diff --git a/pkg/app/app.go b/pkg/app/app.go
index 3d95ab97..d8858717 100644
--- a/pkg/app/app.go
+++ b/pkg/app/app.go
@@ -2323,7 +2323,7 @@ func (a *App) withNeeds(r *Run, c DAGConfig, includeDisabled bool, f func(*state
 		SelectedReleases:       selectedReleases,
 		IncludeNeeds:           false,
 		IncludeTransitiveNeeds: false,
-		SkipNeeds:              c.SkipNeeds(),
+		SkipNeeds:              c.SkipNeeds() || includeNeeds,
 	})
 
 	if err != nil {
diff --git a/pkg/app/app_diff_test.go b/pkg/app/app_diff_test.go
index 5b9e8d0b..e888ee19 100644
--- a/pkg/app/app_diff_test.go
+++ b/pkg/app/app_diff_test.go
@@ -175,8 +175,6 @@ releases:
 			error:     ``,
 			selectors: []string{"app=test"},
 			diffed: []exectest.Release{
-				// TODO: Turned out we can't differentiate needs vs transitive needs in this case :thinking:
-				{Name: "logging", Flags: []string{"--kube-context", "default", "--namespace", "kube-system", "--reset-values"}},
 				{Name: "kubernetes-external-secrets", Flags: []string{"--kube-context", "default", "--namespace", "kube-system", "--reset-values"}},
 				{Name: "external-secrets", Flags: []string{"--kube-context", "default", "--namespace", "default", "--reset-values"}},
 				{Name: "my-release", Flags: []string{"--kube-context", "default", "--namespace", "default", "--reset-values"}},
diff --git a/pkg/app/app_lint_test.go b/pkg/app/app_lint_test.go
index f9b10836..6aa3f36b 100644
--- a/pkg/app/app_lint_test.go
+++ b/pkg/app/app_lint_test.go
@@ -1,21 +1,18 @@
 package app
 
 import (
-	"os"
-	"path/filepath"
-	"strings"
 	"sync"
 	"testing"
 
 	"github.com/google/go-cmp/cmp"
 	"github.com/helmfile/vals"
-	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	"go.uber.org/zap"
 
 	"github.com/helmfile/helmfile/pkg/exectest"
 	ffs "github.com/helmfile/helmfile/pkg/filesystem"
 	"github.com/helmfile/helmfile/pkg/helmexec"
+	"github.com/helmfile/helmfile/pkg/testhelper"
 )
 
 func TestLint(t *testing.T) {
@@ -144,30 +141,7 @@ releases:
 			require.Equal(t, wantLints, helm.Linted)
 		})
 
-		testNameComponents := strings.Split(t.Name(), "/")
-		testBaseName := strings.ToLower(
-			strings.ReplaceAll(
-				testNameComponents[len(testNameComponents)-1],
-				" ",
-				"_",
-			),
-		)
-		wantLogFileDir := filepath.Join("testdata", "app_lint_test")
-		wantLogFile := filepath.Join(wantLogFileDir, testBaseName)
-		wantLogData, err := os.ReadFile(wantLogFile)
-		updateLogFile := err != nil
-		wantLog := string(wantLogData)
-		gotLog := bs.String()
-		if updateLogFile {
-			if err := os.MkdirAll(wantLogFileDir, 0755); err != nil {
-				t.Fatalf("unable to create directory %q: %v", wantLogFileDir, err)
-			}
-			if err := os.WriteFile(wantLogFile, bs.Bytes(), 0644); err != nil {
-				t.Fatalf("unable to update lint log snapshot: %v", err)
-			}
-		}
-
-		assert.Equal(t, wantLog, gotLog)
+		testhelper.RequireLog(t, "app_lint_test", bs)
 	}
 
 	t.Run("fail on unselected need by default", func(t *testing.T) {
@@ -199,8 +173,6 @@ releases:
 			error:     ``,
 			selectors: []string{"app=test"},
 			linted: []exectest.Release{
-				// TODO: Turned out we can't differentiate needs vs transitive needs in this case :thinking:
-				{Name: "logging", Flags: []string{"--namespace", "kube-system"}},
 				{Name: "kubernetes-external-secrets", Flags: []string{"--namespace", "kube-system"}},
 				{Name: "external-secrets", Flags: []string{"--namespace", "default"}},
 				{Name: "my-release", Flags: []string{"--namespace", "default"}},
diff --git a/pkg/app/app_template_test.go b/pkg/app/app_template_test.go
index f2e5f50c..eabed44c 100644
--- a/pkg/app/app_template_test.go
+++ b/pkg/app/app_template_test.go
@@ -206,8 +206,6 @@ releases:
 			selectors: []string{"app=test"},
 			// Issue #2309: --kube-context is now added to template flags
 			templated: []exectest.Release{
-				// TODO: Turned out we can't differentiate needs vs transitive needs in this case :thinking:
-				{Name: "logging", Flags: []string{"--kube-context", "default", "--namespace", "kube-system"}},
 				{Name: "kubernetes-external-secrets", Flags: []string{"--kube-context", "default", "--namespace", "kube-system"}},
 				{Name: "external-secrets", Flags: []string{"--kube-context", "default", "--namespace", "default"}},
 				{Name: "my-release", Flags: []string{"--kube-context", "default", "--namespace", "default"}},
diff --git a/pkg/app/testdata/app_diff_test/include-needs b/pkg/app/testdata/app_diff_test/include-needs
index 2e043346..ed985d09 100644
--- a/pkg/app/testdata/app_diff_test/include-needs
+++ b/pkg/app/testdata/app_diff_test/include-needs
@@ -2,14 +2,12 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 2 release(s) matching app=test found in helmfile.yaml
 
-processing 4 groups of releases in this order:
+processing 3 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/logging
-2     default/kube-system/kubernetes-external-secrets
-3     default/default/external-secrets
-4     default/default/my-release
+1     default/kube-system/kubernetes-external-secrets
+2     default/default/external-secrets
+3     default/default/my-release
 
-processing releases in group 1/4: default/kube-system/logging
-processing releases in group 2/4: default/kube-system/kubernetes-external-secrets
-processing releases in group 3/4: default/default/external-secrets
-processing releases in group 4/4: default/default/my-release
+processing releases in group 1/3: default/kube-system/kubernetes-external-secrets
+processing releases in group 2/3: default/default/external-secrets
+processing releases in group 3/3: default/default/my-release
diff --git a/pkg/app/testdata/app_diff_test/include-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_diff_test/include-needs_should_not_fail_on_disabled_transitive_need
index 374768b4..b8b28277 100644
--- a/pkg/app/testdata/app_diff_test/include-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_diff_test/include-needs_should_not_fail_on_disabled_transitive_need
@@ -2,16 +2,11 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-Affected releases are:
-  disabled (incubator/raw) DELETED
-
diff --git a/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need b/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
index 538e191f..b6c63520 100644
--- a/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
+++ b/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
@@ -2,13 +2,11 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test2 found in helmfile.yaml
 
-processing 2 groups of releases in this order:
+processing 1 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
+1     default//test2
 
-processing releases in group 1/2: default/kube-system/disabled
-processing releases in group 2/2: default//test2
+processing releases in group 1/1: default//test2
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 Affected releases are:
   disabled (incubator/raw) DELETED
diff --git a/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
index 374768b4..94cc476c 100644
--- a/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_diff_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -2,15 +2,13 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 Affected releases are:
   disabled (incubator/raw) DELETED
diff --git a/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
index 374768b4..94cc476c 100644
--- a/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -2,15 +2,13 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 Affected releases are:
   disabled (incubator/raw) DELETED
diff --git a/pkg/app/testdata/app_diff_test_1/bar_is_disabled b/pkg/app/testdata/app_diff_test_1/bar_is_disabled
index c28d87bc..bf059104 100644
--- a/pkg/app/testdata/app_diff_test_1/bar_is_disabled
+++ b/pkg/app/testdata/app_diff_test_1/bar_is_disabled
@@ -3,10 +3,10 @@ merged environment: &{default  map[] map[] map[]}
 
 processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/ns1/bar
+1     default/ns1/bar, default/ns2/bar
 2     default/ns1/foo
 
-processing releases in group 1/2: default/ns1/bar
+processing releases in group 1/2: default/ns1/bar, default/ns2/bar
 processing releases in group 2/2: default/ns1/foo
 Affected releases are:
   bar (mychart2) DELETED
diff --git a/pkg/app/testdata/app_diff_test_1/delete_bar_when_bar_needs_foo b/pkg/app/testdata/app_diff_test_1/delete_bar_when_bar_needs_foo
index 2e1dadd2..cf7dd6b4 100644
--- a/pkg/app/testdata/app_diff_test_1/delete_bar_when_bar_needs_foo
+++ b/pkg/app/testdata/app_diff_test_1/delete_bar_when_bar_needs_foo
@@ -1,11 +1,13 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//foo
+2     default//bar
 
-processing releases in group 1/1: default//foo
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
 Affected releases are:
   bar (mychart2) DELETED
   foo (mychart1) UPDATED
diff --git a/pkg/app/testdata/app_diff_test_1/delete_bar_when_foo_needs_bar_with_skip-needs b/pkg/app/testdata/app_diff_test_1/delete_bar_when_foo_needs_bar_with_skip-needs
index 423dcd31..d0e53b18 100644
--- a/pkg/app/testdata/app_diff_test_1/delete_bar_when_foo_needs_bar_with_skip-needs
+++ b/pkg/app/testdata/app_diff_test_1/delete_bar_when_foo_needs_bar_with_skip-needs
@@ -2,11 +2,13 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release foo needs bar, but bar is not installed due to installed: false. Either mark bar as installed or remove bar from foo's needs
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default//foo
+1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//foo
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
 WARNING: release foo needs bar, but bar is not installed due to installed: false. Either mark bar as installed or remove bar from foo's needs
 Affected releases are:
   bar (mychart2) DELETED
diff --git a/pkg/app/testdata/app_diff_test_1/delete_foo_when_bar_needs_foo_with_skip-needs b/pkg/app/testdata/app_diff_test_1/delete_foo_when_bar_needs_foo_with_skip-needs
index 66b8126d..3ba64bfa 100644
--- a/pkg/app/testdata/app_diff_test_1/delete_foo_when_bar_needs_foo_with_skip-needs
+++ b/pkg/app/testdata/app_diff_test_1/delete_foo_when_bar_needs_foo_with_skip-needs
@@ -2,11 +2,13 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release bar needs foo, but foo is not installed due to installed: false. Either mark foo as installed or remove foo from bar's needs
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default//bar
+1     default//foo
+2     default//bar
 
-processing releases in group 1/1: default//bar
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
 WARNING: release bar needs foo, but foo is not installed due to installed: false. Either mark foo as installed or remove foo from bar's needs
 Affected releases are:
   bar (mychart2) UPDATED
diff --git a/pkg/app/testdata/app_diff_test_1/delete_foo_when_foo_needs_bar b/pkg/app/testdata/app_diff_test_1/delete_foo_when_foo_needs_bar
index 41b61c6b..0489bb59 100644
--- a/pkg/app/testdata/app_diff_test_1/delete_foo_when_foo_needs_bar
+++ b/pkg/app/testdata/app_diff_test_1/delete_foo_when_foo_needs_bar
@@ -1,11 +1,13 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//bar
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
 Affected releases are:
   bar (mychart2) UPDATED
   foo (mychart1) DELETED
diff --git a/pkg/app/testdata/app_diff_test_1/noop b/pkg/app/testdata/app_diff_test_1/noop
index fadc03f0..108de434 100644
--- a/pkg/app/testdata/app_diff_test_1/noop
+++ b/pkg/app/testdata/app_diff_test_1/noop
@@ -1,9 +1,11 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//bar
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
 No affected releases
diff --git a/pkg/app/testdata/app_diff_test_1/smoke b/pkg/app/testdata/app_diff_test_1/smoke
index 796556ee..43f15041 100644
--- a/pkg/app/testdata/app_diff_test_1/smoke
+++ b/pkg/app/testdata/app_diff_test_1/smoke
@@ -6,14 +6,14 @@ GROUP RELEASES
 1     default//logging, default//front-proxy
 2     default//database, default//servicemesh
 3     default//anotherbackend
-4     default//backend-v2
-5     default//frontend-v2, default//frontend-v3
+4     default//backend-v1, default//backend-v2
+5     default//frontend-v1, default//frontend-v2, default//frontend-v3
 
 processing releases in group 1/5: default//logging, default//front-proxy
 processing releases in group 2/5: default//database, default//servicemesh
 processing releases in group 3/5: default//anotherbackend
-processing releases in group 4/5: default//backend-v2
-processing releases in group 5/5: default//frontend-v2, default//frontend-v3
+processing releases in group 4/5: default//backend-v1, default//backend-v2
+processing releases in group 5/5: default//frontend-v1, default//frontend-v2, default//frontend-v3
 Affected releases are:
   anotherbackend (charts/anotherbackend) UPDATED
   backend-v1 (charts/backend) DELETED
diff --git a/pkg/app/testdata/app_diff_test_2/delete_bar_when_bar_needs_foo b/pkg/app/testdata/app_diff_test_2/delete_bar_when_bar_needs_foo
index 1f7d1f93..332e08fd 100644
--- a/pkg/app/testdata/app_diff_test_2/delete_bar_when_bar_needs_foo
+++ b/pkg/app/testdata/app_diff_test_2/delete_bar_when_bar_needs_foo
@@ -1,11 +1,13 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     foo
+2     bar
 
-processing releases in group 1/1: foo
+processing releases in group 1/2: foo
+processing releases in group 2/2: bar
 Affected releases are:
   bar (mychart2) DELETED
   foo (mychart1) UPDATED
diff --git a/pkg/app/testdata/app_diff_test_2/delete_bar_when_foo_needs_bar_with_skip-needs b/pkg/app/testdata/app_diff_test_2/delete_bar_when_foo_needs_bar_with_skip-needs
index a6718797..0df4dc20 100644
--- a/pkg/app/testdata/app_diff_test_2/delete_bar_when_foo_needs_bar_with_skip-needs
+++ b/pkg/app/testdata/app_diff_test_2/delete_bar_when_foo_needs_bar_with_skip-needs
@@ -2,11 +2,13 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release foo needs bar, but bar is not installed due to installed: false. Either mark bar as installed or remove bar from foo's needs
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     foo
+1     bar
+2     foo
 
-processing releases in group 1/1: foo
+processing releases in group 1/2: bar
+processing releases in group 2/2: foo
 WARNING: release foo needs bar, but bar is not installed due to installed: false. Either mark bar as installed or remove bar from foo's needs
 Affected releases are:
   bar (mychart2) DELETED
diff --git a/pkg/app/testdata/app_diff_test_2/delete_foo_when_foo_needs_bar b/pkg/app/testdata/app_diff_test_2/delete_foo_when_foo_needs_bar
index dddea730..930bcaca 100644
--- a/pkg/app/testdata/app_diff_test_2/delete_foo_when_foo_needs_bar
+++ b/pkg/app/testdata/app_diff_test_2/delete_foo_when_foo_needs_bar
@@ -1,11 +1,13 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     bar
+2     foo
 
-processing releases in group 1/1: bar
+processing releases in group 1/2: bar
+processing releases in group 2/2: foo
 Affected releases are:
   bar (mychart2) UPDATED
   foo (mychart1) DELETED
diff --git a/pkg/app/testdata/app_diff_test_2/noop b/pkg/app/testdata/app_diff_test_2/noop
index 937ee995..5c602c2e 100644
--- a/pkg/app/testdata/app_diff_test_2/noop
+++ b/pkg/app/testdata/app_diff_test_2/noop
@@ -1,9 +1,11 @@
 merged environment: &{default  map[] map[] map[]}
 2 release(s) found in helmfile.yaml
 
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     bar
+2     foo
 
-processing releases in group 1/1: bar
+processing releases in group 1/2: bar
+processing releases in group 2/2: foo
 No affected releases
diff --git a/pkg/app/testdata/app_diff_test_2/smoke b/pkg/app/testdata/app_diff_test_2/smoke
index c2fc529f..b2b45fde 100644
--- a/pkg/app/testdata/app_diff_test_2/smoke
+++ b/pkg/app/testdata/app_diff_test_2/smoke
@@ -6,14 +6,14 @@ GROUP RELEASES
 1     logging, front-proxy
 2     database, servicemesh
 3     anotherbackend
-4     backend-v2
-5     frontend-v2, frontend-v3
+4     backend-v1, backend-v2
+5     frontend-v1, frontend-v2, frontend-v3
 
 processing releases in group 1/5: logging, front-proxy
 processing releases in group 2/5: database, servicemesh
 processing releases in group 3/5: anotherbackend
-processing releases in group 4/5: backend-v2
-processing releases in group 5/5: frontend-v2, frontend-v3
+processing releases in group 4/5: backend-v1, backend-v2
+processing releases in group 5/5: frontend-v1, frontend-v2, frontend-v3
 Affected releases are:
   anotherbackend (charts/anotherbackend) UPDATED
   backend-v1 (charts/backend) DELETED
diff --git a/pkg/app/testdata/app_lint_test/include-needs b/pkg/app/testdata/app_lint_test/include-needs
index 2e043346..ed985d09 100644
--- a/pkg/app/testdata/app_lint_test/include-needs
+++ b/pkg/app/testdata/app_lint_test/include-needs
@@ -2,14 +2,12 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 2 release(s) matching app=test found in helmfile.yaml
 
-processing 4 groups of releases in this order:
+processing 3 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/logging
-2     default/kube-system/kubernetes-external-secrets
-3     default/default/external-secrets
-4     default/default/my-release
+1     default/kube-system/kubernetes-external-secrets
+2     default/default/external-secrets
+3     default/default/my-release
 
-processing releases in group 1/4: default/kube-system/logging
-processing releases in group 2/4: default/kube-system/kubernetes-external-secrets
-processing releases in group 3/4: default/default/external-secrets
-processing releases in group 4/4: default/default/my-release
+processing releases in group 1/3: default/kube-system/kubernetes-external-secrets
+processing releases in group 2/3: default/default/external-secrets
+processing releases in group 3/3: default/default/my-release
diff --git a/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_direct_need b/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_direct_need
index 3c08554b..3c22226f 100644
--- a/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_direct_need
+++ b/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_direct_need
@@ -2,10 +2,8 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test2 found in helmfile.yaml
 
-processing 2 groups of releases in this order:
+processing 1 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
+1     default//test2
 
-processing releases in group 1/2: default/kube-system/disabled
-processing releases in group 2/2: default//test2
+processing releases in group 1/1: default//test2
diff --git a/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_transitive_need
index 8f55648a..3a218076 100644
--- a/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_lint_test/include-needs_should_not_fail_on_disabled_transitive_need
@@ -2,12 +2,10 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
diff --git a/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need b/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
index 3c08554b..3c22226f 100644
--- a/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
+++ b/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_direct_need
@@ -2,10 +2,8 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test2 found in helmfile.yaml
 
-processing 2 groups of releases in this order:
+processing 1 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
+1     default//test2
 
-processing releases in group 1/2: default/kube-system/disabled
-processing releases in group 2/2: default//test2
+processing releases in group 1/1: default//test2
diff --git a/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
index 8f55648a..3a218076 100644
--- a/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_lint_test/include-needs_with_include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -2,12 +2,10 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
diff --git a/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
index 8f55648a..3a218076 100644
--- a/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -2,12 +2,10 @@ merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
 1 release(s) matching name=test3 found in helmfile.yaml
 
-processing 3 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/kube-system/disabled
-2     default//test2
-3     default//test3
+1     default//test2
+2     default//test3
 
-processing releases in group 1/3: default/kube-system/disabled
-processing releases in group 2/3: default//test2
-processing releases in group 3/3: default//test3
+processing releases in group 1/2: default//test2
+processing releases in group 2/2: default//test3
diff --git a/pkg/app/testdata/testapply/delete_bar_when_bar_needs_foo/log b/pkg/app/testdata/testapply/delete_bar_when_bar_needs_foo/log
index 3adeaeab..602459d2 100644
--- a/pkg/app/testdata/testapply/delete_bar_when_bar_needs_foo/log
+++ b/pkg/app/testdata/testapply/delete_bar_when_bar_needs_foo/log
@@ -12,16 +12,20 @@ GROUP RELEASES
 
 invoking preapply hooks for releases in group 1/2: default//bar
 invoking preapply hooks for releases in group 2/2: default//foo
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//bar
-processing 1 groups of releases in this order:
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//foo
+2     default//bar
 
-processing releases in group 1/1: default//foo
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
 
 UPDATED RELEASES:
 NAME   NAMESPACE   CHART             VERSION   DURATION
diff --git a/pkg/app/testdata/testapply/delete_bar_when_foo_needs_bar/log b/pkg/app/testdata/testapply/delete_bar_when_foo_needs_bar/log
index c4da6734..cd450481 100644
--- a/pkg/app/testdata/testapply/delete_bar_when_foo_needs_bar/log
+++ b/pkg/app/testdata/testapply/delete_bar_when_foo_needs_bar/log
@@ -14,16 +14,20 @@ GROUP RELEASES
 
 invoking preapply hooks for releases in group 1/2: default//foo
 invoking preapply hooks for releases in group 2/2: default//bar
-processing 1 groups of releases in this order:
-GROUP RELEASES
-1     default//bar
-
-processing releases in group 1/1: default//bar
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//foo
+2     default//bar
 
-processing releases in group 1/1: default//foo
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
+processing 2 groups of releases in this order:
+GROUP RELEASES
+1     default//bar
+2     default//foo
+
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
 WARNING: release foo needs bar, but bar is not installed due to installed: false. Either mark bar as installed or remove bar from foo's needs
 
 UPDATED RELEASES:
diff --git a/pkg/app/testdata/testapply/delete_foo_when_bar_needs_foo/log b/pkg/app/testdata/testapply/delete_foo_when_bar_needs_foo/log
index 5b557587..97c1bc1c 100644
--- a/pkg/app/testdata/testapply/delete_foo_when_bar_needs_foo/log
+++ b/pkg/app/testdata/testapply/delete_foo_when_bar_needs_foo/log
@@ -14,16 +14,20 @@ GROUP RELEASES
 
 invoking preapply hooks for releases in group 1/2: default//bar
 invoking preapply hooks for releases in group 2/2: default//foo
-processing 1 groups of releases in this order:
-GROUP RELEASES
-1     default//foo
-
-processing releases in group 1/1: default//foo
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//bar
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
+processing 2 groups of releases in this order:
+GROUP RELEASES
+1     default//foo
+2     default//bar
+
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
 WARNING: release bar needs foo, but foo is not installed due to installed: false. Either mark foo as installed or remove foo from bar's needs
 
 UPDATED RELEASES:
diff --git a/pkg/app/testdata/testapply/delete_foo_when_foo_needs_bar/log b/pkg/app/testdata/testapply/delete_foo_when_foo_needs_bar/log
index 659b1fd2..0c2af781 100644
--- a/pkg/app/testdata/testapply/delete_foo_when_foo_needs_bar/log
+++ b/pkg/app/testdata/testapply/delete_foo_when_foo_needs_bar/log
@@ -12,16 +12,20 @@ GROUP RELEASES
 
 invoking preapply hooks for releases in group 1/2: default//foo
 invoking preapply hooks for releases in group 2/2: default//bar
-processing 1 groups of releases in this order:
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//foo
+2     default//bar
 
-processing releases in group 1/1: default//foo
-processing 1 groups of releases in this order:
+processing releases in group 1/2: default//foo
+processing releases in group 2/2: default//bar
+processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default//bar
+2     default//foo
 
-processing releases in group 1/1: default//bar
+processing releases in group 1/2: default//bar
+processing releases in group 2/2: default//foo
 
 UPDATED RELEASES:
 NAME   NAMESPACE   CHART             VERSION   DURATION
diff --git a/pkg/app/testdata/testapply/smoke/log b/pkg/app/testdata/testapply/smoke/log
index 2daeed71..86afb0e8 100644
--- a/pkg/app/testdata/testapply/smoke/log
+++ b/pkg/app/testdata/testapply/smoke/log
@@ -25,26 +25,32 @@ invoking preapply hooks for releases in group 2/5: default//backend-v1, default/
 invoking preapply hooks for releases in group 3/5: default//anotherbackend
 invoking preapply hooks for releases in group 4/5: default//database, default//servicemesh
 invoking preapply hooks for releases in group 5/5: default//logging, default//front-proxy
-processing 2 groups of releases in this order:
+processing 5 groups of releases in this order:
 GROUP RELEASES
-1     default//frontend-v1
-2     default//backend-v1
+1     default//frontend-v1, default//frontend-v2, default//frontend-v3
+2     default//backend-v1, default//backend-v2
+3     default//anotherbackend
+4     default//database, default//servicemesh
+5     default//logging, default//front-proxy
 
-processing releases in group 1/2: default//frontend-v1
-processing releases in group 2/2: default//backend-v1
+processing releases in group 1/5: default//frontend-v1, default//frontend-v2, default//frontend-v3
+processing releases in group 2/5: default//backend-v1, default//backend-v2
+processing releases in group 3/5: default//anotherbackend
+processing releases in group 4/5: default//database, default//servicemesh
+processing releases in group 5/5: default//logging, default//front-proxy
 processing 5 groups of releases in this order:
 GROUP RELEASES
 1     default//logging, default//front-proxy
 2     default//database, default//servicemesh
 3     default//anotherbackend
-4     default//backend-v2
-5     default//frontend-v3
+4     default//backend-v1, default//backend-v2
+5     default//frontend-v1, default//frontend-v2, default//frontend-v3
 
 processing releases in group 1/5: default//logging, default//front-proxy
 processing releases in group 2/5: default//database, default//servicemesh
 processing releases in group 3/5: default//anotherbackend
-processing releases in group 4/5: default//backend-v2
-processing releases in group 5/5: default//frontend-v3
+processing releases in group 4/5: default//backend-v1, default//backend-v2
+processing releases in group 5/5: default//frontend-v1, default//frontend-v2, default//frontend-v3
 
 UPDATED RELEASES:
 NAME             NAMESPACE   CHART                   VERSION   DURATION
diff --git a/pkg/app/testdata/testapply/upgrade_when_ns1/foo_needs_ns1/bar_and_ns2/bar_is_disabled/log b/pkg/app/testdata/testapply/upgrade_when_ns1/foo_needs_ns1/bar_and_ns2/bar_is_disabled/log
index a8776915..0976d844 100644
--- a/pkg/app/testdata/testapply/upgrade_when_ns1/foo_needs_ns1/bar_and_ns2/bar_is_disabled/log
+++ b/pkg/app/testdata/testapply/upgrade_when_ns1/foo_needs_ns1/bar_and_ns2/bar_is_disabled/log
@@ -13,17 +13,19 @@ GROUP RELEASES
 
 invoking preapply hooks for releases in group 1/2: default/ns1/foo
 invoking preapply hooks for releases in group 2/2: default/ns1/bar, default/ns2/bar
-processing 1 groups of releases in this order:
-GROUP RELEASES
-1     default/ns2/bar
-
-processing releases in group 1/1: default/ns2/bar
 processing 2 groups of releases in this order:
 GROUP RELEASES
-1     default/ns1/bar
+1     default/ns1/foo
+2     default/ns1/bar, default/ns2/bar
+
+processing releases in group 1/2: default/ns1/foo
+processing releases in group 2/2: default/ns1/bar, default/ns2/bar
+processing 2 groups of releases in this order:
+GROUP RELEASES
+1     default/ns1/bar, default/ns2/bar
 2     default/ns1/foo
 
-processing releases in group 1/2: default/ns1/bar
+processing releases in group 1/2: default/ns1/bar, default/ns2/bar
 getting deployed release version failed: Failed to get the version for: mychart2
 processing releases in group 2/2: default/ns1/foo
 getting deployed release version failed: Failed to get the version for: mychart1
diff --git a/pkg/app/testdata/testapply_2/include-transitive-needs=true/log b/pkg/app/testdata/testapply_2/include-transitive-needs=true/log
index df204aec..d00bbb0d 100644
--- a/pkg/app/testdata/testapply_2/include-transitive-needs=true/log
+++ b/pkg/app/testdata/testapply_2/include-transitive-needs=true/log
@@ -29,11 +29,15 @@ Affected releases are:
   serviceB (my/chart) UPDATED
   serviceC (my/chart) UPDATED
 
-invoking preapply hooks for 1 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default//serviceA
+2     default//serviceB
+3     default//serviceC
 
-invoking preapply hooks for releases in group 1/1: default//serviceA
+invoking preapply hooks for releases in group 1/3: default//serviceA
+invoking preapply hooks for releases in group 2/3: default//serviceB
+invoking preapply hooks for releases in group 3/3: default//serviceC
 processing 3 groups of releases in this order:
 GROUP RELEASES
 1     default//serviceC
diff --git a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true/log b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true/log
index 0b0bad62..62337d68 100644
--- a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true/log
+++ b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true/log
@@ -33,23 +33,28 @@ Affected releases are:
   kubernetes-external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/default/my-release
 2     default/default/external-secrets
+3     default/kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/default/my-release
-invoking preapply hooks for releases in group 2/2: default/default/external-secrets
-processing 2 groups of releases in this order:
+invoking preapply hooks for releases in group 1/3: default/default/my-release
+invoking preapply hooks for releases in group 2/3: default/default/external-secrets
+invoking preapply hooks for releases in group 3/3: default/kube-system/kubernetes-external-secrets
+processing 3 groups of releases in this order:
 GROUP RELEASES
-1     default/default/external-secrets
-2     default/default/my-release
+1     default/kube-system/kubernetes-external-secrets
+2     default/default/external-secrets
+3     default/default/my-release
 
-processing releases in group 1/2: default/default/external-secrets
-processing releases in group 2/2: default/default/my-release
+processing releases in group 1/3: default/kube-system/kubernetes-external-secrets
+processing releases in group 2/3: default/default/external-secrets
+processing releases in group 3/3: default/default/my-release
 
 UPDATED RELEASES:
-NAME               NAMESPACE   CHART           VERSION   DURATION
-external-secrets   default     incubator/raw   3.1.0           0s
-my-release         default     incubator/raw   3.1.0           0s
+NAME                          NAMESPACE     CHART           VERSION   DURATION
+kubernetes-external-secrets   kube-system   incubator/raw   3.1.0           0s
+external-secrets              default       incubator/raw   3.1.0           0s
+my-release                    default       incubator/raw   3.1.0           0s
 
diff --git a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
index 6af67687..77069b44 100644
--- a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
+++ b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
@@ -32,13 +32,15 @@ Affected releases are:
   external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/default/my-release
 2     default/default/external-secrets
+3     default/kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/default/my-release
-invoking preapply hooks for releases in group 2/2: default/default/external-secrets
+invoking preapply hooks for releases in group 1/3: default/default/my-release
+invoking preapply hooks for releases in group 2/3: default/default/external-secrets
+invoking preapply hooks for releases in group 3/3: default/kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/default/external-secrets
diff --git a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
index f00d2c4f..ba53e9af 100644
--- a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
+++ b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
@@ -36,20 +36,24 @@ Affected releases are:
   kubernetes-external-secrets (incubator/raw) DELETED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/default/my-release
 2     default/default/external-secrets
+3     default/kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/default/my-release
-invoking preapply hooks for releases in group 2/2: default/default/external-secrets
-processing 2 groups of releases in this order:
+invoking preapply hooks for releases in group 1/3: default/default/my-release
+invoking preapply hooks for releases in group 2/3: default/default/external-secrets
+invoking preapply hooks for releases in group 3/3: default/kube-system/kubernetes-external-secrets
+processing 3 groups of releases in this order:
 GROUP RELEASES
 1     default/default/my-release
 2     default/default/external-secrets
+3     default/kube-system/kubernetes-external-secrets
 
-processing releases in group 1/2: default/default/my-release
-processing releases in group 2/2: default/default/external-secrets
+processing releases in group 1/3: default/default/my-release
+processing releases in group 2/3: default/default/external-secrets
+processing releases in group 3/3: default/kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/default/external-secrets
@@ -64,3 +68,8 @@ NAME               NAMESPACE   CHART           VERSION   DURATION
 external-secrets   default     incubator/raw   3.1.0           0s
 my-release         default     incubator/raw   3.1.0           0s
 
+
+DELETED RELEASES:
+NAME                          NAMESPACE     DURATION
+kubernetes-external-secrets   kube-system         0s
+
diff --git a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
index d0d92835..58c602da 100644
--- a/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
+++ b/pkg/app/testdata/testapply_2/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
@@ -35,13 +35,15 @@ Affected releases are:
   external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/default/my-release
 2     default/default/external-secrets
+3     default/kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/default/my-release
-invoking preapply hooks for releases in group 2/2: default/default/external-secrets
+invoking preapply hooks for releases in group 1/3: default/default/my-release
+invoking preapply hooks for releases in group 2/3: default/default/external-secrets
+invoking preapply hooks for releases in group 3/3: default/kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/default/external-secrets
diff --git a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true/log b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true/log
index dc06cef0..3706c59d 100644
--- a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true/log
+++ b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true/log
@@ -33,23 +33,28 @@ Affected releases are:
   kubernetes-external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/my-release
 2     default/external-secrets
+3     kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/my-release
-invoking preapply hooks for releases in group 2/2: default/external-secrets
-processing 2 groups of releases in this order:
+invoking preapply hooks for releases in group 1/3: default/my-release
+invoking preapply hooks for releases in group 2/3: default/external-secrets
+invoking preapply hooks for releases in group 3/3: kube-system/kubernetes-external-secrets
+processing 3 groups of releases in this order:
 GROUP RELEASES
-1     default/external-secrets
-2     default/my-release
+1     kube-system/kubernetes-external-secrets
+2     default/external-secrets
+3     default/my-release
 
-processing releases in group 1/2: default/external-secrets
-processing releases in group 2/2: default/my-release
+processing releases in group 1/3: kube-system/kubernetes-external-secrets
+processing releases in group 2/3: default/external-secrets
+processing releases in group 3/3: default/my-release
 
 UPDATED RELEASES:
-NAME               NAMESPACE   CHART           VERSION   DURATION
-external-secrets   default     incubator/raw   3.1.0           0s
-my-release         default     incubator/raw   3.1.0           0s
+NAME                          NAMESPACE     CHART           VERSION   DURATION
+kubernetes-external-secrets   kube-system   incubator/raw   3.1.0           0s
+external-secrets              default       incubator/raw   3.1.0           0s
+my-release                    default       incubator/raw   3.1.0           0s
 
diff --git a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
index a01ac5c9..7f9b3818 100644
--- a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
+++ b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_but_no_diff_on_needed_release/log
@@ -32,13 +32,15 @@ Affected releases are:
   external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/my-release
 2     default/external-secrets
+3     kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/my-release
-invoking preapply hooks for releases in group 2/2: default/external-secrets
+invoking preapply hooks for releases in group 1/3: default/my-release
+invoking preapply hooks for releases in group 2/3: default/external-secrets
+invoking preapply hooks for releases in group 3/3: kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/external-secrets
diff --git a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
index 6bd8dc32..06963ad6 100644
--- a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
+++ b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_installed_but_disabled_release/log
@@ -36,20 +36,24 @@ Affected releases are:
   kubernetes-external-secrets (incubator/raw) DELETED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/my-release
 2     default/external-secrets
+3     kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/my-release
-invoking preapply hooks for releases in group 2/2: default/external-secrets
-processing 2 groups of releases in this order:
+invoking preapply hooks for releases in group 1/3: default/my-release
+invoking preapply hooks for releases in group 2/3: default/external-secrets
+invoking preapply hooks for releases in group 3/3: kube-system/kubernetes-external-secrets
+processing 3 groups of releases in this order:
 GROUP RELEASES
 1     default/my-release
 2     default/external-secrets
+3     kube-system/kubernetes-external-secrets
 
-processing releases in group 1/2: default/my-release
-processing releases in group 2/2: default/external-secrets
+processing releases in group 1/3: default/my-release
+processing releases in group 2/3: default/external-secrets
+processing releases in group 3/3: kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/external-secrets
@@ -64,3 +68,8 @@ NAME               NAMESPACE   CHART           VERSION   DURATION
 external-secrets   default     incubator/raw   3.1.0           0s
 my-release         default     incubator/raw   3.1.0           0s
 
+
+DELETED RELEASES:
+NAME                          NAMESPACE     DURATION
+kubernetes-external-secrets   kube-system         0s
+
diff --git a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
index a603737b..b67a15d7 100644
--- a/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
+++ b/pkg/app/testdata/testapply_3/skip-needs=false_include-needs=true_with_not_installed_and_disabled_release/log
@@ -35,13 +35,15 @@ Affected releases are:
   external-secrets (incubator/raw) UPDATED
   my-release (incubator/raw) UPDATED
 
-invoking preapply hooks for 2 groups of releases in this order:
+invoking preapply hooks for 3 groups of releases in this order:
 GROUP RELEASES
 1     default/my-release
 2     default/external-secrets
+3     kube-system/kubernetes-external-secrets
 
-invoking preapply hooks for releases in group 1/2: default/my-release
-invoking preapply hooks for releases in group 2/2: default/external-secrets
+invoking preapply hooks for releases in group 1/3: default/my-release
+invoking preapply hooks for releases in group 2/3: default/external-secrets
+invoking preapply hooks for releases in group 3/3: kube-system/kubernetes-external-secrets
 processing 2 groups of releases in this order:
 GROUP RELEASES
 1     default/external-secrets
diff --git a/pkg/state/state.go b/pkg/state/state.go
index 1354cdef..0c5cc2e4 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -3049,10 +3049,24 @@ func unmarkNeedsDirectOnly(filteredReleases []Release) {
 
 func collectDirectNeedsOnly(filteredReleases []Release) map[string]struct{} {
 	directNeeds := map[string]struct{}{}
+	nameToID := map[string]string{}
+	for _, r := range filteredReleases {
+		nameToID[r.Name] = ReleaseToID(&r.ReleaseSpec)
+	}
 	for _, r := range filteredReleases {
 		if !r.Filtered {
-			for _, id := range r.ReleaseSpec.Needs {
-				directNeeds[id] = struct{}{}
+			for _, need := range r.ReleaseSpec.Needs {
+				if fullID, ok := nameToID[need]; ok {
+					directNeeds[fullID] = struct{}{}
+				} else {
+					parts := strings.Split(need, "/")
+					needName := parts[len(parts)-1]
+					if fullID, ok := nameToID[needName]; ok {
+						directNeeds[fullID] = struct{}{}
+					} else {
+						directNeeds[need] = struct{}{}
+					}
+				}
 			}
 		}
 	}
@@ -3060,13 +3074,10 @@ func collectDirectNeedsOnly(filteredReleases []Release) map[string]struct{} {
 }
 
 func unmarkReleasesByNeedID(toUnmark map[string]struct{}, releases []Release) {
-	for needID := range toUnmark {
-		parts := strings.Split(needID, "/")
-		needName := parts[len(parts)-1]
-		for i, r := range releases {
-			if r.Name == needName {
-				releases[i].Filtered = false
-			}
+	for i := range releases {
+		releaseID := ReleaseToID(&releases[i].ReleaseSpec)
+		if _, ok := toUnmark[releaseID]; ok {
+			releases[i].Filtered = false
 		}
 	}
 }
diff --git a/pkg/state/state_run.go b/pkg/state/state_run.go
index 0f0befbf..65074c1d 100644
--- a/pkg/state/state_run.go
+++ b/pkg/state/state_run.go
@@ -104,6 +104,19 @@ func (st *HelmState) PlanReleases(opts PlanOptions) ([][]Release, error) {
 		return nil, err
 	}
 
+	// If SelectedReleases is provided, mark those releases as not filtered
+	if len(opts.SelectedReleases) > 0 {
+		selectedIDs := make(map[string]struct{})
+		for _, r := range opts.SelectedReleases {
+			selectedIDs[ReleaseToID(&r)] = struct{}{}
+		}
+		for i := range marked {
+			if _, ok := selectedIDs[ReleaseToID(&marked[i].ReleaseSpec)]; ok {
+				marked[i].Filtered = false
+			}
+		}
+	}
+
 	groups, err := SortedReleaseGroups(marked, opts)
 	if err != nil {
 		return nil, err