diff --git a/resources/css/utilities.css b/resources/css/utilities.css
index 170e6ac16..e789669e6 100644
--- a/resources/css/utilities.css
+++ b/resources/css/utilities.css
@@ -355,4 +355,8 @@
         gap: 0;
         margin-inline: auto;
     }
+
+    .sidebar-collapsed .sidebar-collapsed-label {
+        display: none;
+    }
 }
diff --git a/resources/views/livewire/upgrade.blade.php b/resources/views/livewire/upgrade.blade.php
index be2a7618a..2b986a33e 100644
--- a/resources/views/livewire/upgrade.blade.php
+++ b/resources/views/livewire/upgrade.blade.php
@@ -13,7 +13,7 @@
                     <path stroke="none" d="M0 0h24v24H0z" fill="none" />
                     <path d="M19.5 13.572l-7.5 7.428l-7.5 -7.428m0 0a5 5 0 1 1 7.5 -6.566a5 5 0 1 1 7.5 6.572" />
                 </svg>
-                <span class="text-left menu-item-label" :class="collapsed && 'lg:hidden'">In progress</span>
+                <span class="text-left menu-item-label sidebar-collapsed-label">In progress</span>
             </button>
             <button title="Upgrade" aria-label="Upgrade" class="menu-item cursor-pointer" @click="modalOpen=true" x-show="!showProgress">
                 <svg xmlns="http://www.w3.org/2000/svg" class="text-pink-500 transition-colors menu-item-icon hover:text-pink-300"
@@ -25,7 +25,7 @@
                     <path d="M9 21h6" />
                     <path d="M9 18h6" />
                 </svg>
-                <span class="text-left menu-item-label" :class="collapsed && 'lg:hidden'">Upgrade</span>
+                <span class="text-left menu-item-label sidebar-collapsed-label">Upgrade</span>
             </button>
             <template x-teleport="body">
                 <div x-show="modalOpen"
diff --git a/tests/Feature/UpgradeComponentTest.php b/tests/Feature/UpgradeComponentTest.php
index aae32a7f7..0d869d3be 100644
--- a/tests/Feature/UpgradeComponentTest.php
+++ b/tests/Feature/UpgradeComponentTest.php
@@ -10,7 +10,7 @@ uses(RefreshDatabase::class);
 
 it('initializes latest version during mount from cached versions data', function () {
     config(['constants.coolify.version' => '4.0.0-beta.998']);
-    InstanceSettings::create([
+    InstanceSettings::forceCreate([
         'id' => 0,
         'new_version_available' => true,
     ]);
@@ -34,8 +34,22 @@ it('initializes latest version during mount from cached versions data', function
         ->assertSee('4.0.0-beta.999');
 });
 
+it('uses sidebar state css instead of nested alpine state for upgrade labels', function () {
+    $upgradeView = file_get_contents(resource_path('views/livewire/upgrade.blade.php'));
+    $utilitiesCss = file_get_contents(resource_path('css/utilities.css'));
+
+    expect($upgradeView)
+        ->toContain('class="text-left menu-item-label sidebar-collapsed-label"')
+        ->toContain('>In progress</span>')
+        ->toContain('>Upgrade</span>')
+        ->not->toContain(':class="collapsed && \'lg:hidden\'"')
+        ->and($utilitiesCss)
+        ->toContain('.sidebar-collapsed .sidebar-collapsed-label')
+        ->toContain('display: none;');
+});
+
 it('falls back to 0.0.0 during mount when cached versions data is unavailable', function () {
-    InstanceSettings::create([
+    InstanceSettings::forceCreate([
         'id' => 0,
         'new_version_available' => false,
     ]);
@@ -51,7 +65,7 @@ it('falls back to 0.0.0 during mount when cached versions data is unavailable',
 
 it('clears stale upgrade availability when current version already matches latest version', function () {
     config(['constants.coolify.version' => '4.0.0-beta.999']);
-    InstanceSettings::create([
+    InstanceSettings::forceCreate([
         'id' => 0,
         'new_version_available' => true,
     ]);
@@ -71,12 +85,12 @@ it('clears stale upgrade availability when current version already matches lates
         ->assertSet('latestVersion', '4.0.0-beta.999')
         ->assertSet('isUpgradeAvailable', false);
 
-    expect(InstanceSettings::findOrFail(0)->new_version_available)->toBeFalse();
+    expect((bool) InstanceSettings::findOrFail(0)->new_version_available)->toBeFalse();
 });
 
 it('clears stale upgrade availability when current version is newer than cached latest version', function () {
     config(['constants.coolify.version' => '4.0.0-beta.1000']);
-    InstanceSettings::create([
+    InstanceSettings::forceCreate([
         'id' => 0,
         'new_version_available' => true,
     ]);
@@ -96,5 +110,5 @@ it('clears stale upgrade availability when current version is newer than cached
         ->assertSet('latestVersion', '4.0.0-beta.999')
         ->assertSet('isUpgradeAvailable', false);
 
-    expect(InstanceSettings::findOrFail(0)->new_version_available)->toBeFalse();
+    expect((bool) InstanceSettings::findOrFail(0)->new_version_available)->toBeFalse();
 });