Hi Almen, I checked the cluster you pinged me and I saw the issue but the cluster is now no longer accessible.

I tried to reproduce it myself using a bad Helm app subscription then change to a good Helm app subscription but it seems ok.

apiVersion: apps.open-cluster-management.io/v1
kind: Channel
metadata:
  name: dev-helmrepo
  namespace: dev
  annotations:
    apps.open-cluster-management.io/reconcile-rate: high
spec:
  type: HelmRepo
  pathname: https://charts.helm.sh/stable/
  insecureSkipVerify: true


apiVersion: apps.open-cluster-management.io/v1
kind: PlacementRule
metadata:
  name: nginx-pr
spec:
  clusterReplicas: 10

apiVersion: apps.open-cluster-management.io/v1
kind: Subscription
metadata:
  name: ingress
spec:
  channel: default/dev-helmrepo
  name: ingress
  placement:
    placementRef:
      kind: PlacementRule
      name: nginx-pr
  packageFilter:
    version: "0.2.0"

this will create a fail helm deploy with appsubstatus

  statuses:
    packages:
    - apiVersion: apps.open-cluster-management.io/v1
      kind: HelmRelease
      lastUpdateTime: "2022-05-09T16:17:04Z"
      message: 'InstallError unable to build kubernetes objects from release manifest: unable to recognize "": no matches for kind "Deployment1" in version "apps/v1"'
      name: ingress-8f723
      namespace: default
      phase: Failed

then change the subscription version from 0.2.0 to 0.1.0 and wait a while and the appsubstatus seems fine

  statuses:
    packages:
    - apiVersion: v1
      kind: ServiceAccount
      lastUpdateTime: "2022-05-09T16:18:04Z"
      name: ingress-8f723
      namespace: default
      phase: Deployed
    - apiVersion: v1
      kind: Service
      lastUpdateTime: "2022-05-09T16:18:04Z"
      name: ingress-8f723
      namespace: default
      phase: Deployed
    - apiVersion: apps/v1
      kind: Deployment
      lastUpdateTime: "2022-05-09T16:18:04Z"
      name: ingress-8f723
      namespace: default
      phase: Deployed
    - apiVersion: apps.open-cluster-management.io/v1
      kind: HelmRelease
      lastUpdateTime: "2022-05-09T16:18:04Z"
      message: 0.1.0
      name: ingress-8f723
      namespace: default
      phase: Deployed

Could you provide the Helm app examples you used in your testing? Thanks.

Almen, is it possible you didn't wait long enough for the reconcile period?

In my channel above I used the annotation

  annotations:
    apps.open-cluster-management.io/reconcile-rate: high

and after I wait 2 minute ish I was able to see the HelmRelease CR is updated to pull from the "good" chart.

You can verify by checking the HelmRelease CR to make sure it's actually downloading from the good chart after you updated your appsub to pull from the good Helm chart. It might take a while if you don't use high reconcile-rate.

As discussed with Almen, I was able to reproduce it by going
from
https://github.com/stolostron/application-lifecycle-samples/tree/main/mortgage-fail-helm
to
https://github.com/stolostron/application-lifecycle-samples/tree/main/helloworld-helm

Verified bugfix on quay.io:443/acm-d/acm-custom-registry:2.5.0-DOWNSTREAM-2022-05-10-21-30-52

Switched from mortgage-helm-fail to helloworld-helm for https://raw.githubusercontent.com/stolostron/application-lifecycle-samples/main
All the resources were deployed and there was no error

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory (Important: Red Hat Advanced Cluster Management 2.5 security updates, images, and bug fixes), and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

https://access.redhat.com/errata/RHSA-2022:4956

*** Bug 2101934 has been marked as a duplicate of this bug. ***