diff --git a/pkg/airgap/airgap.go b/pkg/airgap/airgap.go
index 5600e0c9e5..7de2044ba4 100644
--- a/pkg/airgap/airgap.go
+++ b/pkg/airgap/airgap.go
@@ -281,8 +281,14 @@ func CreateAppFromAirgap(opts CreateAirgapAppOpts) (finalError error) {
 	}
 
 	if status == storetypes.VersionPendingClusterManagement {
-		// if pending cluster management, we don't want to deploy the app
-		return nil
+		if configFile != "" {
+			// if there is a config file, then we should proceed with the installation normally, not wait for the user
+			// to click through the UI to add nodes and configure the app
+			status = storetypes.VersionPendingConfig
+		} else {
+			// if pending cluster management, we don't want to deploy the app
+			return nil
+		}
 	}
 
 	hasStrictPreflights, err := store.GetStore().HasStrictPreflights(a.ID, newSequence)
diff --git a/pkg/kotsadmconfig/config.go b/pkg/kotsadmconfig/config.go
index 3b335ffa38..100534ae3a 100644
--- a/pkg/kotsadmconfig/config.go
+++ b/pkg/kotsadmconfig/config.go
@@ -48,6 +48,7 @@ func IsUnsetItem(item kotsv1beta1.ConfigItem) bool {
 	return true
 }
 
+// NeedsConfiguration returns true if the app has required config values that are not set
 func NeedsConfiguration(appSlug string, sequence int64, isAirgap bool, kotsKinds *kotsutil.KotsKinds, registrySettings registrytypes.RegistrySettings) (bool, error) {
 	log := logger.NewCLILogger(os.Stdout)
 
@@ -166,6 +167,7 @@ func UpdateAppConfigValues(values map[string]kotsv1beta1.ConfigValue, configGrou
 	return values
 }
 
+// this is where config values that are passed to the install command are read from
 func ReadConfigValuesFromInClusterSecret() (string, error) {
 	log := logger.NewCLILogger(os.Stdout)
 
diff --git a/pkg/online/online.go b/pkg/online/online.go
index 0b707bcb27..7767874e45 100644
--- a/pkg/online/online.go
+++ b/pkg/online/online.go
@@ -220,8 +220,14 @@ func CreateAppFromOnline(opts CreateOnlineAppOpts) (_ *kotsutil.KotsKinds, final
 	}
 
 	if status == storetypes.VersionPendingClusterManagement {
-		// if pending cluster management, we don't want to deploy the app
-		return kotsKinds, nil
+		if configFile != "" {
+			// if there is a config file, then we should proceed with the installation normally, not wait for the user
+			// to click through the UI to add nodes and configure the app
+			status = storetypes.VersionPendingConfig
+		} else {
+			// if pending cluster management, we don't want to deploy the app
+			return kotsKinds, nil
+		}
 	}
 
 	hasStrictPreflights, err := store.GetStore().HasStrictPreflights(opts.PendingApp.ID, newSequence)
diff --git a/pkg/util/util.go b/pkg/util/util.go
index abe7e2bcb8..9924d4186a 100644
--- a/pkg/util/util.go
+++ b/pkg/util/util.go
@@ -161,7 +161,7 @@ func HomeDir() string {
 }
 
 func IsEmbeddedCluster() bool {
-	return os.Getenv("EMBEDDED_CLUSTER_ID") != ""
+	return EmbeddedClusterID() != ""
 }
 
 func EmbeddedClusterID() string {