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When content changes some commands such as [1] will trigger regeneration of entitlement certs in case the content changed. This will subsequently update [2]

I suspect that rhsmcertd should do this proactively but I have not yet been able to observe it.

[1] repos --list
[2] /etc/yum.repos.d/redhat.repo

Why should this be done proactively vs. the yum plugin taking care of it? Can you provide an example of where the current behavior would impact a customer?

Yes if yum plugin takes care of this it is fine. I was just afraid that some code paths might not be covered (such as when the certs are needed for yum)