diff --git a/docs/source/plugins.md b/docs/source/plugins.md
index fa79427ea..08d4ddd8f 100644
--- a/docs/source/plugins.md
+++ b/docs/source/plugins.md
@@ -220,7 +220,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
 values:
   hosts:
   - macAddress: 00:aa:bb:cc:dd
diff --git a/krm-functions/replacement-transformer/local-resource/example-use.yaml b/krm-functions/replacement-transformer/local-resource/example-use.yaml
index 3e148d71c..c71970b69 100644
--- a/krm-functions/replacement-transformer/local-resource/example-use.yaml
+++ b/krm-functions/replacement-transformer/local-resource/example-use.yaml
@@ -17,7 +17,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
   name: k8scontrol-versions-replacements
 replacements:
 # Replace the Kubernetes version in the KubeadmControlPlane
diff --git a/krm-functions/templater/local-resource/example-use.yaml b/krm-functions/templater/local-resource/example-use.yaml
index cc082407a..360e8fc82 100644
--- a/krm-functions/templater/local-resource/example-use.yaml
+++ b/krm-functions/templater/local-resource/example-use.yaml
@@ -15,7 +15,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
 values:
   hosts:
   - macAddress: 00:aa:bb:cc:dd
diff --git a/manifests/function/airshipctl-base-catalogues/env-vars-template.yaml b/manifests/function/airshipctl-base-catalogues/env-vars-template.yaml
index 257ac7a20..568f48496 100644
--- a/manifests/function/airshipctl-base-catalogues/env-vars-template.yaml
+++ b/manifests/function/airshipctl-base-catalogues/env-vars-template.yaml
@@ -7,7 +7,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
         envs:
           - HTTP_PROXY
           - HTTPS_PROXY
diff --git a/manifests/function/baremetal-operator/replacements/ironic-env-vars.yaml b/manifests/function/baremetal-operator/replacements/ironic-env-vars.yaml
index 794d565f0..880f030ec 100644
--- a/manifests/function/baremetal-operator/replacements/ironic-env-vars.yaml
+++ b/manifests/function/baremetal-operator/replacements/ironic-env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/function/baremetal-operator/replacements/networking.yaml b/manifests/function/baremetal-operator/replacements/networking.yaml
index 7fb0d41dc..ecd0ae278 100644
--- a/manifests/function/baremetal-operator/replacements/networking.yaml
+++ b/manifests/function/baremetal-operator/replacements/networking.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the pod & service networks
 - source:
diff --git a/manifests/function/baremetal-operator/replacements/versions.yaml b/manifests/function/baremetal-operator/replacements/versions.yaml
index efcb71a37..091dab14a 100644
--- a/manifests/function/baremetal-operator/replacements/versions.yaml
+++ b/manifests/function/baremetal-operator/replacements/versions.yaml
@@ -7,7 +7,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Container versions for the ironic Deployment
 - source:
diff --git a/manifests/function/clusterctl/replacements/versions.yaml b/manifests/function/clusterctl/replacements/versions.yaml
index 275d2184e..588c70a1a 100644
--- a/manifests/function/clusterctl/replacements/versions.yaml
+++ b/manifests/function/clusterctl/replacements/versions.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace capm3 versions
 - source:
diff --git a/manifests/function/ephemeral/replacements/ephemeral-env-vars.yaml b/manifests/function/ephemeral/replacements/ephemeral-env-vars.yaml
index a8ff71eb5..3aadb81d9 100644
--- a/manifests/function/ephemeral/replacements/ephemeral-env-vars.yaml
+++ b/manifests/function/ephemeral/replacements/ephemeral-env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/function/ephemeral/replacements/generated-secrets.yaml b/manifests/function/ephemeral/replacements/generated-secrets.yaml
index 6b4ee3515..d3d8d6507 100644
--- a/manifests/function/ephemeral/replacements/generated-secrets.yaml
+++ b/manifests/function/ephemeral/replacements/generated-secrets.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/ephemeral/replacements/networking.yaml b/manifests/function/ephemeral/replacements/networking.yaml
index be6cac4f9..8f2539c1a 100644
--- a/manifests/function/ephemeral/replacements/networking.yaml
+++ b/manifests/function/ephemeral/replacements/networking.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Substring-replace the ephemeral control plane's info
 - source:
diff --git a/manifests/function/flux/helm-controller/replacements/versions.yaml b/manifests/function/flux/helm-controller/replacements/versions.yaml
index fba48fc27..ba0b3ceea 100644
--- a/manifests/function/flux/helm-controller/replacements/versions.yaml
+++ b/manifests/function/flux/helm-controller/replacements/versions.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/flux/source-controller/replacements/env-vars.yaml b/manifests/function/flux/source-controller/replacements/env-vars.yaml
index e4abc6a3e..6fb9a8e00 100644
--- a/manifests/function/flux/source-controller/replacements/env-vars.yaml
+++ b/manifests/function/flux/source-controller/replacements/env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/function/flux/source-controller/replacements/versions.yaml b/manifests/function/flux/source-controller/replacements/versions.yaml
index 1a836b0a3..ed374eb3d 100644
--- a/manifests/function/flux/source-controller/replacements/versions.yaml
+++ b/manifests/function/flux/source-controller/replacements/versions.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/generate-secrets-example/README.md b/manifests/function/generate-secrets-example/README.md
index 98312274f..4120cc171 100644
--- a/manifests/function/generate-secrets-example/README.md
+++ b/manifests/function/generate-secrets-example/README.md
@@ -101,7 +101,7 @@ metadata:
 kustomizeSinkOutputDir: "target/generator/results/generated"
 spec:
   container:
-    image: quay.io/airshipit/templater:latest
+    image: quay.io/airshipit/templater:v2
 config: |
   foo: bar
 ```
diff --git a/manifests/function/generate-secrets-example/secret-generation.yaml b/manifests/function/generate-secrets-example/secret-generation.yaml
index 5c176f2bf..aa547d7c6 100644
--- a/manifests/function/generate-secrets-example/secret-generation.yaml
+++ b/manifests/function/generate-secrets-example/secret-generation.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
 values:
   clusterCa:
     cn: "Kubernetes API"
diff --git a/manifests/function/hardwareprofile-example/replacements/hosts.yaml b/manifests/function/hardwareprofile-example/replacements/hosts.yaml
index 974f10bad..3b61d1465 100644
--- a/manifests/function/hardwareprofile-example/replacements/hosts.yaml
+++ b/manifests/function/hardwareprofile-example/replacements/hosts.yaml
@@ -8,7 +8,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/helm-operator/replacements/helm-operator-env-vars.yaml b/manifests/function/helm-operator/replacements/helm-operator-env-vars.yaml
index 7c972dd81..ab0ee78f8 100644
--- a/manifests/function/helm-operator/replacements/helm-operator-env-vars.yaml
+++ b/manifests/function/helm-operator/replacements/helm-operator-env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/function/helm-operator/replacements/versions.yaml b/manifests/function/helm-operator/replacements/versions.yaml
index f9730ea5e..142e7dcc3 100644
--- a/manifests/function/helm-operator/replacements/versions.yaml
+++ b/manifests/function/helm-operator/replacements/versions.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/hostgenerator-m3/hosttemplate.yaml b/manifests/function/hostgenerator-m3/hosttemplate.yaml
index 5a51853e9..278913db7 100644
--- a/manifests/function/hostgenerator-m3/hosttemplate.yaml
+++ b/manifests/function/hostgenerator-m3/hosttemplate.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
 
 values:
   # hosts:
diff --git a/manifests/function/hostgenerator-m3/replacements/hosts.yaml b/manifests/function/hostgenerator-m3/replacements/hosts.yaml
index 24ce77325..4f13d219f 100644
--- a/manifests/function/hostgenerator-m3/replacements/hosts.yaml
+++ b/manifests/function/hostgenerator-m3/replacements/hosts.yaml
@@ -7,7 +7,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/hwcc/replacements/versions.yaml b/manifests/function/hwcc/replacements/versions.yaml
index 40880b84f..08480a82f 100644
--- a/manifests/function/hwcc/replacements/versions.yaml
+++ b/manifests/function/hwcc/replacements/versions.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/k8scontrol/replacements/cluster.yaml b/manifests/function/k8scontrol/replacements/cluster.yaml
index fdd9d3080..a1d99ed6c 100644
--- a/manifests/function/k8scontrol/replacements/cluster.yaml
+++ b/manifests/function/k8scontrol/replacements/cluster.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/function/k8scontrol/replacements/k8scontrol-env-vars.yaml b/manifests/function/k8scontrol/replacements/k8scontrol-env-vars.yaml
index b9445faa7..1978b149d 100644
--- a/manifests/function/k8scontrol/replacements/k8scontrol-env-vars.yaml
+++ b/manifests/function/k8scontrol/replacements/k8scontrol-env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/function/k8scontrol/replacements/networking.yaml b/manifests/function/k8scontrol/replacements/networking.yaml
index b0fba381e..10e02a86c 100644
--- a/manifests/function/k8scontrol/replacements/networking.yaml
+++ b/manifests/function/k8scontrol/replacements/networking.yaml
@@ -11,7 +11,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the pod & service networks
 - source:
diff --git a/manifests/function/k8scontrol/replacements/versions.yaml b/manifests/function/k8scontrol/replacements/versions.yaml
index 2cdde8e71..3d9d47341 100644
--- a/manifests/function/k8scontrol/replacements/versions.yaml
+++ b/manifests/function/k8scontrol/replacements/versions.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the Kubernetes version in the KubeadmControlPlane
 - source:
diff --git a/manifests/phases/executors.yaml b/manifests/phases/executors.yaml
index 6be16cac7..b97da5ab1 100644
--- a/manifests/phases/executors.yaml
+++ b/manifests/phases/executors.yaml
@@ -179,7 +179,7 @@ metadata:
     airshipit.org/deploy-k8s: "false"
 spec:
   type: krm
-  image: quay.io/airshipit/cloud-init:latest
+  image: quay.io/airshipit/cloud-init:v2
   mounts:
   - type: bind
     src: /srv/images
diff --git a/manifests/site/test-site/kubeconfig/update-target.yaml b/manifests/site/test-site/kubeconfig/update-target.yaml
index c0da036a8..3af7f8d78 100644
--- a/manifests/site/test-site/kubeconfig/update-target.yaml
+++ b/manifests/site/test-site/kubeconfig/update-target.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/manifests/site/test-site/target/generator/results/decrypt-secrets/configurable-decryption.yaml b/manifests/site/test-site/target/generator/results/decrypt-secrets/configurable-decryption.yaml
index c6b8f6b15..8cae7aeca 100644
--- a/manifests/site/test-site/target/generator/results/decrypt-secrets/configurable-decryption.yaml
+++ b/manifests/site/test-site/target/generator/results/decrypt-secrets/configurable-decryption.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
         envs:
         - TOLERATE_DECRYPTION_FAILURES
 template: |
diff --git a/manifests/site/test-site/target/workers/replacements/workers-env-vars.yaml b/manifests/site/test-site/target/workers/replacements/workers-env-vars.yaml
index ad79874ab..3d90acfd6 100644
--- a/manifests/site/test-site/target/workers/replacements/workers-env-vars.yaml
+++ b/manifests/site/test-site/target/workers/replacements/workers-env-vars.yaml
@@ -6,7 +6,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 # Replace the proxy vars
 - source:
diff --git a/manifests/type/gating/target/generator/secret-template.yaml b/manifests/type/gating/target/generator/secret-template.yaml
index 137b0cfb0..ef7eaff15 100644
--- a/manifests/type/gating/target/generator/secret-template.yaml
+++ b/manifests/type/gating/target/generator/secret-template.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       container:
-        image: quay.io/airshipit/templater:latest
+        image: quay.io/airshipit/templater:v2
 values:
   ephemeralCluster:
     ca:
diff --git a/manifests/type/gating/target/workload/ingress/replacements/versions.yaml b/manifests/type/gating/target/workload/ingress/replacements/versions.yaml
index 979d46a18..473a4b78b 100644
--- a/manifests/type/gating/target/workload/ingress/replacements/versions.yaml
+++ b/manifests/type/gating/target/workload/ingress/replacements/versions.yaml
@@ -5,7 +5,7 @@ metadata:
   annotations:
     config.kubernetes.io/function: |-
       container:
-        image: quay.io/airshipit/replacement-transformer:latest
+        image: quay.io/airshipit/replacement-transformer:v2
 replacements:
 - source:
     objref:
diff --git a/tools/deployment/update-krm-images b/tools/deployment/update-krm-images
index 3925f4a60..1830fa9f2 100755
--- a/tools/deployment/update-krm-images
+++ b/tools/deployment/update-krm-images
@@ -21,14 +21,17 @@ set -xe
 
 export MANIFEST_DIR=${MANIFEST_DIR:-"$(pwd)"}
 
-export OLD_REPLACEMENT_TRANSFORMER=${OLD_REPLACEMENT_TRANSFORMER:-"quay.io/airshipit/replacement-transformer:latest"}
-export OLD_TEMPLATER=${OLD_TEMPLATER:-"quay.io/airshipit/templater:latest"}
+export OLD_REPLACEMENT_TRANSFORMER=${OLD_REPLACEMENT_TRANSFORMER:-"quay.io/airshipit/replacement-transformer:v2"}
+export OLD_TEMPLATER=${OLD_TEMPLATER:-"quay.io/airshipit/templater:v2"}
+export OLD_CLOUD_INIT=${OLD_CLOUD_INIT:-"quay.io/airshipit/cloud-init:v2"}
 export OLD_SOPS=${OLD_SOPS:-"quay.io/aodinokov/sops:v0.0.3"}
 
 export NEW_REPLACEMENT_TRANSFORMER=${NEW_REPLACEMENT_TRANSFORMER:-$OLD_REPLACEMENT_TRANSFORMER}
 export NEW_TEMPLATER=${NEW_TEMPLATER:-$OLD_TEMPLATER}
+export NEW_CLOUD_INIT=${NEW_CLOUD_INIT:-$OLD_CLOUD_INIT}
 export NEW_SOPS=${NEW_SOPS:-$OLD_SOPS}
 
 find "$MANIFEST_DIR" -type f -exec sed -i -e "s#$OLD_REPLACEMENT_TRANSFORMER#$NEW_REPLACEMENT_TRANSFORMER#g" {} \;
 find "$MANIFEST_DIR" -type f -exec sed -i -e "s#$OLD_TEMPLATER#$NEW_TEMPLATER#g" {} \;
+find "$MANIFEST_DIR" -type f -exec sed -i -e "s#$OLD_CLOUD_INIT#$NEW_CLOUD_INIT#g" {} \;
 find "$MANIFEST_DIR" -type f -exec sed -i -e "s#$OLD_SOPS#$NEW_SOPS#g" {} \;