Guide for updating v1 -> v2

content/master/guides/upgrade-to-crossplane-v2.md

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+---
+title: Upgrade to Crossplane v2
+weight: 410
+description: "Upgrade from Crossplane v1 to v2"
+---
+
+Crossplane v2 introduces significant improvements while maintaining backward 
+compatibility with most v1 configurations. This guide helps you upgrade from 
+Crossplane v1.x to v2.
+
+Learn about [new features in Crossplane v2]({{<ref "../whats-new">}}) including 
+namespaced resources, the ability to compose any Kubernetes resource, and new 
+operational workflows.
+
+{{<hint "important">}}
+Only upgrade to Crossplane v2 from Crossplane v1.20, the final v1.x release.
+If you're running an earlier version, upgrade to v1.20 first.
+{{</hint>}}
+
+{{<hint "note">}}
+There's no automated tooling yet to migrate existing v1 cluster-scoped XRs and 
+MRs to v2 namespaced style. You can upgrade to Crossplane v2 and 
+start using the new namespaced features right away - your existing v1 
+resources continue working unchanged. See 
+[crossplane/crossplane#6726](https://github.com/crossplane/crossplane/issues/6726) 
+for migration tooling progress.
+{{</hint>}}
+
+## Prerequisites
+
+Before upgrading, ensure:
+
+* You're running Crossplane v1.20
+* You're not using deprecated features (see [removed features](#removed-features))
+* All packages use fully qualified image names
+* [Helm](https://helm.sh/docs/intro/install/) version v3.2.0 or later
+
+## Removed features
+
+Crossplane v2 removes these deprecated features:
+
+* [Native patch and transform composition](#native-patch-and-transform-composition)
+* [ControllerConfig type](#controllerconfig-type)
+* [External secret stores](#external-secret-stores)
+* [Default registry flag](#default-registry-flag)
+
+### Native patch and transform composition
+**Deprecated in**: v1.17  
+**Replaced by**: [Composition functions]({{<ref "../composition/compositions">}})
+
+If you're using `spec.mode: Resources` in your Compositions, migrate to
+composition functions before upgrading.
+
+**Migration help**: use the Crossplane v1.20 CLI to automatically convert your
+Compositions:
+
+```shell
+# Convert patch and transform to function pipelines  
+crossplane beta convert pipeline-composition old-composition.yaml -o new-composition.yaml
+```
+
+<!-- vale Google.Headings = NO -->
+### ControllerConfig type
+<!-- vale Google.Headings = YES -->
+**Deprecated in**: v1.11  
+**Replaced by**: [DeploymentRuntimeConfig]({{<ref "../packages/providers#runtime-configuration">}})
+
+Update any ControllerConfig resources to use DeploymentRuntimeConfig instead.
+
+**Migration help**: use the Crossplane v1.20 CLI to automatically convert your
+ControllerConfigs:
+
+```shell
+# Convert ControllerConfig to DeploymentRuntimeConfig
+crossplane beta convert deployment-runtime controller-config.yaml -o deployment-runtime-config.yaml
+```
+
+### External secret stores
+**Status**: alpha feature, unmaintained
+
+If you're using external secret stores, migrate to native Kubernetes secrets 
+or [External Secrets Operator](https://external-secrets.io/latest/) before upgrading.
+
+### Default registry flag
+**Removed**: `--registry` flag for default package registry
+
+All packages must now use fully qualified names including the registry 
+host name. Check your packages with:
+
+```shell
+kubectl get pkg -o wide
+```
+
+Update any packages without registry host names before upgrading. For example:
+- ❌ `crossplane-contrib/provider-aws-s3:v1.23.0` 
+- ✅ `xpkg.crossplane.io/crossplane-contrib/provider-aws-s3:v1.23.0`
+
+## Who can upgrade
+
+You can upgrade to Crossplane v2 if you meet these criteria:
+
+* ✅ Running Crossplane v1.20
+* ✅ Not using native patch and transform composition
+* ✅ Not using ControllerConfig resources
+* ✅ Not using external secret stores
+* ✅ All packages use fully qualified image names
+
+If you're using any removed features, migrate away from them first.
+
+## Upgrade approach
+
+The recommended upgrade approach:
+
+1. [Prepare for upgrade](#1-prepare-for-upgrade)
+2. [Upgrade Crossplane core](#2-upgrade-crossplane-core)  
+3. [Configure managed resource activation policies](#3-configure-managed-resource-activation-policies)
+4. [Upgrade providers](#4-upgrade-providers)
+5. [Start using v2 features](#5-start-using-v2-features)
+
+### 1. Prepare for upgrade
+
+Review your cluster for [removed features](#removed-features) and address any
+that you're using. Each removed feature section includes commands to inspect
+your cluster and migration tools to help convert resources.
+
+### 2. Upgrade Crossplane core
+
+Add the Crossplane Helm repository:
+
+```shell
+helm repo add crossplane-stable https://charts.crossplane.io/stable
+helm repo update
+```
+
+Upgrade to Crossplane v2:
+
+```shell
+helm upgrade crossplane \
+  --namespace crossplane-system \
+  crossplane-stable/crossplane
+```
+
+Verify the upgrade:
+
+```shell
+kubectl get pods -n crossplane-system
+```
+
+### 3. Configure managed resource activation policies
+
+Crossplane v2 automatically creates a default [MRAP]({{<ref "../managed-resources/managed-resource-activation-policies">}}) that activates all managed 
+resources (`*`). Before installing v2 providers, you can optionally customize
+this for better cluster resource efficiency.
+
+Check what managed resources you use:
+
+```shell
+# See your managed resource types
+kubectl get managed
+```
+
+Optionally, replace the default MRAP with a targeted one that activates only 
+the resources you need:
+
+```shell
+# Delete the default catch-all MRAP
+kubectl delete mrap default
+```
+
+Create a targeted MRAP:
+
+```yaml
+apiVersion: apiextensions.crossplane.io/v1alpha1
+kind: ManagedResourceActivationPolicy
+metadata:
+  name: my-resources
+spec:
+  activate:
+  # Legacy cluster-scoped resources (existing v1 resources)
+  - buckets.s3.aws.upbound.io
+  - instances.ec2.aws.upbound.io
+
+  # Modern namespaced resources (new v2 resources)  
+  - buckets.s3.aws.m.upbound.io
+  - instances.ec2.aws.m.upbound.io
+```
+
+{{<hint "tip">}}
+Notice the distinction: `s3.aws.upbound.io` (legacy cluster-scoped) vs 
+`s3.aws.m.upbound.io` (v2 namespaced). The `.m.` indicates modern 
+namespaced managed resources.
+{{</hint>}}
+
+### 4. Upgrade providers
+
+Upgrade your providers to versions that support both namespaced and 
+cluster-scoped managed resources:
+
+```shell
+# Check current provider versions
+kubectl get providers
+```
+
+Update your provider manifests to use v2 versions:
+
+```yaml
+apiVersion: pkg.crossplane.io/v1
+kind: Provider
+metadata:
+  name: crossplane-contrib-provider-aws-s3
+spec:
+  package: xpkg.crossplane.io/crossplane-contrib/provider-aws-s3:v2.0.0
+```
+
+{{<hint "note">}}
+Provider v2 releases support both legacy cluster-scoped and new namespaced
+managed resources. Your existing cluster-scoped MRs continue working unchanged.
+{{</hint>}}
+
+### 5. Start using v2 features
+
+After upgrading, you can begin using Crossplane v2 features:
+
+- **Namespaced managed resources**: Try the [managed resources getting started guide]({{<ref "../get-started/get-started-with-managed-resources">}})
+- **Composition functions**: Follow the [composition getting started guide]({{<ref "../get-started/get-started-with-composition">}})
+- **Operations**: Explore the [operations getting started guide]({{<ref "../get-started/get-started-with-operations">}})
+- **Managed resource definitions**: See the [MRDs guide]({{<ref "./disabling-unused-managed-resources">}})
+
+## Updating compositions for v2
+
+Existing Compositions work with Crossplane v2 with minimal changes. v2 managed
+resources are schematically identical to v1 managed resources - they're just
+namespaced.
+
+To use v2 namespaced managed resources in compositions:
+
+1. **Update the API group** from `.crossplane.io` to `.m.crossplane.io`
+2. **Check the API version** - v2 namespaced providers often reset the API
+   version to `v1beta1`
+
+For example `provider-aws-s3:v2.0.0` has two `Bucket` MRs:
+
+* `apiVersion: s3.aws.upbound.io/v1beta2` - Legacy, cluster scoped
+* `apiVersion: s3.aws.m.upbound.io/v1beta1` - Namespaced
+
+The `spec.forProvider` and `status.atProvider` fields are schematically
+identical.
+
+{{<hint "tip">}}
+Use `kubectl get mrds` to see available MR API versions.
+{{</hint>}}
+
+{{<hint "note">}}
+Not all providers use `.crossplane.io` domains. For example, `provider-aws-s3`
+uses `.upbound.io` domains for historical reasons. The general pattern for
+namespaced resources is adding `.m` to the existing domain: `<domain>` becomes
+`m.<domain>` (like `upbound.io` → `m.upbound.io` or `crossplane.io` →
+`m.crossplane.io`).
+{{</hint>}}
+
+**Before (v1 cluster-scoped)**:
+```yaml
+apiVersion: apiextensions.crossplane.io/v1
+kind: Composition
+metadata:
+  name: my-app
+spec:
+  compositeTypeRef:
+    apiVersion: example.crossplane.io/v1
+    kind: XBucket
+  mode: Pipeline
+  pipeline:
+  - step: create-bucket
+    functionRef:
+      name: crossplane-contrib-function-go-templating
+    input:
+      apiVersion: gotemplating.fn.crossplane.io/v1beta1
+      kind: GoTemplate
+      source: Inline
+      inline:
+        template: |
+          apiVersion: s3.aws.upbound.io/v1beta2
+          kind: Bucket
+          metadata:
+            name: {{ .observed.composite.resource.metadata.name }}
+          spec:
+            forProvider:
+              region: us-east-2
+```
+
+**After (v2 namespaced)**:
+```yaml
+apiVersion: apiextensions.crossplane.io/v1
+kind: Composition
+metadata:
+  name: my-app
+spec:
+  compositeTypeRef:
+    apiVersion: example.crossplane.io/v1
+    kind: Bucket
+  mode: Pipeline
+  pipeline:
+  - step: create-bucket
+    functionRef:
+      name: crossplane-contrib-function-go-templating
+    input:
+      apiVersion: gotemplating.fn.crossplane.io/v1beta1
+      kind: GoTemplate
+      source: Inline
+      inline:
+        template: |
+          apiVersion: s3.aws.m.upbound.io/v1beta1  # Added .m, reset to v1beta1
+          kind: Bucket
+          metadata:
+            name: {{ .observed.composite.resource.metadata.name }}
+          spec:
+            forProvider:
+              region: us-east-2
+```
+
+{{<hint "tip">}}
+**Namespace handling in compositions**:
+- **Namespaced XRs**: Don't specify `metadata.namespace` in templates.
+  Crossplane ignores template namespaces and uses the XR's namespace.
+- **Modern cluster-scoped XRs** (`scope: Cluster`): Can compose resources in any
+  namespace. Include `metadata.namespace` in templates to specify the target
+  namespace.
+- **Legacy cluster-scoped XRs** (`scope: LegacyCluster`): Can't compose
+  namespaced resources.
+{{</hint>}}
+
+## Legacy resource behavior
+
+Your existing v1 resources continue working in Crossplane v2:
+
+* **Legacy cluster-scoped XRs**: Continue working with claims support
+* **Legacy cluster-scoped MRs**: Continue working unchanged
+* **Existing Compositions**: Continue working with legacy XRs
+
+These resources use `LegacyCluster` scope internally and maintain full 
+backward compatibility.
+
+For example, existing v1-style XRDs continue working with claims:
+
+```yaml
+apiVersion: apiextensions.crossplane.io/v1
+kind: CompositeResourceDefinition
+metadata:
+  name: xdatabases.example.crossplane.io
+spec:
+  # v1 XRDs default to LegacyCluster scope (shown explicitly)
+  scope: LegacyCluster
+  group: example.crossplane.io
+  names:
+    kind: XDatabase
+    plural: xdatabases
+  claimNames:
+    kind: Database
+    plural: databases
+  # schema definition...
+```
+
+Users can create claims that work as before:
+
+```yaml
+apiVersion: example.crossplane.io/v1
+kind: Database
+metadata:
+  name: my-database
+  namespace: production
+spec:
+  engine: postgres
+  size: large
+```
+
+
+## Next steps
+
+After upgrading:
+
+1. **Explore namespaced resources**: Try creating XRs and MRs in namespaces
+2. **Build app compositions**: Use v2's ability to compose any Kubernetes resource
+3. **Try Operations**: Experiment with operational workflows
+4. **Plan migration**: Consider which existing resources to migrate to v2 patterns
+
+Read more about [what's new in v2]({{<ref "../whats-new">}}) and explore the 
+updated [composition documentation]({{<ref "../composition/compositions">}}).