diff --git a/lib/utils.pm b/lib/utils.pm
index d82923fe..97c2c681 100644
--- a/lib/utils.pm
+++ b/lib/utils.pm
@@ -666,8 +666,11 @@ sub _repo_setup_updates {
     # it on the actual support_server system)
     unless (get_var("TEST") eq "support_server" && $version ne get_var("CURRREL")) {
         assert_script_run 'printf "[advisory]\nname=Advisory repo\nbaseurl=file:///mnt/update_repo\nenabled=1\nmetadata_expire=3600\ngpgcheck=0" > /etc/yum.repos.d/advisory.repo';
-        # run an update now (except for upgrade or CANNED tests)
-        script_run "dnf -y update", 900 unless (get_var("UPGRADE") || get_var("CANNED"));
+        # run an update now, except for upgrade or install tests,
+        # where the updated packages should have been installed
+        # already and we want to fail if they weren't, or CANNED
+        # tests, there's no point updating the toolbox
+        script_run "dnf -y update", 900 unless (get_var("UPGRADE") || get_var("INSTALL") || get_var("CANNED"));
     }
     # exit the toolbox on CANNED
     if (get_var("CANNED")) {
diff --git a/templates.fif.json b/templates.fif.json
index d2120387..39e20700 100644
--- a/templates.fif.json
+++ b/templates.fif.json
@@ -860,7 +860,6 @@
             "settings": {
                 "PARTITIONING": "custom_blivet_resize_lvm",
                 "HDD_1": "disk_%FLAVOR%_%MACHINE%.qcow2",
-                "INSTALL": "1",
                 "POSTINSTALL": "disk_custom_resize_lvm_postinstall",
                 "ROOT_PASSWORD": "weakpassword",
                 "START_AFTER_TEST": "install_lvm_ext4"
@@ -875,7 +874,6 @@
             "settings": {
                 "PARTITIONING": "custom_resize_lvm",
                 "HDD_1": "disk_%FLAVOR%_%MACHINE%.qcow2",
-                "INSTALL": "1",
                 "ROOT_PASSWORD": "weakpassword",
                 "START_AFTER_TEST": "install_lvm_ext4"
             }
@@ -1453,7 +1451,6 @@
             },
             "settings": {
                 "PARTITIONING": "custom_btrfs_preserve_home",
-                "INSTALL": 1,
                 "ROOT_PASSWORD": "weakpassword",
                 "POSTINSTALL": "btrfs_preserve_home_check_content",
                 "HDD_1": "disk_f%CURRREL%_desktop_4_%ARCH%.qcow2"