diff --git a/pkg/bundler/deployer/localformat/local_helm.go b/pkg/bundler/deployer/localformat/local_helm.go
index 11acf75dd..9dec41a9e 100644
--- a/pkg/bundler/deployer/localformat/local_helm.go
+++ b/pkg/bundler/deployer/localformat/local_helm.go
@@ -20,6 +20,7 @@ import (
 	"log/slog"
 	"os"
 	"path/filepath"
+	"regexp"
 	"sort"
 	"strings"
 	"text/template"
@@ -29,6 +30,13 @@ import (
 	"github.com/NVIDIA/aicr/pkg/manifest"
 )
 
+// kindNamespaceRE matches a top-level YAML "kind: Namespace" line. Used to
+// detect whether a local-helm folder ships its own Namespace template, in
+// which case install.sh must omit --create-namespace: Helm 3 refuses to
+// import a namespace it created out-of-band via --create-namespace because
+// that namespace lacks the release's ownership annotations.
+var kindNamespaceRE = regexp.MustCompile(`(?m)^kind:\s+Namespace\s*$`)
+
 // hasYAMLObjects returns true if content contains at least one YAML object
 // (a non-comment, non-blank, non-separator line). Used to skip writing
 // fully-conditional manifests that rendered to nothing once values were
@@ -65,13 +73,23 @@ var (
 // templates/ directory).
 //
 // createNamespace controls whether the rendered install.sh passes
-// --create-namespace to helm. Set false when this folder's chart contains
-// a Namespace template targeting c.Namespace — Helm 3 refuses to import
-// an existing namespace lacking app.kubernetes.io/managed-by=Helm and
-// meta.helm.sh/release-name annotations, so --create-namespace creating
-// the namespace ahead of the chart's own Namespace template collides.
-// Pre-injection folders carry the privileged-Namespace manifest by
-// design and therefore pass false; primary and post folders pass true.
+// --create-namespace to helm. Callers express intent ("yes, the chart
+// expects to land in a namespace that may not exist yet"); the function
+// downgrades the flag to false automatically when any rendered manifest
+// defines its own Namespace resource — Helm 3 refuses to import a
+// namespace it created out-of-band via --create-namespace because that
+// namespace lacks the release's ownership annotations.
+//
+// The detection covers two real call shapes:
+//   - Talos pre-injection folder: ships a privileged Namespace template.
+//     Caller asks for createNamespace=true; detection downgrades to false
+//     so the chart's own Namespace template owns the resource.
+//   - Bare-resource pre-injection folder (e.g., a ConfigMap consumed by
+//     the primary chart's reconcile): no Namespace template. Caller asks
+//     for createNamespace=true; detection leaves it true so install.sh
+//     creates the target namespace before applying the ConfigMap. The
+//     primary chart's later `helm install --create-namespace` is a no-op
+//     against the existing namespace.
 //
 // Returns the Folder manifest with Files listed in deterministic order.
 func writeLocalHelmFolder(
@@ -121,6 +139,10 @@ func writeLocalHelmFolder(
 
 	seen := make(map[string]string, len(sortedPaths))
 	templateRelPaths := make([]string, 0, len(sortedPaths))
+	// hasNamespaceTemplate is set when any rendered manifest declares a
+	// top-level Namespace resource. When true, install.sh below suppresses
+	// --create-namespace to avoid the Helm 3 ownership collision.
+	hasNamespaceTemplate := false
 	for _, p := range sortedPaths {
 		baseName := filepath.Base(p)
 		if prev, ok := seen[baseName]; ok {
@@ -155,6 +177,9 @@ func writeLocalHelmFolder(
 				"component", c.Name, "manifest", baseName)
 			continue
 		}
+		if !hasNamespaceTemplate && kindNamespaceRE.Match(rendered) {
+			hasNamespaceTemplate = true
+		}
 		outPath, jerr := deployer.SafeJoin(templatesDir, baseName)
 		if jerr != nil {
 			return Folder{}, errors.Wrap(errors.ErrCodeInvalidRequest,
@@ -166,12 +191,15 @@ func writeLocalHelmFolder(
 		templateRelPaths = append(templateRelPaths, filepath.Join(dir, "templates", baseName))
 	}
 
-	// install.sh
+	// install.sh — suppress --create-namespace if a chart template owns the
+	// target namespace (see createNamespace doc comment for the full
+	// rationale and call shapes).
+	effectiveCreateNamespace := createNamespace && !hasNamespaceTemplate
 	installData := struct {
 		Name            string
 		Namespace       string
 		CreateNamespace bool
-	}{name, c.Namespace, createNamespace}
+	}{name, c.Namespace, effectiveCreateNamespace}
 	if err = renderTemplateToFile(localHelmInstallTmpl, installData, folderDir, "install.sh", 0o755); err != nil {
 		return Folder{}, err
 	}
diff --git a/pkg/bundler/deployer/localformat/writer.go b/pkg/bundler/deployer/localformat/writer.go
index 3e874f0c4..ea68b7677 100644
--- a/pkg/bundler/deployer/localformat/writer.go
+++ b/pkg/bundler/deployer/localformat/writer.go
@@ -164,17 +164,16 @@ func (opts *Options) injectAuxiliaryFolder(idx int, c Component, phase injection
 	}
 	auxName := c.Name + "-" + string(phase)
 	auxDir := fmt.Sprintf("%03d-%s", idx, auxName)
-	// Pre-phase folders carry a Namespace manifest by design (the
-	// privileged-namespace template), so install.sh must not pass
-	// --create-namespace: Helm 3 refuses to import a pre-existing
-	// namespace into the release. Post-phase folders never contain a
-	// Namespace template; --create-namespace is a no-op there since the
-	// primary release has already created it.
-	createNamespace := phase != phasePre
+	// Both pre- and post-phase folders request createNamespace=true;
+	// writeLocalHelmFolder downgrades to false automatically when the
+	// rendered templates contain a Namespace resource (Talos
+	// privileged-namespace pattern). Otherwise the target namespace may
+	// not yet exist when the pre-phase runs — the primary chart hasn't
+	// executed --create-namespace yet — so install.sh must create it.
 	f, err := writeLocalHelmFolder(
 		opts.OutputDir, auxDir, idx, c,
 		manifests, renderInputFor(c),
-		auxName, c.Name, createNamespace,
+		auxName, c.Name, true,
 	)
 	if err != nil {
 		return nil, err
diff --git a/recipes/overlays/gb200-eks-inference.yaml b/recipes/overlays/gb200-eks-inference.yaml
index 2e264a09c..31019666b 100644
--- a/recipes/overlays/gb200-eks-inference.yaml
+++ b/recipes/overlays/gb200-eks-inference.yaml
@@ -41,7 +41,9 @@ spec:
     # declared in the inheritance chain, so this lives per-leaf for now.
     - name: gpu-operator
       type: Helm
-      manifestFiles:
+      preManifestFiles:
+        # Pre-install: ClusterPolicy reconcile reads this ConfigMap during
+        # `helm install --wait`. See gb200-eks-training.yaml for full context (#859).
         - components/gpu-operator/manifests/kernel-module-params.yaml
       dependencyRefs:
         - nfd
diff --git a/recipes/overlays/gb200-eks-training.yaml b/recipes/overlays/gb200-eks-training.yaml
index 721518210..1a3aea023 100644
--- a/recipes/overlays/gb200-eks-training.yaml
+++ b/recipes/overlays/gb200-eks-training.yaml
@@ -39,12 +39,16 @@ spec:
     # eks-training / eks-inference), so this lives per-leaf for now.
     - name: gpu-operator
       type: Helm
-      manifestFiles:
+      preManifestFiles:
         # Ships a ConfigMap with options nvidia NVreg_GrdmaPciTopoCheckOverride=1.
         # driver.kernelModuleConfig.name (below) points the ClusterPolicy at it,
         # so the driver DaemonSet mounts nvidia.conf and the kernel loads with
         # the flag set — required on GB200+EFA for EFA dma-buf attach to the
         # Grace PCI topology. Without it, NCCL silently falls back to Socket.
+        #
+        # Must be preManifestFiles (applied before the chart): the chart's
+        # ClusterPolicy reconcile reads this ConfigMap during `helm install --wait`,
+        # so a post-install pass would deadlock until the chart times out (#859).
         - components/gpu-operator/manifests/kernel-module-params.yaml
       dependencyRefs:
         - nfd