diff --git a/pkg/action/install.go b/pkg/action/install.go
index 8dc6d84a2..b0dafe0ed 100644
--- a/pkg/action/install.go
+++ b/pkg/action/install.go
@@ -431,11 +431,15 @@ func (i *Install) RunWithContext(ctx context.Context, ch ci.Charter, vals map[st
 					kube.ClientCreateOptionDryRun(true),
 				)
 			} else if len(resources) > 0 {
+				updateThreeWayMergeForUnstructured := i.TakeOwnership && !i.ServerSideApply
 				_, err = i.cfg.KubeClient.Update(
 					toBeAdopted,
 					resources,
+					kube.ClientUpdateOptionForceReplace(i.ForceReplace),
 					kube.ClientUpdateOptionServerSideApply(i.ServerSideApply, i.ForceConflicts),
 					kube.ClientUpdateOptionDryRun(true),
+					kube.ClientUpdateOptionThreeWayMergeForUnstructured(updateThreeWayMergeForUnstructured),
+					kube.ClientUpdateOptionUpgradeClientSideFieldManager(true),
 				)
 			}
 			if err != nil {
diff --git a/pkg/action/upgrade.go b/pkg/action/upgrade.go
index ff8ff582a..bd94ca880 100644
--- a/pkg/action/upgrade.go
+++ b/pkg/action/upgrade.go
@@ -400,12 +400,14 @@ func (u *Upgrade) performUpgrade(ctx context.Context, originalRelease, upgradedR
 		u.cfg.Logger().Debug("dry run for release", "name", upgradedRelease.Name)
 		// For server-side dry-run, validate resources against the API server
 		if u.DryRunStrategy == DryRunServer {
+			upgradeClientSideFieldManager := isReleaseApplyMethodClientSideApply(originalRelease.ApplyMethod) && serverSideApply
 			_, err := u.cfg.KubeClient.Update(
 				current,
 				target,
 				kube.ClientUpdateOptionForceReplace(u.ForceReplace),
 				kube.ClientUpdateOptionServerSideApply(serverSideApply, u.ForceConflicts),
 				kube.ClientUpdateOptionDryRun(true),
+				kube.ClientUpdateOptionUpgradeClientSideFieldManager(upgradeClientSideFieldManager),
 			)
 			if err != nil {
 				return upgradedRelease, err