diff --git a/charts/apps/Chart.yaml b/charts/apps/Chart.yaml
index b9a0cd9f1..ed641880d 100644
--- a/charts/apps/Chart.yaml
+++ b/charts/apps/Chart.yaml
@@ -2,4 +2,4 @@ apiVersion: v2
 name: apps
 description: An argocd app to deploy apps inside the virtual cluster
 type: application
-version: 0.4.19
+version: 0.4.20
diff --git a/charts/apps/templates/kyverno-application.yaml b/charts/apps/templates/kyverno-application.yaml
index b5f9d2a67..ddc07d81c 100644
--- a/charts/apps/templates/kyverno-application.yaml
+++ b/charts/apps/templates/kyverno-application.yaml
@@ -32,5 +32,5 @@ spec:
       selfHeal: true
     syncOptions:
     - CreateNamespace=true
-    - Replace=true
+    - ServerSideApply=true
 {{- end }}