diff --git a/crates/alien-deploy-cli/src/commands/up.rs b/crates/alien-deploy-cli/src/commands/up.rs
index 792540e7f..8e0e474f8 100644
--- a/crates/alien-deploy-cli/src/commands/up.rs
+++ b/crates/alien-deploy-cli/src/commands/up.rs
@@ -371,6 +371,28 @@ mod tests {
         ));
     }
 
+    #[test]
+    fn hosted_compute_updates_cover_active_and_retryable_lifecycle_states() {
+        for status in [
+            "running",
+            "update-pending",
+            "updating",
+            "update-failed",
+            "refresh-failed",
+            "initial-setup",
+            "initial-setup-failed",
+            "provisioning",
+            "waiting-for-machines",
+            "provisioning-failed",
+        ] {
+            assert!(supports_hosted_compute_update(status), "{status}");
+        }
+
+        for status in ["pending", "delete-pending", "deleted"] {
+            assert!(!supports_hosted_compute_update(status), "{status}");
+        }
+    }
+
     #[test]
     fn stable_channel_accepts_exact_semver_tag() {
         assert_eq!(
@@ -1341,7 +1363,7 @@ pub async fn up_command(args: UpArgs, embedded_config: Option<&DeployCliConfig>)
 
     let hosted_platform =
         manager_url.trim_end_matches('/') != resolved.base_url.trim_end_matches('/');
-    if current_deployment.status == "running"
+    if supports_hosted_compute_update(&current_deployment.status)
         && init.deployment_model == DeploymentModel::Push
         && hosted_platform
         && stack_settings.compute.is_some()
@@ -2747,6 +2769,22 @@ fn has_explicit_non_compute_changes(
         || (telemetry && requested.telemetry != current.telemetry)
 }
 
+fn supports_hosted_compute_update(status: &str) -> bool {
+    matches!(
+        status,
+        "running"
+            | "update-pending"
+            | "updating"
+            | "update-failed"
+            | "refresh-failed"
+            | "initial-setup"
+            | "initial-setup-failed"
+            | "provisioning"
+            | "waiting-for-machines"
+            | "provisioning-failed"
+    )
+}
+
 async fn update_hosted_compute_settings(
     base_url: &str,
     token: &str,
diff --git a/crates/alien-deployment/src/updating.rs b/crates/alien-deployment/src/updating.rs
index 02b41d964..bf0101caf 100644
--- a/crates/alien-deployment/src/updating.rs
+++ b/crates/alien-deployment/src/updating.rs
@@ -165,13 +165,13 @@ pub async fn handle_update_pending(
         .as_ref()
         .and_then(|m| m.prepared_stack.as_ref())
         .or(current.current_release.as_ref().map(|r| &r.stack));
-
-    // Run deployment-time preflights: compatibility checks + mutations + runtime checks
-    // Store the mutated stack to use for the actual update and for future compatibility checks
     let target_release_id = current
         .target_release
         .as_ref()
         .and_then(|release| release.release_id.as_deref());
+
+    // Run deployment-time preflights: compatibility checks + mutations + runtime checks
+    // Store the mutated stack to use for the actual update and for future compatibility checks
     let setup_update_authorization = current
         .runtime_metadata
         .as_ref()
@@ -280,6 +280,27 @@ pub async fn handle_updating(
                 message: "Pending prepared stack not found in runtime metadata".to_string(),
             })
         })?;
+
+    // Frozen resources omitted by a newer release remain setup-owned and must
+    // not be deleted by an ordinary update. Keep their installed definitions
+    // in the execution target while allowing explicitly runtime-managed frozen
+    // resources (currently ComputeCluster capacity) to reconcile changed
+    // configuration through their management controller.
+    if let Some(installed_stack) = runtime_metadata.prepared_stack.as_ref() {
+        for (resource_id, entry) in installed_stack.resources() {
+            if entry.lifecycle == ResourceLifecycle::Frozen
+                && !target_stack.resources.contains_key(resource_id)
+            {
+                target_stack
+                    .resources
+                    .insert(resource_id.clone(), entry.clone());
+            }
+        }
+    }
+    // The effective target is the new durable baseline. Persist it before
+    // executor-only environment injection so a second release that also omits
+    // a setup-owned resource cannot lose ownership information and delete it.
+    runtime_metadata.pending_prepared_stack = Some(target_stack.clone());
     // Inject environment variables into the prepared stack
     crate::helpers::inject_environment_variables(&mut target_stack, &config, current.platform)?;
 
@@ -295,7 +316,7 @@ pub async fn handle_updating(
     // Sync secrets to vault before updating workload resources.
     // The vault is Running and secrets may have been updated
     // This checks the hash and only syncs if needed
-    info!("Syncing secrets to vault before updating live resources");
+    info!("Syncing secrets to vault before updating managed resources");
     let synced = crate::helpers::sync_secrets_to_vault(
         &target_stack,
         &stack_state,
@@ -314,7 +335,7 @@ pub async fn handle_updating(
     let executor = StackExecutor::builder(&target_stack, client_config)
         .deployment_config(&config)
         .running_resource_policy(RunningResourcePolicy::OptIn)
-        .lifecycle_filter(vec![ResourceLifecycle::Live])
+        .lifecycle_filter(vec![ResourceLifecycle::Live, ResourceLifecycle::Frozen])
         .service_provider(service_provider)
         .build()
         .context(ErrorData::StackExecutionFailed {
@@ -700,9 +721,8 @@ mod tests {
         );
     }
 
-    /// A setup-owned resource is excluded by the executor's lifecycle filter, so nothing will
-    /// ever reconcile it. Holding the update open until its recorded config matches the
-    /// declared one would never finish.
+    /// A resource not reported as reconciled by the executor cannot hold an
+    /// update open merely because its recorded configuration differs.
     #[test]
     fn a_resource_the_executor_does_not_reconcile_cannot_hold_the_update_open() {
         let declared = Kv::new("store".to_string()).build();
diff --git a/crates/alien-deployment/tests/test_platform.rs b/crates/alien-deployment/tests/test_platform.rs
index 74676c23e..f6dc0dd58 100644
--- a/crates/alien-deployment/tests/test_platform.rs
+++ b/crates/alien-deployment/tests/test_platform.rs
@@ -786,6 +786,96 @@ async fn setup_authorized_update_clears_authority_only_on_success() {
     );
 }
 
+#[tokio::test]
+async fn consecutive_updates_cannot_delete_an_omitted_frozen_resource() {
+    let config = create_test_config("hash_v1", false);
+    let mut state = run_to_completion(
+        create_initial_state(create_test_stack("test-stack", "test-function")),
+        config.clone(),
+    )
+    .await;
+    assert_eq!(state.status, DeploymentStatus::Running);
+
+    // Model setup-owned infrastructure imported alongside a release that does
+    // not declare it. This is the ownership shape the runtime must preserve.
+    let frozen = Storage::new("setup-storage".to_string()).build();
+    state
+        .runtime_metadata
+        .as_mut()
+        .and_then(|metadata| metadata.prepared_stack.as_mut())
+        .expect("running deployment has prepared stack")
+        .resources
+        .insert(
+            "setup-storage".to_string(),
+            ResourceEntry {
+                config: alien_core::Resource::new(frozen.clone()),
+                lifecycle: ResourceLifecycle::Frozen,
+                dependencies: Vec::new(),
+                remote_access: false,
+                enabled_when: None,
+            },
+        );
+    let mut frozen_state = alien_core::StackResourceState::new_pending(
+        "storage".to_string(),
+        alien_core::Resource::new(frozen),
+        Some(ResourceLifecycle::Frozen),
+        Vec::new(),
+    );
+    frozen_state.status = alien_core::ResourceStatus::Running;
+    frozen_state.internal_state = Some(serde_json::json!({
+        "type": "TestStorageController",
+        "_controllerStateVersion": 1,
+        "state": "ready",
+        "bucketName": "test-setup-storage",
+    }));
+    state
+        .stack_state
+        .as_mut()
+        .expect("running deployment has stack state")
+        .resources
+        .insert("setup-storage".to_string(), frozen_state);
+
+    for release_number in [2, 3] {
+        let mut target = create_test_stack("test-stack", "test-function");
+        target.permissions = state
+            .current_release
+            .as_ref()
+            .expect("running deployment has current release")
+            .stack
+            .permissions
+            .clone();
+        start_update(
+            &mut state,
+            ReleaseInfo {
+                release_id: Some(format!("rel_v{release_number}")),
+                version: Some(format!("{release_number}.0.0")),
+                description: None,
+                // Both later releases omit the setup-owned frozen resource.
+                stack: target,
+            },
+        );
+        state = run_to_completion(state, config.clone()).await;
+        assert_eq!(state.status, DeploymentStatus::Running);
+        assert_eq!(
+            state
+                .stack_state
+                .as_ref()
+                .and_then(|stack| stack.resources.get("setup-storage"))
+                .map(|resource| resource.status),
+            Some(alien_core::ResourceStatus::Running),
+            "release {release_number} must retain the installed frozen resource"
+        );
+        assert!(
+            state
+                .runtime_metadata
+                .as_ref()
+                .and_then(|metadata| metadata.prepared_stack.as_ref())
+                .is_some_and(|stack| stack.resources.contains_key("setup-storage")),
+            "release {release_number} must retain frozen ownership in the promoted baseline"
+        );
+    }
+}
+
 #[tokio::test]
 async fn update_completes_after_removed_resource_is_deleted() {
     let _vault_env = test_vault_env().await;
diff --git a/crates/alien-preflights/src/compatibility/frozen_resources_unchanged.rs b/crates/alien-preflights/src/compatibility/frozen_resources_unchanged.rs
index 9ab53ca43..1e4dd2bfb 100644
--- a/crates/alien-preflights/src/compatibility/frozen_resources_unchanged.rs
+++ b/crates/alien-preflights/src/compatibility/frozen_resources_unchanged.rs
@@ -1,6 +1,6 @@
 use crate::error::Result;
 use crate::{CheckResult, StackCompatibilityCheck};
-use alien_core::{ResourceLifecycle, Stack};
+use alien_core::{ComputeCluster, Resource, ResourceLifecycle, Stack};
 use std::collections::{HashMap, HashSet};
 
 /// Validates that frozen resources haven't been added or modified during stack updates.
@@ -12,6 +12,37 @@ use std::collections::{HashMap, HashSet};
 /// 3. Modifying frozen resources risks breaking security/permission models
 pub struct FrozenResourcesUnchangedCheck;
 
+/// Setup owns the ComputeCluster identity and network boundary, but its
+/// registered runtime controller deliberately owns fleet capacity. Keep this
+/// exception structural and narrow: changing groups, profiles, placement, or
+/// networking still requires setup.
+fn runtime_managed_frozen_change(old: &Resource, new: &Resource) -> bool {
+    let (Some(old_cluster), Some(new_cluster)) = (
+        old.downcast_ref::<ComputeCluster>(),
+        new.downcast_ref::<ComputeCluster>(),
+    ) else {
+        return false;
+    };
+    if old_cluster.capacity_groups.len() != new_cluster.capacity_groups.len() {
+        return false;
+    }
+
+    let mut normalized = old_cluster.clone();
+    for (old_group, new_group) in normalized
+        .capacity_groups
+        .iter_mut()
+        .zip(&new_cluster.capacity_groups)
+    {
+        if old_group.group_id != new_group.group_id {
+            return false;
+        }
+        old_group.min_size = new_group.min_size;
+        old_group.max_size = new_group.max_size;
+        old_group.scale_policy = new_group.scale_policy.clone();
+    }
+    normalized == *new_cluster
+}
+
 #[async_trait::async_trait]
 impl StackCompatibilityCheck for FrozenResourcesUnchangedCheck {
     fn description(&self) -> &'static str {
@@ -69,7 +100,9 @@ impl StackCompatibilityCheck for FrozenResourcesUnchangedCheck {
                 }
 
                 // Check if configuration changed (only check if still frozen)
-                if old_entry.config != new_entry.config {
+                if old_entry.config != new_entry.config
+                    && !runtime_managed_frozen_change(&old_entry.config, &new_entry.config)
+                {
                     errors.push(format!(
                         "Frozen resource '{}' was modified. \
                          Frozen resources are setup-owned. Rerun setup with the updated stack.",
@@ -92,7 +125,9 @@ impl StackCompatibilityCheck for FrozenResourcesUnchangedCheck {
 mod tests {
     use super::*;
     use alien_core::permissions::PermissionsConfig;
-    use alien_core::{Resource, ResourceEntry, ResourceLifecycle, Stack, Storage};
+    use alien_core::{
+        CapacityGroup, ComputeCluster, Resource, ResourceEntry, ResourceLifecycle, Stack, Storage,
+    };
     use indexmap::IndexMap;
 
     #[tokio::test]
@@ -357,4 +392,63 @@ mod tests {
         assert!(result.success);
         assert!(result.errors.is_empty());
     }
+
+    fn compute_stack(cluster: ComputeCluster) -> Stack {
+        let mut resources = IndexMap::new();
+        resources.insert(
+            "compute".to_string(),
+            ResourceEntry {
+                config: Resource::new(cluster),
+                lifecycle: ResourceLifecycle::Frozen,
+                dependencies: vec![],
+                remote_access: false,
+                enabled_when: None,
+            },
+        );
+        Stack {
+            id: "test-stack".to_string(),
+            resources,
+            permissions: PermissionsConfig::new(),
+            supported_platforms: None,
+            inputs: vec![],
+        }
+    }
+
+    fn compute_cluster(size: u32) -> ComputeCluster {
+        ComputeCluster::new("compute".to_string())
+            .capacity_group(CapacityGroup {
+                group_id: "workers".to_string(),
+                instance_type: Some("m8i.2xlarge".to_string()),
+                profile: None,
+                min_size: size,
+                max_size: size,
+                scale_policy: None,
+                nested_virtualization: Some(true),
+            })
+            .build()
+    }
+
+    #[tokio::test]
+    async fn compute_capacity_is_runtime_manageable() {
+        let result = FrozenResourcesUnchangedCheck
+            .check(
+                &compute_stack(compute_cluster(2)),
+                &compute_stack(compute_cluster(3)),
+            )
+            .await
+            .unwrap();
+        assert!(result.success, "{:?}", result.errors);
+    }
+
+    #[tokio::test]
+    async fn compute_boundary_change_remains_frozen() {
+        let old = compute_cluster(2);
+        let mut changed = compute_cluster(2);
+        changed.capacity_groups[0].instance_type = Some("m8i.4xlarge".to_string());
+        let result = FrozenResourcesUnchangedCheck
+            .check(&compute_stack(old), &compute_stack(changed))
+            .await
+            .unwrap();
+        assert!(!result.success);
+    }
 }