diff --git a/templates.fif.json b/templates.fif.json
index 41262367..e37ce1d5 100644
--- a/templates.fif.json
+++ b/templates.fif.json
@@ -140,7 +140,6 @@
             "settings": {
                 "CANNED": "1",
                 "PACKAGE_SET": "default",
-                "CONSOLE_INITIAL_SETUP": "1",
                 "TEST_TARGET": "ISO"
             },
             "version": "*"
@@ -152,7 +151,6 @@
             "settings": {
                 "CANNED": "1",
                 "PACKAGE_SET": "default",
-                "CONSOLE_INITIAL_SETUP": "1",
                 "TEST_TARGET": "ISO"
             },
             "version": "*"
diff --git a/tests/_console_wait_login.pm b/tests/_console_wait_login.pm
index b40a806b..cce247e2 100644
--- a/tests/_console_wait_login.pm
+++ b/tests/_console_wait_login.pm
@@ -15,10 +15,11 @@ sub run {
         $wait_time = 180;
     }
 
-    # handle initial-setup, if we're expecting it (the variable is set
-    # and this is an install test)
+    # handle initial-setup, if we're expecting it (IoT < F32 install test)
     my $testname = get_var("TEST");
-    if (get_var("CONSOLE_INITIAL_SETUP") && index($testname, 'install') != -1) {
+    my $subvariant = get_var("SUBVARIANT");
+    my $version = get_release_number;
+    if ($subvariant eq "IoT" && $version < 32 && index($testname, 'install') != -1) {
         assert_screen "console_initial_setup", $wait_time;
         type_string "q\n";
         type_string "yes\n";