diff --git a/.claude/settings.local.json b/.claude/settings.local.json
index 03d39c0..78beb71 100644
--- a/.claude/settings.local.json
+++ b/.claude/settings.local.json
@@ -2,7 +2,17 @@
   "permissions": {
     "allow": [
       "Bash(docker stop:*)",
-      "Bash(docker rm:*)"
+      "Bash(docker rm:*)",
+      "Bash(docker run:*)",
+      "Bash(MSYS_NO_PATHCONV=1 docker run:*)",
+      "Bash(MSYS_NO_PATHCONV=1 docker exec:*)",
+      "Bash(for node in idp-worker idp-worker2)",
+      "Bash(do:*)",
+      "Bash(echo:*)",
+      "Bash(done)",
+      "Bash(for node in idp-control-plane idp-worker idp-worker2)",
+      "Bash(kubectl --context kind-idp get pods:*)",
+      "Bash(kubectl --context kind-idp delete pod:*)"
     ]
   }
 }
diff --git a/cli/src/Vdk/Commands/CreateClusterCommand.cs b/cli/src/Vdk/Commands/CreateClusterCommand.cs
index 034cc61..08d185f 100644
--- a/cli/src/Vdk/Commands/CreateClusterCommand.cs
+++ b/cli/src/Vdk/Commands/CreateClusterCommand.cs
@@ -51,7 +51,7 @@ public CreateClusterCommand(
         controlNodes.Aliases.Add("-c");
         var workers = new Option<int>("--Workers") { DefaultValueFactory = _ => Defaults.WorkerNodes, Description = "The number of worker nodes in the cluster." };
         workers.Aliases.Add("-w");
-        var kubeVersion = new Option<string>("--KubeVersion") { DefaultValueFactory = _ => "1.29", Description = "The kubernetes api version." };
+        var kubeVersion = new Option<string>("--KubeVersion") { DefaultValueFactory = _ => "1.32", Description = "The kubernetes api version." };
         kubeVersion.Aliases.Add("-k");
 
         Options.Add(nameOption);
@@ -111,6 +111,16 @@ public async Task InvokeAsync(string name = Defaults.ClusterName, int controlPla
             return;
         }
 
+        // Write hosts.toml to a temp file for containerd registry config
+        // This ensures the file is accessible to Docker regardless of working directory
+        var hostsTomlContent = """
+            server = "http://host.docker.internal:5000"
+            [host."http://host.docker.internal:5000"]
+              capabilities = ["pull", "resolve"]
+            """;
+        var hostsTomlPath = _fileSystem.Path.Combine(_fileSystem.Path.GetTempPath(), $"hosts-{Guid.NewGuid()}.toml");
+        await _fileSystem.File.WriteAllTextAsync(hostsTomlPath, hostsTomlContent);
+
         var cluster = new KindCluster();
         for (int index = 0; index < controlPlaneNodes; index++)
         {
@@ -127,7 +137,7 @@ public async Task InvokeAsync(string name = Defaults.ClusterName, int controlPla
             {
                 new()
                 {
-                    HostPath = _fileSystem.FileInfo.New("ConfigMounts/hosts.toml").FullName,
+                    HostPath = hostsTomlPath,
                     ContainerPath = "/etc/containerd/certs.d/hub.dev-k8s.cloud/hosts.toml"
                 }
             };
@@ -144,7 +154,7 @@ public async Task InvokeAsync(string name = Defaults.ClusterName, int controlPla
                 {
                     new()
                     {
-                        HostPath = _fileSystem.FileInfo.New("ConfigMounts/hosts.toml").FullName,
+                        HostPath = hostsTomlPath,
                         ContainerPath = "/etc/containerd/certs.d/hub.dev-k8s.cloud/hosts.toml"
                     }
                 }
@@ -194,6 +204,10 @@ public async Task InvokeAsync(string name = Defaults.ClusterName, int controlPla
         }
 
         _flux.Bootstrap(name.ToLower(), "./clusters/default", branch: "main");
+
+        // Wait for all Flux kustomizations to reconcile before configuring the reverse proxy
+        _flux.WaitForKustomizations(name.ToLower());
+
         try
         {
             _reverseProxy.UpsertCluster(name.ToLower(), masterNode.ExtraPortMappings.First().HostPort,
diff --git a/cli/src/Vdk/Services/FluxClient.cs b/cli/src/Vdk/Services/FluxClient.cs
index 2abf812..c39f486 100644
--- a/cli/src/Vdk/Services/FluxClient.cs
+++ b/cli/src/Vdk/Services/FluxClient.cs
@@ -1,4 +1,5 @@
 using System.Net;
+using System.Text.Json;
 using k8s;
 using k8s.Autorest;
 using k8s.Models;
@@ -114,6 +115,91 @@ public void Bootstrap(string clusterName, string path, string branch = DefaultBr
         }
 
         _console.WriteLine("Flux bootstrap complete.");
-        
+
+    }
+
+    public bool WaitForKustomizations(string clusterName, int maxAttempts = 60, int delaySeconds = 5)
+    {
+        _console.WriteLine("Waiting for Flux kustomizations to reconcile...");
+
+        for (int attempt = 0; attempt < maxAttempts; attempt++)
+        {
+            try
+            {
+                var result = _client(clusterName).ApiClient.CustomObjects
+                    .ListNamespacedCustomObject(
+                        "kustomize.toolkit.fluxcd.io", "v1",
+                        "flux-system", "kustomizations");
+
+                var json = JsonSerializer.Serialize(result);
+                using var doc = JsonDocument.Parse(json);
+                var items = doc.RootElement.GetProperty("items");
+
+                if (items.GetArrayLength() == 0)
+                {
+                    if (attempt % 5 == 0)
+                        _console.WriteLine("  No kustomizations found yet. Waiting...");
+                    Thread.Sleep(delaySeconds * 1000);
+                    continue;
+                }
+
+                int total = items.GetArrayLength();
+                int readyCount = 0;
+
+                foreach (var item in items.EnumerateArray())
+                {
+                    var name = item.GetProperty("metadata").GetProperty("name").GetString();
+                    bool isReady = false;
+
+                    if (item.TryGetProperty("status", out var status) &&
+                        status.TryGetProperty("conditions", out var conditions))
+                    {
+                        foreach (var condition in conditions.EnumerateArray())
+                        {
+                            if (condition.GetProperty("type").GetString() == "Ready")
+                            {
+                                var condStatus = condition.GetProperty("status").GetString();
+                                if (condStatus == "True")
+                                {
+                                    isReady = true;
+                                }
+                                else if (attempt % 5 == 0)
+                                {
+                                    var reason = condition.TryGetProperty("reason", out var r)
+                                        ? r.GetString() : "Unknown";
+                                    var message = condition.TryGetProperty("message", out var m)
+                                        ? m.GetString() : "";
+                                    _console.WriteLine(
+                                        $"  Kustomization '{name}' not ready: {reason} - {message}");
+                                }
+                                break;
+                            }
+                        }
+                    }
+
+                    if (isReady) readyCount++;
+                }
+
+                if (attempt % 5 == 0 || readyCount == total)
+                    _console.WriteLine($"  Kustomizations ready: {readyCount}/{total}");
+
+                if (readyCount == total)
+                {
+                    _console.WriteLine("All Flux kustomizations are ready.");
+                    return true;
+                }
+            }
+            catch (Exception ex)
+            {
+                if (attempt % 5 == 0)
+                    _console.WriteLine($"  Error checking kustomizations: {ex.Message}. Retrying...");
+            }
+
+            Thread.Sleep(delaySeconds * 1000);
+        }
+
+        _console.WriteWarning(
+            "Timed out waiting for Flux kustomizations to reconcile. Proceeding anyway...");
+        return false;
     }
 }
\ No newline at end of file
diff --git a/cli/src/Vdk/Services/IFluxClient.cs b/cli/src/Vdk/Services/IFluxClient.cs
index 107874e..e607d7e 100644
--- a/cli/src/Vdk/Services/IFluxClient.cs
+++ b/cli/src/Vdk/Services/IFluxClient.cs
@@ -3,4 +3,5 @@ namespace Vdk.Services;
 public interface IFluxClient
 {
     void Bootstrap(string clusterName, string path, string branch = FluxClient.DefaultBranch);
+    bool WaitForKustomizations(string clusterName, int maxAttempts = 60, int delaySeconds = 5);
 }
\ No newline at end of file