diff --git a/ansible/inventory/group_vars/all/proxy b/ansible/inventory/group_vars/all/proxy
index 2941e3398..549c6f5ae 100644
--- a/ansible/inventory/group_vars/all/proxy
+++ b/ansible/inventory/group_vars/all/proxy
@@ -12,11 +12,14 @@ https_proxy: ""
 
 # List of domains, hostnames, IP addresses and networks for which no proxy is
 # used. Defaults to ["127.0.0.1", "localhost", "{{ ('http://' ~
-# docker_registry) | urlsplit('hostname') }}"] if docker_registry is set, or
-# ["127.0.0.1", "localhost"] otherwise. This is configured only if either
-# http_proxy or https_proxy is set.
+# docker_registry) | urlsplit('hostname') if docker_registry else '' }}",
+# "{{ kolla_internal_vip_address }}", "{{ lookup('vars',
+# provision_oc_net_name ~ '_ips', default={})[groups.seed[0]] |
+# default('', true) if groups.seed | default([]) | length else '' }}"].
+# This is configured only if either http_proxy or https_proxy is set.
 no_proxy:
   - "127.0.0.1"
   - "localhost"
   - "{{ ('http://' ~ docker_registry) | urlsplit('hostname') if docker_registry else '' }}"
   - "{{ kolla_internal_vip_address }}"
+  - "{{ lookup('vars', provision_oc_net_name ~ '_ips', default={})[groups.seed[0]] | default('', true) if groups.seed | default([]) | length else '' }}"
diff --git a/dev/overcloud-test-baremetal.sh b/dev/overcloud-test-baremetal.sh
index 3c99055e4..602b2bf41 100755
--- a/dev/overcloud-test-baremetal.sh
+++ b/dev/overcloud-test-baremetal.sh
@@ -11,6 +11,8 @@ source "${PARENT}/functions"
 function main {
     config_init
     overcloud_test bm1 test-rc provision-net
+    # Test Redfish as well
+    overcloud_test bm2 test-rc-red provision-net
 }
 
 main
diff --git a/dev/overcloud-test-inspect.sh b/dev/overcloud-test-inspect.sh
index ea6aec667..b603b1911 100755
--- a/dev/overcloud-test-inspect.sh
+++ b/dev/overcloud-test-inspect.sh
@@ -10,6 +10,9 @@ source "${PARENT}/functions"
 
 function main {
     config_init
+    # Test Redfish as well
+    overcloud_test_inspect red0
+
     overcloud_test_inspect tk0
 }
 
diff --git a/dev/tenks-deploy-config-compute-libvirt-on-host.yml b/dev/tenks-deploy-config-compute-libvirt-on-host.yml
index 53f53d325..158ac9288 100644
--- a/dev/tenks-deploy-config-compute-libvirt-on-host.yml
+++ b/dev/tenks-deploy-config-compute-libvirt-on-host.yml
@@ -9,7 +9,8 @@ node_types:
     volumes:
       # There is a minimum disk space capacity requirement of 4GiB when using Ironic Python Agent:
       # https://github.com/openstack/ironic-python-agent/blob/master/ironic_python_agent/utils.py#L290
-      - capacity: 4GiB
+      # The cloud image seems to fill a 4GiB disk, so allow 6.
+      - capacity: 6GiB
     physical_networks:
       - physnet1
     console_log_enabled: true
@@ -19,6 +20,24 @@ node_types:
     # Stream IPA doesn't fail with "Fatal glibc error: CPU does not support
     # x86-64-v2".
     cpu_mode: maximum
+  type1:
+    memory_mb: 3072
+    vcpus: 1
+    volumes:
+      # There is a minimum disk space capacity requirement of 4GiB when using Ironic Python Agent:
+      # https://github.com/openstack/ironic-python-agent/blob/master/ironic_python_agent/utils.py#L290
+      # The cloud image seems to fill a 4GiB disk, so allow 6.
+      - capacity: 6GiB
+    physical_networks:
+      - physnet1
+    console_log_enabled: true
+    # We seem to hit issues with missing cpu features in CI as a result of using host-model, e.g:
+    # https://zuul.opendev.org/t/openstack/build/02c33ab51664419a88a5a54ad22852a9/log/primary/system_logs/libvirt/qemu/tk0.txt.gz#38
+    # NOTE(bbezak): Force QEMU to expose x86-64‑v2 features, so the CentOS
+    # Stream IPA doesn't fail with "Fatal glibc error: CPU does not support
+    # x86-64-v2".
+    cpu_mode: maximum
+    ironic_driver: redfish
 
 specs:
   - type: type0
@@ -26,10 +45,18 @@ specs:
     ironic_config:
       resource_class: test-rc
       network_interface: flat
+  - type: type1
+    count: 1
+    node_name_prefix: red
+    ironic_config:
+      resource_class: test-rc-red
+      network_interface: flat
 
 nova_flavors:
   - resource_class: test-rc
     node_type: type0
+  - resource_class: test-rc-red
+    node_type: type1
 
 physnet_mappings:
   physnet1: breth1
diff --git a/dev/tenks-deploy-config-compute.yml b/dev/tenks-deploy-config-compute.yml
index feb46439a..bd53f78c9 100644
--- a/dev/tenks-deploy-config-compute.yml
+++ b/dev/tenks-deploy-config-compute.yml
@@ -9,7 +9,8 @@ node_types:
     volumes:
       # There is a minimum disk space capacity requirement of 4GiB when using Ironic Python Agent:
       # https://github.com/openstack/ironic-python-agent/blob/master/ironic_python_agent/utils.py#L290
-      - capacity: 4GiB
+      # The cloud image seems to fill a 4GiB disk, so allow 6.
+      - capacity: 6GiB
     physical_networks:
       - physnet1
     console_log_enabled: true
@@ -19,6 +20,24 @@ node_types:
     # Stream IPA doesn't fail with "Fatal glibc error: CPU does not support
     # x86-64-v2".
     cpu_mode: maximum
+  type1:
+    memory_mb: 3072
+    vcpus: 1
+    volumes:
+      # There is a minimum disk space capacity requirement of 4GiB when using Ironic Python Agent:
+      # https://github.com/openstack/ironic-python-agent/blob/master/ironic_python_agent/utils.py#L290
+      # The cloud image seems to fill a 4GiB disk, so allow 6.
+      - capacity: 6GiB
+    physical_networks:
+      - physnet1
+    console_log_enabled: true
+    # We seem to hit issues with missing cpu features in CI as a result of using host-model, e.g:
+    # https://zuul.opendev.org/t/openstack/build/02c33ab51664419a88a5a54ad22852a9/log/primary/system_logs/libvirt/qemu/tk0.txt.gz#38
+    # NOTE(bbezak): Force QEMU to expose x86-64‑v2 features, so the CentOS
+    # Stream IPA doesn't fail with "Fatal glibc error: CPU does not support
+    # x86-64-v2".
+    cpu_mode: maximum
+    ironic_driver: redfish
 
 specs:
   - type: type0
@@ -26,10 +45,18 @@ specs:
     ironic_config:
       resource_class: test-rc
       network_interface: flat
+  - type: type1
+    count: 1
+    node_name_prefix: red
+    ironic_config:
+      resource_class: test-rc-red
+      network_interface: flat
 
 nova_flavors:
   - resource_class: test-rc
     node_type: type0
+  - resource_class: test-rc-red
+    node_type: type1
 
 physnet_mappings:
   physnet1: breth1
diff --git a/etc/kayobe/proxy.yml b/etc/kayobe/proxy.yml
index d7df51e52..a3ddca84b 100644
--- a/etc/kayobe/proxy.yml
+++ b/etc/kayobe/proxy.yml
@@ -12,10 +12,11 @@
 
 # List of domains, hostnames, IP addresses and networks for which no proxy is
 # used. Defaults to ["127.0.0.1", "localhost", "{{ ('http://' ~
-# docker_registry) | urlsplit('hostname') }}","{{ kolla_internal_vip_address
-# }}"] if docker_registry is set, or ["127.0.0.1", "localhost","{{
-# kolla_internal_vip_address }}"] otherwise. This is configured only if either
-# http_proxy or https_proxy is set.
+# docker_registry) | urlsplit('hostname') if docker_registry else '' }}",
+# "{{ kolla_internal_vip_address }}", "{{ lookup('vars',
+# provision_oc_net_name ~ '_ips', default={})[groups.seed[0]] |
+# default('', true) if groups.seed | default([]) | length else '' }}"].
+# This is configured only if either http_proxy or https_proxy is set.
 #no_proxy:
 
 ###############################################################################
diff --git a/playbooks/kayobe-overcloud-base/baremetal.j2 b/playbooks/kayobe-overcloud-base/baremetal.j2
index 47920424d..131639eb3 100644
--- a/playbooks/kayobe-overcloud-base/baremetal.j2
+++ b/playbooks/kayobe-overcloud-base/baremetal.j2
@@ -2,3 +2,4 @@
 hv100
 tk0
 tk1
+red0
diff --git a/playbooks/kayobe-overcloud-upgrade-base/run.yml b/playbooks/kayobe-overcloud-upgrade-base/run.yml
index 820536979..123d5686b 100644
--- a/playbooks/kayobe-overcloud-upgrade-base/run.yml
+++ b/playbooks/kayobe-overcloud-upgrade-base/run.yml
@@ -90,6 +90,12 @@
             cmd: "{{ kayobe_src_dir }}/dev/overcloud-upgrade.sh &> {{ logs_dir }}/ansible/overcloud-upgrade"
             executable: /bin/bash
 
+        # Upgrading restarts libvirt, which breaks sushy-emulator.
+        - name: Restart sushy-emulator
+          shell:
+            cmd: "systemctl restart sushy_emulator.service"
+          become: true
+
         # Remove unused Docker images to avoid reaching full disk
         - name: Remove unused Docker images
           shell:
diff --git a/releasenotes/notes/add-seed-ip-to-no-proxy-0d7212317a9b63f3.yaml b/releasenotes/notes/add-seed-ip-to-no-proxy-0d7212317a9b63f3.yaml
new file mode 100644
index 000000000..48bde7363
--- /dev/null
+++ b/releasenotes/notes/add-seed-ip-to-no-proxy-0d7212317a9b63f3.yaml
@@ -0,0 +1,9 @@
+---
+fixes:
+  - |
+    Fixes an issue where seed service deployment could fail with a
+    ``DiscoveryFailure`` error when an HTTP proxy is configured. The seed's
+    provisioning IP address is now included in the default ``no_proxy`` list,
+    preventing the proxy from intercepting requests to seed services such as
+    Ironic.
+    `LP#2154438 <https://bugs.launchpad.net/kayobe/+bug/2154438>`__
diff --git a/roles/kayobe-ci-prep/tasks/main.yml b/roles/kayobe-ci-prep/tasks/main.yml
index faea392e8..11847e719 100644
--- a/roles/kayobe-ci-prep/tasks/main.yml
+++ b/roles/kayobe-ci-prep/tasks/main.yml
@@ -64,7 +64,7 @@
 
     - name: Install kernel-modules-extra for running kernel
       ansible.builtin.dnf:
-        name: "kernel-modules-extra"
+        name: "kernel-modules-extra-{{ ansible_facts.kernel }}"
         state: present
 
   when: ansible_facts.os_family == 'RedHat'