go API bundle through
+`hack/prepare_grove_test_crds`. It retains only `v1alpha1` as the served and storage
+version, preserving that version's schema, CEL validation, and OpenAPI defaults.
+Conversion is disabled because this harness does not run the Grove operator.
+The deployment smoke tests install the published Grove chart and exercise its
+real beta conversion and admission webhooks.
+
 The webhook manager is independent of all per-test controller managers. No
 operator controller runs merely because a test uses admission or conversion.
 The proxy image is configurable with `WebhookProxyImage`; the controller suite