diff --git a/lib/config/configuration.go b/lib/config/configuration.go
index d4f68c4afce53..10a6705e4f96c 100644
--- a/lib/config/configuration.go
+++ b/lib/config/configuration.go
@@ -1545,16 +1545,18 @@ func applyDiscoveryConfig(fc *FileConfig, cfg *servicecfg.Config) error {
 
 	for _, matcher := range fc.Discovery.AzureMatchers {
 		var installerParams *types.InstallerParams
-		if matcher.InstallParams != nil {
+		if slices.Contains(matcher.Types, types.AzureMatcherVM) {
 			installerParams = &types.InstallerParams{
-				JoinMethod:      matcher.InstallParams.JoinParams.Method,
-				JoinToken:       matcher.InstallParams.JoinParams.TokenName,
-				ScriptName:      matcher.InstallParams.ScriptName,
 				PublicProxyAddr: getInstallerProxyAddr(matcher.InstallParams, fc),
 			}
-			if matcher.InstallParams.Azure != nil {
-				installerParams.Azure = &types.AzureInstallerParams{
-					ClientID: matcher.InstallParams.Azure.ClientID,
+			if matcher.InstallParams != nil {
+				installerParams.JoinMethod = matcher.InstallParams.JoinParams.Method
+				installerParams.JoinToken = matcher.InstallParams.JoinParams.TokenName
+				installerParams.ScriptName = matcher.InstallParams.ScriptName
+				if matcher.InstallParams.Azure != nil {
+					installerParams.Azure = &types.AzureInstallerParams{
+						ClientID: matcher.InstallParams.Azure.ClientID,
+					}
 				}
 			}
 		}
@@ -1576,14 +1578,17 @@ func applyDiscoveryConfig(fc *FileConfig, cfg *servicecfg.Config) error {
 
 	for _, matcher := range fc.Discovery.GCPMatchers {
 		var installerParams *types.InstallerParams
-		if matcher.InstallParams != nil {
+		if slices.Contains(matcher.Types, types.GCPMatcherCompute) {
 			installerParams = &types.InstallerParams{
-				JoinMethod:      matcher.InstallParams.JoinParams.Method,
-				JoinToken:       matcher.InstallParams.JoinParams.TokenName,
-				ScriptName:      matcher.InstallParams.ScriptName,
 				PublicProxyAddr: getInstallerProxyAddr(matcher.InstallParams, fc),
 			}
+			if matcher.InstallParams != nil {
+				installerParams.JoinMethod = matcher.InstallParams.JoinParams.Method
+				installerParams.JoinToken = matcher.InstallParams.JoinParams.TokenName
+				installerParams.ScriptName = matcher.InstallParams.ScriptName
+			}
 		}
+
 		serviceMatcher := types.GCPMatcher{
 			Types:           matcher.Types,
 			Locations:       matcher.Locations,
diff --git a/lib/config/configuration_test.go b/lib/config/configuration_test.go
index f8d82390718dd..6c343d025fac0 100644
--- a/lib/config/configuration_test.go
+++ b/lib/config/configuration_test.go
@@ -4304,6 +4304,11 @@ func TestDiscoveryConfig(t *testing.T) {
 						"service_accounts": []string{"a@example.com", "b@example.com"},
 					},
 				}
+				cfg["version"] = "v3"
+				cfg["teleport"].(cfgMap)["proxy_server"] = "example.com"
+				cfg["proxy_service"] = cfgMap{
+					"enabled": "no",
+				}
 			},
 			expectedGCPMatchers: []types.GCPMatcher{{
 				Types:     []string{"gce"},
@@ -4317,9 +4322,10 @@ func TestDiscoveryConfig(t *testing.T) {
 				ProjectIDs:      []string{"p1", "p2"},
 				ServiceAccounts: []string{"a@example.com", "b@example.com"},
 				Params: &types.InstallerParams{
-					JoinMethod: types.JoinMethodGCP,
-					JoinToken:  types.GCPInviteTokenName,
-					ScriptName: installers.InstallerScriptName,
+					JoinMethod:      types.JoinMethodGCP,
+					JoinToken:       types.GCPInviteTokenName,
+					ScriptName:      installers.InstallerScriptName,
+					PublicProxyAddr: "example.com",
 				},
 			}},
 		},
@@ -4632,6 +4638,11 @@ func TestDiscoveryConfig(t *testing.T) {
 						},
 					},
 				}
+				cfg["version"] = "v3"
+				cfg["teleport"].(cfgMap)["proxy_server"] = "example.com"
+				cfg["proxy_service"] = cfgMap{
+					"enabled": "no",
+				}
 			},
 			expectedAzureMatchers: []types.AzureMatcher{{
 				Types:          []string{"vm"},
@@ -4642,10 +4653,11 @@ func TestDiscoveryConfig(t *testing.T) {
 					"discover_teleport": []string{"yes"},
 				},
 				Params: &types.InstallerParams{
-					JoinMethod: "azure",
-					JoinToken:  "azure-discovery-token",
-					ScriptName: "default-installer",
-					Azure:      &types.AzureInstallerParams{},
+					JoinMethod:      "azure",
+					JoinToken:       "azure-discovery-token",
+					ScriptName:      "default-installer",
+					PublicProxyAddr: "example.com",
+					Azure:           &types.AzureInstallerParams{},
 				},
 			}},
 		},