From b217649ef09c3da8fd1371ea5b751e594af8557b Mon Sep 17 00:00:00 2001
From: edi-oai <edi@openai.com>
Date: Tue, 18 Aug 2026 00:44:43 +0100
Subject: [PATCH] Prevent failed host-dir VMs from restarting (#463)

---
 internal/controller/controller.go | 5 ++++-
 1 file changed, 4 insertions(+), 1 deletion(-)

diff --git a/internal/controller/controller.go b/internal/controller/controller.go
index bf8ecc2..9c55807 100644
--- a/internal/controller/controller.go
+++ b/internal/controller/controller.go
@@ -322,7 +322,10 @@ func (controller *Controller) failVMsWithHostDirs() error {
 		}
 
 		for _, vm := range vms {
-			if vm.TerminalState() || len(vm.HostDirs) == 0 {
+			permanentlyFailed := vm.TerminalState() &&
+				vm.RestartPolicy == v1.RestartPolicyNever
+
+			if permanentlyFailed || len(vm.HostDirs) == 0 {
 				continue
 			}