diff --git a/templates/cluster-template-clusterclass-rke2.yaml b/templates/cluster-template-clusterclass-rke2.yaml
index c2d6b587a46..06e37e7779f 100644
--- a/templates/cluster-template-clusterclass-rke2.yaml
+++ b/templates/cluster-template-clusterclass-rke2.yaml
@@ -11,7 +11,7 @@ spec:
         kind: AzureMachineTemplate
         name: ${CLUSTER_NAME}-control-plane
     ref:
-      apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+      apiVersion: controlplane.cluster.x-k8s.io/v1beta2
       kind: RKE2ControlPlaneTemplate
       name: ${CLUSTER_NAME}-control-plane
   infrastructure:
@@ -58,7 +58,7 @@ spec:
               path: /etc/kubernetes/azure.json
               permissions: "0644"
       selector:
-        apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+        apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
         kind: RKE2ConfigTemplate
         matchResources:
           machineDeploymentClass:
@@ -79,7 +79,7 @@ spec:
             path: /etc/kubernetes/azure.json
             permissions: "0644"
       selector:
-        apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+        apiVersion: controlplane.cluster.x-k8s.io/v1beta2
         kind: RKE2ControlPlaneTemplate
         matchResources:
           controlPlane: true
@@ -103,7 +103,7 @@ spec:
       template:
         bootstrap:
           ref:
-            apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+            apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
             kind: RKE2ConfigTemplate
             name: ${CLUSTER_NAME}-worker
         infrastructure:
@@ -172,7 +172,7 @@ spec:
         diskSizeGB: 30
         osType: Linux
 ---
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+apiVersion: controlplane.cluster.x-k8s.io/v1beta2
 kind: RKE2ControlPlaneTemplate
 metadata:
   name: ${CLUSTER_NAME}-control-plane
@@ -200,7 +200,7 @@ spec:
           extraArgs:
           - --anonymous-auth=true
 ---
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
 kind: RKE2ConfigTemplate
 metadata:
   name: ${CLUSTER_NAME}-worker
diff --git a/templates/flavors/clusterclass-rke2/clusterclass.yaml b/templates/flavors/clusterclass-rke2/clusterclass.yaml
index 51dc29cb251..23d20e0a361 100644
--- a/templates/flavors/clusterclass-rke2/clusterclass.yaml
+++ b/templates/flavors/clusterclass-rke2/clusterclass.yaml
@@ -5,7 +5,7 @@ metadata:
 spec:
   controlPlane:
     ref:
-      apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+      apiVersion: controlplane.cluster.x-k8s.io/v1beta2
       kind: RKE2ControlPlaneTemplate
       name: ${CLUSTER_NAME}-control-plane
     machineInfrastructure:
@@ -24,7 +24,7 @@ spec:
         template:
           bootstrap:
             ref:
-              apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+              apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
               kind: RKE2ConfigTemplate
               name: ${CLUSTER_NAME}-worker
           infrastructure:
@@ -72,7 +72,7 @@ spec:
                 path: /etc/kubernetes/azure.json
                 permissions: "0644"
         selector:
-          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+          apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
           kind: RKE2ConfigTemplate
           matchResources:
             machineDeploymentClass:
@@ -81,7 +81,7 @@ spec:
     - name: azureMachineTemplate
       definitions:
         - selector:
-            apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+            apiVersion: controlplane.cluster.x-k8s.io/v1beta2
             kind: RKE2ControlPlaneTemplate
             matchResources:
               controlPlane: true
diff --git a/templates/flavors/clusterclass-rke2/rke2-config-template.yaml b/templates/flavors/clusterclass-rke2/rke2-config-template.yaml
index 5167ecf38da..b519fe67f2c 100644
--- a/templates/flavors/clusterclass-rke2/rke2-config-template.yaml
+++ b/templates/flavors/clusterclass-rke2/rke2-config-template.yaml
@@ -1,4 +1,4 @@
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
 kind: RKE2ConfigTemplate
 metadata:
   name: ${CLUSTER_NAME}-worker
diff --git a/templates/flavors/clusterclass-rke2/rke2-controlplane-template.yaml b/templates/flavors/clusterclass-rke2/rke2-controlplane-template.yaml
index 3414bb06971..0864af660fe 100644
--- a/templates/flavors/clusterclass-rke2/rke2-controlplane-template.yaml
+++ b/templates/flavors/clusterclass-rke2/rke2-controlplane-template.yaml
@@ -1,4 +1,4 @@
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+apiVersion: controlplane.cluster.x-k8s.io/v1beta2
 kind: RKE2ControlPlaneTemplate
 metadata:
   name: ${CLUSTER_NAME}-control-plane
diff --git a/templates/test/ci/cluster-template-prow-clusterclass-ci-rke2.yaml b/templates/test/ci/cluster-template-prow-clusterclass-ci-rke2.yaml
index a357a4360db..981a77f1139 100644
--- a/templates/test/ci/cluster-template-prow-clusterclass-ci-rke2.yaml
+++ b/templates/test/ci/cluster-template-prow-clusterclass-ci-rke2.yaml
@@ -11,7 +11,7 @@ spec:
         kind: AzureMachineTemplate
         name: ${CLUSTER_NAME}-control-plane
     ref:
-      apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+      apiVersion: controlplane.cluster.x-k8s.io/v1beta2
       kind: RKE2ControlPlaneTemplate
       name: ${CLUSTER_NAME}-control-plane
   infrastructure:
@@ -34,7 +34,7 @@ spec:
             path: /etc/kubernetes/azure.json
             permissions: "0644"
       selector:
-        apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+        apiVersion: controlplane.cluster.x-k8s.io/v1beta2
         kind: RKE2ControlPlaneTemplate
         matchResources:
           controlPlane: true
@@ -53,7 +53,7 @@ spec:
               path: /etc/kubernetes/azure.json
               permissions: "0644"
       selector:
-        apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+        apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
         kind: RKE2ConfigTemplate
         matchResources:
           machineDeploymentClass:
@@ -273,7 +273,7 @@ spec:
       template:
         bootstrap:
           ref:
-            apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+            apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
             kind: RKE2ConfigTemplate
             name: ${CLUSTER_NAME}-worker
         infrastructure:
@@ -282,7 +282,7 @@ spec:
             kind: AzureMachineTemplate
             name: ${CLUSTER_NAME}-worker
 ---
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+apiVersion: controlplane.cluster.x-k8s.io/v1beta2
 kind: RKE2ControlPlaneTemplate
 metadata:
   name: ${CLUSTER_NAME}-control-plane
@@ -372,7 +372,7 @@ spec:
         diskSizeGB: 30
         osType: Linux
 ---
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
 kind: RKE2ConfigTemplate
 metadata:
   name: ${CLUSTER_NAME}-worker
diff --git a/templates/test/ci/prow-clusterclass-ci-rke2/patches.yaml b/templates/test/ci/prow-clusterclass-ci-rke2/patches.yaml
index bbb1ffa37bf..f1ab02677b5 100644
--- a/templates/test/ci/prow-clusterclass-ci-rke2/patches.yaml
+++ b/templates/test/ci/prow-clusterclass-ci-rke2/patches.yaml
@@ -15,7 +15,7 @@ spec:
         template:
           bootstrap:
             ref:
-              apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+              apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
               kind: RKE2ConfigTemplate
               name: ${CLUSTER_NAME}-worker
           infrastructure:
@@ -27,7 +27,7 @@ spec:
     - name: controlPlaneAzureJsonSecretName
       definitions:
         - selector:
-            apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+            apiVersion: controlplane.cluster.x-k8s.io/v1beta2
             kind: RKE2ControlPlaneTemplate
             matchResources:
               controlPlane: true
@@ -46,7 +46,7 @@ spec:
     - name: workerAzureJsonSecretName
       definitions:
         - selector:
-            apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+            apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
             kind: RKE2ConfigTemplate
             matchResources:
               machineDeploymentClass:
diff --git a/templates/test/ci/prow-clusterclass-ci-rke2/rke2-config-template.yaml b/templates/test/ci/prow-clusterclass-ci-rke2/rke2-config-template.yaml
index 182f3275be5..e66d1ab5f81 100644
--- a/templates/test/ci/prow-clusterclass-ci-rke2/rke2-config-template.yaml
+++ b/templates/test/ci/prow-clusterclass-ci-rke2/rke2-config-template.yaml
@@ -1,4 +1,4 @@
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
 kind: RKE2ConfigTemplate
 metadata:
   name: ${CLUSTER_NAME}-worker
diff --git a/test/e2e/azure_test.go b/test/e2e/azure_test.go
index fcd9c58edd8..e76b8a293a1 100644
--- a/test/e2e/azure_test.go
+++ b/test/e2e/azure_test.go
@@ -1050,7 +1050,7 @@ var _ = Describe("Workload cluster creation", func() {
 			clusterName = getClusterName(clusterNamePrefix, "cc")
 
 			// Init rke2 CP and bootstrap providers
-			rke2Version := "v0.21.1"
+			rke2Version := "v0.24.3"
 			initInput := clusterctl.InitInput{
 				// pass reference to the management cluster hosting this test
 				KubeconfigPath: bootstrapClusterProxy.GetKubeconfigPath(),
@@ -1075,7 +1075,7 @@ var _ = Describe("Workload cluster creation", func() {
 			//
 			// If that issue is resolved then we can remove this workaround.
 			objects, err := yaml.ToUnstructured([]byte(`
-apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+apiVersion: controlplane.cluster.x-k8s.io/v1beta2
 kind: RKE2ControlPlaneTemplate
 metadata:
   name: dry-run
@@ -1085,7 +1085,7 @@ spec:
     spec:
       rolloutStrategy: {}
 ---
-apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta2
 kind: RKE2ConfigTemplate
 metadata:
   name: dry-run