diff --git a/pkg/cvo/sync_worker.go b/pkg/cvo/sync_worker.go
index 9c72c6537..fe445bcdf 100644
--- a/pkg/cvo/sync_worker.go
+++ b/pkg/cvo/sync_worker.go
@@ -580,12 +580,15 @@ func (w *statusWrapper) ValidPayloadStatus(release configv1.Release) bool {
 	return equalDigest(w.previousStatus.loadPayloadStatus.Release.Image, release.Image)
 }
 
+// ReportPayload reports payload load status.
 func (w *statusWrapper) ReportPayload(payloadStatus LoadPayloadStatus) {
 	status := w.previousStatus
 	status.loadPayloadStatus = payloadStatus
-	w.w.updateStatus(*status)
+	w.w.updateLoadStatus(*status)
 }
 
+// Report reports payload application status. It does not overwrite payload load status and capabilities status
+// since payload application does not update these statuses they could therefore be out-of-date.
 func (w *statusWrapper) Report(status SyncWorkerStatus) {
 	p := w.previousStatus
 	var fractionComplete float32
@@ -612,7 +615,7 @@ func (w *statusWrapper) Report(status SyncWorkerStatus) {
 	} else if status.Generation < p.Generation {
 		klog.Warningf("Received a Generation(%d) lower than previously known Generation(%d), this is most probably an internal error", status.Generation, p.Generation)
 	}
-	w.w.updateStatus(status)
+	w.w.updateApplyStatus(status)
 }
 
 // calculateNext updates the passed work object with the desired next state and
@@ -711,14 +714,48 @@ func equalSyncWork(a, b *SyncWork, context string) (equalVersion, equalOverrides
 	return sameVersion, sameOverrides, sameCapabilities
 }
 
-// updateStatus records the current status of the sync action for observation
-// by others. It sends a copy of the update to the report channel for improved
-// testability.
-func (w *SyncWorker) updateStatus(update SyncWorkerStatus) {
+// updateApplyStatus records the current status of the payload apply sync action for
+// observation by others. It sends a copy of the update to the report channel for improved
+// testability. It sets Generation, Failure, Done, Total, Completed, Reconciling, Initial,
+// VersionHash, LastProgress, Actual, and Verified statuses which are manged by the payload
+// apply sync action.
+func (w *SyncWorker) updateApplyStatus(update SyncWorkerStatus) {
 	w.lock.Lock()
 	defer w.lock.Unlock()
 
-	klog.V(6).Infof("Status change %#v", update)
+	// do not overwrite these status values which are not managed by apply
+	update.loadPayloadStatus = w.status.loadPayloadStatus
+	update.CapabilitiesStatus = w.status.CapabilitiesStatus
+
+	klog.V(6).Infof("Payload apply status change %#v", update)
+	w.status = update
+	select {
+	case w.report <- update:
+	default:
+		if klog.V(6).Enabled() {
+			klog.Infof("Status report channel was full %#v", update)
+		}
+	}
+}
+
+// updateLoadStatus records the current status of the payload load sync action for
+// observation by others. It sends a copy of the update to the report channel for improved
+// testability. It sets Generation, Reconciling, Actual, Verified, payload load, and
+// capabilities statuses which are manged by the payload load sync action.
+func (w *SyncWorker) updateLoadStatus(update SyncWorkerStatus) {
+	w.lock.Lock()
+	defer w.lock.Unlock()
+
+	// do not overwrite these status values which are not managed by load
+	update.Failure = w.status.Failure
+	update.Done = w.status.Done
+	update.Total = w.status.Total
+	update.Completed = w.status.Completed
+	update.Initial = w.status.Initial
+	update.VersionHash = w.status.VersionHash
+	update.LastProgress = w.status.LastProgress
+
+	klog.V(6).Infof("Payload load status change %#v", update)
 	w.status = update
 	select {
 	case w.report <- update:
@@ -761,14 +798,12 @@ func (w *SyncWorker) apply(ctx context.Context, work *SyncWork, maxWorkers int,
 	total := len(payloadUpdate.Manifests)
 	cr := &consistentReporter{
 		status: SyncWorkerStatus{
-			Generation:         work.Generation,
-			Initial:            work.State.Initializing(),
-			Reconciling:        work.State.Reconciling(),
-			VersionHash:        payloadUpdate.ManifestHash,
-			Actual:             payloadUpdate.Release,
-			Verified:           payloadUpdate.VerifiedImage,
-			loadPayloadStatus:  w.status.loadPayloadStatus,
-			CapabilitiesStatus: w.status.CapabilitiesStatus,
+			Generation:  work.Generation,
+			Initial:     work.State.Initializing(),
+			Reconciling: work.State.Reconciling(),
+			VersionHash: payloadUpdate.ManifestHash,
+			Actual:      payloadUpdate.Release,
+			Verified:    payloadUpdate.VerifiedImage,
 		},
 		completed: work.Completed,
 		version:   payloadUpdate.Release.Version,