Point the manager config and sample at the beelink KVM host

The default manager config gains a kvm-home provider reaching beelink
over Tailscale, the provider sample names the same host, and the
manager kustomization uses the locally built kvm-dev image.

Co-Authored-By: Claude Opus 5 (1M context) <noreply@anthropic.com>

.claude/settings.json

@@ -84,6 +84,16 @@
       "Bash(kubectl -n egress-proxies-operator-system get deploy egress-proxies-operator-controller-manager -o jsonpath='{.spec.template.spec.containers[0].args}')",
       "Bash(kubectl -n egress-proxies-operator-system logs deploy/egress-proxies-operator-controller-manager)",
       "Bash(python3 -c \"import json; d=json.load\\(open\\('docs/deploy/sa_key.json'\\)\\); print\\(d.get\\('type'\\), d.get\\('client_email'\\)\\)\")",
+      "Bash(tea pr *)",
+      "Bash(git worktree *)",
+      "Bash(python3 -c \"import yaml; yaml.safe_load\\(open\\('.gitea/workflows/build.yaml'\\)\\); print\\('YAML OK'\\)\")",
+      "Bash(ruby -ryaml -e \"YAML.load_file\\('.gitea/workflows/build.yaml'\\); puts 'YAML OK'\")",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator status --short --branch)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator log --oneline -1)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator tag 0.01)",
+      "Bash(git -C /Users/jan.novak/srv/go/egress-proxies-operator push origin 0.01)",
+      "Bash(chmod +x docs/demo/run-demo.sh)",
+      "Bash(bash -n docs/demo/run-demo.sh)",
       "Bash(git add *)",
       "Bash(git commit -q -m 'Add plan: KVM/libvirt provider *)",
       "Bash(go get *)",

CHANGELOG.md

@@ -1,5 +1,91 @@
 # Changelog
 
+## 2026-09-10 22:58 UTC — Code-review fixes on the KVM branch: deletion, validation, lazy SSH, guest agent
+
+Five findings from a review of `feat/kvm-provider`, all fixed on the branch.
+
+- **A Proxy can always finish deleting.** The delete path used to drop the finalizer
+  only when `Get` answered not-found, so a permanent error there retried forever —
+  a KVM host removed from the config was enough. It now calls `Delete` anyway, since
+  that is idempotent and can finish where `Get` cannot, and
+  `crawl.example.com/skip-cleanup: "true"` abandons the instance for whatever stays
+  stuck. In the KVM provider, deleting over an unconfigured host is a no-op success;
+  `Get` still fails permanently there so a typo cannot look like a missing VM.
+- **The guest agent ships as a vendor-data script**, superseding the cloud-config
+  merge in the entry below. Merging could never be made safe: cloud-init drops
+  vendor-data keys the user-data defines, and the strategy cannot be overridden from
+  either document. The Proxy's cloud-init now reaches the seed byte for byte in any
+  format — Jinja, MIME, gzip, scripts — where the round-trip previously re-typed
+  unquoted scalars (`version: 1.10` arrived as `1.1`), dropped comments and reordered
+  keys. New `installGuestAgent` setting, default on.
+- **A missing `kvm-ssh` Secret no longer crash-loops the manager.** The SSH material
+  is read on first use and cached, so only KVM Proxies fail and they recover when the
+  Secret appears. A missing file is transient, an unparseable key permanent, and
+  startup still logs a warning.
+- **Host names and image keys are validated.** Either can end up in a providerID or a
+  volume file name, where a slash made the VM unaddressable for good.
+- Verified end to end: unit suite, the integration test against a real hypervisor
+  (22 s, agent reporting the IP), both in-cluster Proxies Ready in 2 min with 204
+  through squid, the guest showing `qemu-guest-agent` active with its cloud-config
+  comments intact, and the manager staying up with the Secret pointed away.
+- Key files: `internal/provider/kvm/{seed.go,conn.go,kvm.go}`,
+  `internal/controller/proxy_controller.go`, `internal/provider/config_kvm.go`,
+  `api/v1alpha1/proxy_types.go`.
+
+## 2026-09-10 21:04 UTC — KVM provider passes in-cluster; guest agent merged into cloud-config
+
+- Two KVM Proxies with real cloud-configs reach `Ready` from inside the kind cluster
+  (2 min from apply, IP via the guest agent, 204 through squid from the LAN).
+- The `qemu-guest-agent` bootstrap is now merged into each Proxy's cloud-config
+  (`packages` + `runcmd`) instead of shipped as vendor-data: cloud-init's default
+  merger drops vendor-data keys the user-data also defines, so any Proxy with its own
+  `packages:` never got the agent and stayed `Provisioning` forever. `vendorData` is
+  now plain extra vendor-data with no default; non-cloud-config user-data (scripts,
+  `#include`) still gets the bootstrap as vendor-data. A cloud-config that is not a
+  YAML mapping fails the Proxy permanently instead of booting without its config.
+- The manager pod mounts a 64 MiB `emptyDir` on `/tmp`: the seed ISO writer stages
+  files on disk and the root filesystem is read-only.
+- Errors already classified with a provider sentinel no longer drop the cached
+  libvirt SSH connection; only libvirt and transport errors do.
+- Key files: `internal/provider/kvm/{seed.go,conn.go,errors.go}`,
+  `config/manager/manager.yaml`, `docs/kvm-provider.md`.
+
+## 2026-09-10 10:07 UTC — KVM provider validated on a real hypervisor; UEFI default; libvirt call tracing
+
+- `make test-integration-kvm` passes end to end against a libvirt 11.6 / QEMU 10.1
+  host (Debian 13 image, UEFI, guest agent reporting the IP after ~20 s). Four
+  defects found only on the real host, all fixed on the branch:
+  - domain disks are now `type="file"` with resolved paths: pool-volume references
+    get no AppArmor rule from `virt-aa-helper`, so QEMU was denied the disks;
+  - domain metadata is parsed by local name: libvirt returns the element without
+    its namespace declaration;
+  - guests boot **UEFI by default** (`images.<key>.firmware: uefi|bios`, OVMF now a
+    host prerequisite): Debian 13's image hangs in GRUB under SeaBIOS on a headless
+    VM with a serial console (Debian bug #1111240, open); bookworm is unaffected;
+  - the image cache's raw-upload path is confirmed to produce a byte-identical file.
+- Every libvirt RPC is logged at `--zap-log-level=debug` as one `libvirt call` line
+  (`rpc=virDomainCreate`, identifiers, duration, `libvirtError` on failure); level 2
+  adds XML, metadata and addresses; cloud-init is never logged. The integration test
+  shows the trace in `-v` output (`KVM_TEST_LOG_LEVEL`, default 1).
+- Key files: `internal/provider/kvm/{domainxml.go,metadata.go,trace.go,conn.go}`,
+  `internal/provider/config_kvm.go`, `docs/kvm-provider.md`.
+
+## 2026-09-08 11:00 UTC — KVM/libvirt provider
+
+- New `kvm` provider type: Managed proxies as VMs on your own libvirt/KVM hosts. Each
+  host is reached over SSH with the libvirt unix socket forwarded through the
+  connection (pure Go, nothing to expose on the hypervisors beyond sshd); one provider
+  instance can span several hosts, selected by `placement.zone`.
+- Base images (`images:` map or a direct URL in `placement.image`) are downloaded by the
+  operator into each host's storage pool on first use, verified by sha256 when configured,
+  and cached there. Per-VM disks are qcow2 overlays; cloud-init arrives on a NoCloud seed
+  ISO built in-process. GC identity lives in the domain's `<metadata>` element.
+- Wiring: `"kvm": kvm.New` in `cmd/main.go`; optional `kvm-ssh` Secret mounted at
+  `/etc/proxy-operator/kvm`; samples `config/samples/proxy_kvm.yaml` and a `kvm-home`
+  block in `providers-config.yaml`; `docs/kvm-provider.md`; opt-in integration test
+  (`make test-integration-kvm`) against a real hypervisor.
+- Not validated on a real host at the time of this entry; see 2026-09-10 above.
+
 ## 2026-08-10 09:34 CEST — kind e2e verified; fix Squid OOM in containers; quickstart goes in-cluster
 
 - Full end-to-end pass on a throwaway kind cluster: Squid pod Ready with a real CONNECT

Makefile

@@ -66,6 +66,10 @@ vet: ## Run go vet against code.
 test: manifests generate fmt vet setup-envtest ## Run tests.
 	KUBEBUILDER_ASSETS="$(shell "$(ENVTEST)" use $(ENVTEST_K8S_VERSION) --bin-dir "$(LOCALBIN)" -p path)" go test -race $$(go list ./... | grep -v /e2e) -coverprofile cover.out
 
+.PHONY: test-integration-kvm
+test-integration-kvm: ## Run the KVM provider test against a real hypervisor. Needs KVM_TEST_HOST/USER/SSH_KEY/BRIDGE/IMAGE_URL; see docs/testing.md.
+	go test -race -tags=integration -count=1 -v -timeout 40m -run TestKVM ./internal/provider/kvm/
+
 # TODO(user): To use a different vendor for e2e tests, modify the setup under 'tests/e2e'.
 # The default setup assumes Kind is pre-installed and builds/loads the Manager Docker image locally.
 # kubectl kuberc is disabled by default for test isolation; enable with:
@@ -90,7 +94,8 @@ setup-test-e2e: ## Set up a Kind cluster for e2e tests if it does not exist
 
 .PHONY: test-e2e
 test-e2e: setup-test-e2e manifests generate fmt vet ## Run the e2e tests. Expected an isolated environment using Kind.
-	KIND=$(KIND) KIND_CLUSTER=$(KIND_CLUSTER) go test -tags=e2e ./test/e2e/ -v -ginkgo.v
+	KIND=$(KIND) KIND_CLUSTER=$(KIND_CLUSTER) TEMPO_URL=$(TEMPO_URL) OTLP_ENDPOINT=$(OTLP_ENDPOINT) \
+		go test -tags=e2e ./test/e2e/ -v -ginkgo.v -timeout 30m
 	$(MAKE) cleanup-test-e2e
 
 .PHONY: cleanup-test-e2e
@@ -173,6 +178,20 @@ uninstall: manifests kustomize ## Uninstall CRDs from the K8s cluster specified
 	@out="$$( "$(KUSTOMIZE)" build config/crd 2>/dev/null || true )"; \
 	if [ -n "$$out" ]; then echo "$$out" | "$(KUBECTL)" delete --ignore-not-found=$(ignore-not-found) -f -; else echo "No CRDs to delete; skipping."; fi
 
+KVM_SSH_KEY ?= $(HOME)/.ssh/proxy-operator_ed25519
+KVM_KNOWN_HOSTS ?= $(HOME)/.ssh/kvm_known_hosts
+KVM_SSH_NAMESPACE ?= egress-proxies-operator-system
+
+.PHONY: kvm-ssh-secret
+kvm-ssh-secret: ## Create or update the kvm-ssh Secret from KVM_SSH_KEY (private key) and KVM_KNOWN_HOSTS.
+	@test -f "$(KVM_SSH_KEY)" || { echo "KVM_SSH_KEY=$(KVM_SSH_KEY) not found"; exit 1; }
+	@test -f "$(KVM_KNOWN_HOSTS)" || { echo "KVM_KNOWN_HOSTS=$(KVM_KNOWN_HOSTS) not found"; exit 1; }
+	@grep -q 'PRIVATE KEY' "$(KVM_SSH_KEY)" || { echo "KVM_SSH_KEY=$(KVM_SSH_KEY) is not a private key (did you pass the .pub?)"; exit 1; }
+	"$(KUBECTL)" -n $(KVM_SSH_NAMESPACE) create secret generic kvm-ssh \
+		--from-file=id_ed25519="$(KVM_SSH_KEY)" \
+		--from-file=known_hosts="$(KVM_KNOWN_HOSTS)" \
+		--dry-run=client -o yaml | "$(KUBECTL)" apply -f -
+
 .PHONY: deploy
 deploy: manifests kustomize ## Deploy controller to the K8s cluster specified in ~/.kube/config.
 	cd config/manager && "$(KUSTOMIZE)" edit set image controller=${IMG}

README.md

@@ -15,9 +15,10 @@ itself**, and hands out to crawler clients via an HTTP list/lease API.
   cattle**: any meaningful spec change (placement, cloud-init, port)
   deletes and recreates the VM — never in-place mutation.
 - **Providers** behind one minimal interface: `kubernetes` (a real Squid
-  pod in this cluster — local dev/CI) and `gcp` (Compute Engine VMs with
+  pod in this cluster — local dev/CI), `gcp` (Compute Engine VMs with
-  ephemeral external IPs — the real egress fleet). Config is a YAML file
+  ephemeral external IPs — the real egress fleet) and `kvm` (VMs on your
-  (`--providers-config`) with named instances (`gcp-eu`, `gcp-us`, ...).
+  own libvirt hypervisors, reached over SSH). Config is a YAML file
+  (`--providers-config`) with named instances (`gcp-eu`, `kvm-home`, ...).
 - **Health engine** probes every proxy by fetching a URL *through* it (a
   real CONNECT tunnel — a proxy that accepts TCP but can't egress goes
   Unhealthy), with threshold logic and transition-only status writes.
@@ -131,11 +132,119 @@ make deploy IMG=<registry>/egress-proxies-operator:dev
    which also installs Squid via cloud-init). A missing field fails the
    Proxy with a message naming it.
 
+## KVM setup
+
+Managed proxies as VMs on libvirt/KVM hosts you own. Full guide:
+[docs/kvm-provider.md](docs/kvm-provider.md).
+
+1. Each host needs `libvirtd`, an SSH user in the `libvirt` group, a
+   bridge to a network with DHCP, and a storage pool.
+2. Create the `kvm-ssh` Secret from the operator's **private** key and a
+   `known_hosts` with each host's key; the manager mounts it at
+   `/etc/proxy-operator/kvm`:
+
+   ```sh
+   ssh-keyscan -H <host> >> ~/.ssh/kvm_known_hosts
+   kubectl -n egress-proxies-operator-system create secret generic kvm-ssh \
+     --from-file=id_ed25519=$HOME/.ssh/proxy-operator_ed25519 \
+     --from-file=known_hosts=$HOME/.ssh/kvm_known_hosts
+   # or: make kvm-ssh-secret   (same paths by default; KVM_SSH_KEY / KVM_KNOWN_HOSTS to override)
+   ```
+
+3. Add a `kvm` entry to the providers config with `images`,
+   `machineTypes` and `hosts` (see
+   [config/samples/providers-config.yaml](config/samples/providers-config.yaml)).
+   Base images are downloaded into each host's pool on first use.
+4. A Proxy names a host (`placement.zone`, optional with one host), a
+   size (`placement.machineType`) and an image (`placement.image`) — see
+   [config/samples/proxy_kvm.yaml](config/samples/proxy_kvm.yaml).
+
 Cloud-init from a Secret: the Secret **must** carry the label
 `crawl.example.com/cloud-init: "true"` — the operator's cache only holds
 labelled Secrets, so an unlabelled one is invisible (the Proxy reports
 `CloudInitError`). Rotating the Secret's content triggers VM replacement.
 
+Stuck deletion: a Proxy stays `Terminating` while the operator keeps failing
+to clean its instance up — credentials revoked, a provider or a KVM host
+dropped from the config. Annotate it with
+`crawl.example.com/skip-cleanup: "true"` to abandon the instance and release
+the object. Whatever is still running then has to be removed by hand.
+
+## Providers
+
+`Managed` proxies are provisioned by a provider — a small compute backend
+behind one minimal interface. Providers are configured in the
+`--providers-config` YAML file as **named instances**: `spec.provider` on a
+Proxy refers to an entry's `name`, not its `type`, so `gcp-eu` and `gcp-us`
+can be two differently-configured instances of the same `gcp` type (see
+[config/samples/providers-config.yaml](config/samples/providers-config.yaml)).
+
+### Implemented providers
+
+| Type | Creates | Per-instance config | Notes |
+| --- | --- | --- | --- |
+| `kubernetes` | A real Squid pod (`ubuntu/squid:6.6-24.04_edge` by default) in the same cluster the operator runs in | `image` (optional) | Needs no cloud account — local dev, CI, and the kind quickstart. Pods share the cluster's egress IP, so it exercises the full lifecycle but not distinct egress paths. |
+| `gcp` | A Compute Engine VM with an ephemeral external IP | `project` (required), `network`, `networkTag`, `diskSizeGb` | The real egress fleet. Deliberately uses only four API calls (Insert / Get / Delete / AggregatedList), all fire-and-forget: `Create` returns as soon as the operation is submitted and the reconciler discovers progress by polling `Get`. Auth is Application Default Credentials — workload identity in-cluster, `gcloud` ADC locally; no key-file plumbing. |
+
+### Adding a provider
+
+A new backend (Hetzner, AWS, ...) is four pieces; the contract lives in
+[internal/provider/provider.go](internal/provider/provider.go):
+
+1. **Implement the 4-method `Provider` interface** in a new
+   `internal/provider/<type>/` package:
+   - `Create` submits and returns — it never blocks until the VM runs, and
+     must be idempotent keyed on `req.Name` (a deterministic name derived
+     from the Proxy's UID), so a repeat call after a crash finds the
+     existing instance instead of duplicating it.
+   - `Get` returns `provider.ErrNotFound` as a *normal* outcome — the
+     reconciler branches on it for replacement and adoption, so don't
+     treat it as exceptional.
+   - `Delete` is idempotent: deleting an already-gone instance is not an
+     error.
+   - `ListByTag` returns every instance the operator ever tagged, for
+     orphan GC.
+2. **Tag every created resource** with `LabelManaged=true` and
+   `LabelUID=<Proxy UID>`, and report `CreatedAt` — orphan GC relies on
+   all three to find owned resources and skip in-flight creates.
+3. **Classify every returned error** with `provider.Wrap` into the
+   four-sentinel taxonomy in
+   [internal/provider/errors.go](internal/provider/errors.go)
+   (`ErrNotFound` / `ErrQuotaExceeded` / `ErrTransient` / `ErrPermanent`)
+   — the reconciler decides retry, slow backoff, or latching `Failed`
+   purely from that classification, never from provider-specific types.
+4. **Wire it up**: add a type-specific config block in
+   [internal/provider/config.go](internal/provider/config.go), and
+   register the constructor in the builtins map in
+   [cmd/main.go](cmd/main.go) (`"<type>": <pkg>.New`). The registry
+   ([internal/provider/registry](internal/provider/registry/registry.go))
+   handles named instances, and the metrics wrapper is applied
+   automatically.
+
+Test against a fake API seam rather than the real cloud — see the
+`instancesAPI` seam in
+[internal/provider/gcp/gcp.go](internal/provider/gcp/gcp.go) for the
+pattern.
+
+## Tracing
+
+OpenTelemetry tracing is built in but **off by default** — the operator
+only exports spans when pointed at an OTLP receiver:
+
+```bash
+# In config/manager/manager.yaml (commented-out block is already there):
+#   OTEL_EXPORTER_OTLP_ENDPOINT=http://jaeger-collector.observability:4318
+# Local dev: print spans to stdout instead
+OTEL_TRACES_EXPORTER=console go run ./cmd --providers-config hack/providers-dev.yaml
+```
+
+Every reconcile, discovery API request, and GC sweep becomes a trace, with
+child spans for provider and Kubernetes API calls; log lines inside a traced
+operation carry matching `traceID`/`spanID` fields (point Grafana/Loki
+derived fields at `traceID`). Sampling and endpoints follow the standard
+`OTEL_*` env vars; `--trace-health-probes` additionally traces each health
+probe (high volume). Details in `docs/architecture.md` §10.
+
 ## Caveats — read these two
 
 **Changing a proxy changes its IP.** Proxies are immutable cattle: editing

api/v1alpha1/proxy_types.go

@@ -62,6 +62,15 @@ const (
 	// must be replaced.
 	AnnotationSpecHash = "crawl.example.com/spec-hash"
 
+	// AnnotationSkipCleanup abandons the provider-side instance: set it to
+	// "true" and deletion removes the finalizer without asking the provider
+	// to clean anything up. It is the escape hatch for a cleanup that cannot
+	// succeed — a provider dropped from the config, credentials revoked, a
+	// backend that answers permanently — where the object would otherwise
+	// stay in Terminating forever. The instance is left running and becomes
+	// the administrator's to remove.
+	AnnotationSkipCleanup = "crawl.example.com/skip-cleanup"
+
 	// LabelCloudInit must be set (to "true") on every Secret referenced by
 	// spec.cloudInit.secretRef: the manager's cache only holds Secrets
 	// carrying this label, so an unlabelled Secret is invisible to the

cmd/main.go

@@ -42,6 +42,7 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/cache"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/healthz"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
 	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 	ctrlmetrics "sigs.k8s.io/controller-runtime/pkg/metrics"
 	"sigs.k8s.io/controller-runtime/pkg/metrics/filters"
@@ -57,7 +58,9 @@ import (
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/gcp"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/kubernetes"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/kvm"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider/registry"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/version"
 	// +kubebuilder:scaffold:imports
 )
@@ -93,6 +96,7 @@ func main() {
 	var leaseCooldown, maxLeaseTTL time.Duration
 	var showVersion bool
 	var gcpWireFullPayloads bool
+	var traceHealthProbes bool
 
 	flag.StringVar(&metricsAddr, "metrics-bind-address", "0", "The address the metrics endpoint binds to. "+
 		"Use :8443 for HTTPS or :8080 for HTTP, or leave as 0 to disable the metrics service.")
@@ -133,6 +137,9 @@ func main() {
 		"Print the commit the binary was built from and exit.")
 	flag.BoolVar(&gcpWireFullPayloads, "gcp-wire-log-full-payloads", false,
 		"Log GCP V(5) wire payloads verbatim instead of eliding fields larger than 1KiB.")
+	flag.BoolVar(&traceHealthProbes, "trace-health-probes", false,
+		"Emit one trace span per health probe. Off by default: probes run about "+
+			"once per second per proxy and would dominate trace volume.")
 
 	opts := zap.Options{
 		Development: true,
@@ -148,6 +155,17 @@ func main() {
 	ctrl.SetLogger(zap.New(zap.UseFlagOptions(&opts)))
 	setupLog.Info("Starting egress-proxies-operator",
 		"commit", version.Resolve(), "goVersion", goruntime.Version())
+
+	// Off (no-op spans, unchanged logs) unless OTEL_* env opts in; see
+	// internal/tracing. Shutdown is called explicitly after mgr.Start
+	// returns — the os.Exit paths below skip defers.
+	tracingShutdown, err := tracing.Setup(logf.IntoContext(context.Background(), setupLog),
+		"egress-proxies-operator", version.Resolve())
+	if err != nil {
+		setupLog.Error(err, "Failed to set up tracing")
+		os.Exit(1)
+	}
+
 	ctx := ctrl.SetupSignalHandler()
 
 	// Providers load first and fail fast: a manager that comes up without
@@ -162,10 +180,15 @@ func main() {
 		os.Exit(1)
 	}
 	providers, err := registry.Build(ctx, cfg, map[string]registry.Constructor{
-		"kubernetes": kubernetes.New,
+		"kubernetes": func(ctx context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
+			// The kubernetes provider builds its own uncached client;
+			// wrap its transport so its API calls join the caller's trace.
+			return kubernetes.NewWithTransportWrapper(ctx, pc, tracing.RestConfigWrapper())
+		},
 		"gcp": func(ctx context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
 			return gcp.NewWithWireOptions(ctx, pc, gcp.WireLogOptions{FullPayloads: gcpWireFullPayloads})
 		},
+		"kvm": kvm.New,
 	})
 	if err != nil {
 		setupLog.Error(err, "Failed to build providers")
@@ -173,7 +196,8 @@ func main() {
 	}
 	m := metrics.New()
 	for name, p := range providers {
-		providers[name] = provider.WithMetrics(name, p, m)
+		// Tracing outermost: the span covers the metrics recording too.
+		providers[name] = provider.WithTracing(name, provider.WithMetrics(name, p, m))
 	}
 
 	// if the enable-http2 flag is false (the default), http/2 should be disabled
@@ -236,7 +260,9 @@ func main() {
 		cacheOpts.DefaultNamespaces = map[string]cache.Config{proxyNamespace: {}}
 	}
 
-	mgr, err := ctrl.NewManager(ctrl.GetConfigOrDie(), ctrl.Options{
+	restCfg := ctrl.GetConfigOrDie()
+	restCfg.Wrap(tracing.RestConfigWrapper())
+	mgr, err := ctrl.NewManager(restCfg, ctrl.Options{
 		Scheme:                 scheme,
 		Metrics:                metricsServerOptions,
 		HealthProbeBindAddress: probeAddr,
@@ -258,6 +284,7 @@ func main() {
 	engine := health.NewEngine(mgr.GetClient())
 	engine.Workers = healthWorkers
 	engine.Metrics = m
+	engine.TraceProbes = traceHealthProbes
 	if err := mgr.Add(engine); err != nil {
 		setupLog.Error(err, "Failed to add health engine")
 		os.Exit(1)
@@ -323,8 +350,19 @@ func main() {
 	}
 
 	setupLog.Info("Starting manager")
-	if err := mgr.Start(ctx); err != nil {
+	startErr := mgr.Start(ctx)
-		setupLog.Error(err, "Failed to run manager")
+
+	// Flush pending spans on the way out, error path included. Fresh
+	// context: the signal ctx is already cancelled by the time Start
+	// returns.
+	shutdownCtx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+	if err := tracingShutdown(shutdownCtx); err != nil {
+		setupLog.Error(err, "Failed to flush traces on shutdown")
+	}
+	cancel()
+
+	if startErr != nil {
+		setupLog.Error(startErr, "Failed to run manager")
 		os.Exit(1)
 	}
 }

config/manager/kustomization.yaml

@@ -5,5 +5,5 @@ apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 images:
 - name: controller
-  newName: example.com/egress-proxies-operator
+  newName: egress-proxies-operator
-  newTag: v0.0.1
+  newTag: kvm-dev

config/manager/manager.yaml

@@ -64,6 +64,8 @@ spec:
           - --leader-elect
           - --health-probe-bind-address=:8081
           - --providers-config=/etc/proxy-operator/providers.yaml
+          # Add --trace-health-probes to emit one span per health probe
+          # (high volume: ~1/s per proxy).
         env:
           # Bearer token for the discovery API. Optional: without the
           # Secret the API serves unauthenticated (with a loud warning).
@@ -76,6 +78,33 @@ spec:
                 name: discovery-token
                 key: token
                 optional: true
+          # --- OpenTelemetry tracing ---
+          # Tracing is OFF until OTEL_EXPORTER_OTLP_ENDPOINT (or
+          # OTEL_TRACES_EXPORTER) is set; without it the operator runs
+          # exactly as before. The downward-API vars must stay listed
+          # before OTEL_RESOURCE_ATTRIBUTES: $(VAR) expansion only sees
+          # earlier-listed vars.
+          - name: POD_NAME
+            valueFrom:
+              fieldRef:
+                fieldPath: metadata.name
+          - name: POD_NAMESPACE
+            valueFrom:
+              fieldRef:
+                fieldPath: metadata.namespace
+          - name: OTEL_SERVICE_NAME
+            value: egress-proxies-operator
+          - name: OTEL_RESOURCE_ATTRIBUTES
+            value: k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE)
+          # Point at an OTLP receiver (Tempo, Jaeger, otel-collector) to
+          # enable tracing; http/protobuf (4318) is the default protocol,
+          # set OTEL_EXPORTER_OTLP_PROTOCOL=grpc for 4317.
+          # - name: OTEL_EXPORTER_OTLP_ENDPOINT
+          #   value: http://jaeger-collector.observability:4318
+          # - name: OTEL_TRACES_SAMPLER
+          #   value: parentbased_traceidratio
+          # - name: OTEL_TRACES_SAMPLER_ARG
+          #   value: "0.1"
         image: controller:latest
         name: manager
         ports:
@@ -116,9 +145,30 @@ spec:
         - name: providers-config
           mountPath: /etc/proxy-operator
           readOnly: true
+        # SSH material for kvm providers (sshKeyFile / knownHostsFile in the
+        # providers config point here). Optional: the mount is empty when the
+        # Secret does not exist, and only kvm entries need it. Create it with:
+        #   kubectl -n egress-proxies-operator-system create secret generic kvm-ssh \
+        #     --from-file=id_ed25519=<private key> \
+        #     --from-file=known_hosts=<known_hosts with every host's key>
+        - name: kvm-ssh
+          mountPath: /etc/proxy-operator/kvm
+          readOnly: true
+        # Scratch space: the root filesystem is read-only, and the kvm
+        # provider builds each VM's cloud-init seed ISO through a temp
+        # directory (a few hundred KB, deleted right after upload).
+        - name: tmp
+          mountPath: /tmp
       volumes:
       - name: providers-config
         configMap:
           name: providers-config
+      - name: kvm-ssh
+        secret:
+          secretName: kvm-ssh
+          optional: true
+      - name: tmp
+        emptyDir:
+          sizeLimit: 64Mi
       serviceAccountName: controller-manager
       terminationGracePeriodSeconds: 10

config/manager/providers_config.yaml

@@ -9,9 +9,46 @@ metadata:
 data:
   # Mounted at /etc/proxy-operator/providers.yaml (--providers-config).
   # The default ships only the kubernetes-pod provider so the operator runs
-  # out of the box; add gcp entries (type: gcp, gcp.project: ...) for real
+  # out of the box; add gcp entries (type: gcp, gcp.project: ...) or kvm
-  # egress fleets — see config/samples/providers-config.yaml.
+  # entries (type: kvm, hosts reached over SSH) for real egress fleets —
+  # see config/samples/providers-config.yaml.
   providers.yaml: |
     providers:
       - name: kubernetes
         type: kubernetes
+      - name: kvm-home
+        type: kvm
+        kvm:
+          # SSH to each host with the libvirt unix socket forwarded through the
+          # connection; nothing to open on the hypervisors beyond sshd. Both
+          # files come from the optional kvm-ssh Secret mounted by
+          # config/manager/manager.yaml — see docs/kvm-provider.md.
+          sshKeyFile: /etc/proxy-operator/kvm/id_ed25519
+          knownHostsFile: /etc/proxy-operator/kvm/known_hosts
+          # insecureIgnoreHostKey: true   # skip host-key checks (not recommended)
+          # diskSizeGb: 10                # per-VM overlay; cloud-init grows the root fs into it
+          # vendorData: |                 # extra vendor-data; the qemu-guest-agent bootstrap is merged
+          #   #cloud-config               # into each Proxy's cloud-config, not configured here
+          #   ...
+          images:
+            # placement.image names a key here (or is an https:// URL directly).
+            # Fetched into each host's pool on first use and cached there as
+            # base-<key>.qcow2; do not change an entry while Proxies use it.
+            debian-13:
+              url: https://cloud.debian.org/images/cloud/trixie/latest/debian-13-generic-amd64.qcow2
+              # sha256: "<64 hex>"        # optional; verified after download
+              # firmware: uefi            # default; "bios" only for images with no EFI partition
+              #                           # (Debian 13 hangs in GRUB under BIOS headless: Debian bug #1111240)
+            ubuntu-24.04:
+              url: https://cloud-images.ubuntu.com/noble/current/noble-server-cloudimg-amd64.img
+          machineTypes:                   # placement.machineType names a key here
+            small:  {vcpus: 1, memoryMiB: 1024}
+            medium: {vcpus: 2, memoryMiB: 2048}
+          hosts:                          # placement.zone names a host; optional with one host
+            - name: beelink
+              address: beelink.tail8c69c.ts.net:22
+              user: novakj                  # must be in the libvirt group
+              bridge: br0                 # to a LAN with DHCP; the VM's IP comes from there
+              # socket: /var/run/libvirt/libvirt-sock
+              # pool: default
+

config/samples/kustomization.yaml

@@ -4,5 +4,6 @@
 resources:
 - proxy_kubernetes.yaml
 - proxy_gcp.yaml
+- proxy_kvm.yaml
 - proxy_external.yaml
 # +kubebuilder:scaffold:manifestskustomizesamples

config/samples/providers-config.yaml

@@ -19,3 +19,39 @@ providers:
       # diskSizeGb: 10
       # auth: Application Default Credentials (workload identity
       # in-cluster, gcloud ADC locally). No key-file plumbing.
+  - name: kvm-home
+    type: kvm
+    kvm:
+      # SSH to each host with the libvirt unix socket forwarded through the
+      # connection; nothing to open on the hypervisors beyond sshd. Both
+      # files come from the optional kvm-ssh Secret mounted by
+      # config/manager/manager.yaml — see docs/kvm-provider.md.
+      sshKeyFile: /etc/proxy-operator/kvm/id_ed25519
+      knownHostsFile: /etc/proxy-operator/kvm/known_hosts
+      # insecureIgnoreHostKey: true   # skip host-key checks (not recommended)
+      # diskSizeGb: 10                # per-VM overlay; cloud-init grows the root fs into it
+      # installGuestAgent: false      # skip the vendor-data script that installs qemu-guest-agent
+      # vendorData: |                 # extra vendor-data, carried beside the agent script as a
+      #   #cloud-config               # MIME multipart. The Proxy's own cloud-init is never rewritten.
+      #   ...
+      images:
+        # placement.image names a key here (or is an https:// URL directly).
+        # Fetched into each host's pool on first use and cached there as
+        # base-<key>.qcow2; do not change an entry while Proxies use it.
+        debian-13:
+          url: https://cloud.debian.org/images/cloud/trixie/latest/debian-13-generic-amd64.qcow2
+          # sha256: "<64 hex>"        # optional; verified after download
+          # firmware: uefi            # default; "bios" only for images with no EFI partition
+          #                           # (Debian 13 hangs in GRUB under BIOS headless: Debian bug #1111240)
+        ubuntu-24.04:
+          url: https://cloud-images.ubuntu.com/noble/current/noble-server-cloudimg-amd64.img
+      machineTypes:                   # placement.machineType names a key here
+        small:  {vcpus: 1, memoryMiB: 1024}
+        medium: {vcpus: 2, memoryMiB: 2048}
+      hosts:                          # placement.zone names a host; optional with one host
+        - name: beelink
+          address: beelink:22
+          user: novakj                  # must be in the libvirt group
+          bridge: br0                 # to a LAN with DHCP; the VM's IP comes from there
+          # socket: /var/run/libvirt/libvirt-sock
+          # pool: default

config/samples/proxy_kvm.yaml

@@ -0,0 +1,43 @@
+# A Managed proxy backed by a libvirt/KVM hypervisor on the home network:
+# the operator boots a stock Debian cloud image as a VM on the named host,
+# with a NIC on the host's bridge (IP from the LAN's DHCP), and installs
+# Squid via cloud-init. Requires a providers-config entry named "kvm-home"
+# (see providers-config.yaml) and the kvm-ssh Secret (docs/kvm-provider.md).
+#
+# placement.zone is the host name from kvm.hosts (optional when only one
+# host is configured); machineType and image are keys in the provider's
+# machineTypes and images maps. The first Proxy for an image on a host
+# waits for the image download; later ones reuse the cached copy.
+apiVersion: crawl.example.com/v1alpha1
+kind: Proxy
+metadata:
+  name: proxy-kvm-sample
+spec:
+  mode: Managed
+  provider: kvm-home
+  placement:
+    zone: nas1
+    machineType: small
+    image: debian-13
+  port: 3128
+  cloudInit:
+    inline: |
+      #cloud-config
+      packages:
+        - squid
+      write_files:
+        - path: /etc/squid/conf.d/proxy-operator.conf
+          content: |
+            http_port 3128
+            http_access allow all
+            via off
+            forwarded_for off
+      runcmd:
+        - systemctl restart squid
+      # Optional: log in with `ssh debian@<ip>` (the Debian image's default
+      # user) to look around; `virsh console <name>` on the host works too.
+      # ssh_authorized_keys:
+      #   - ssh-ed25519 AAAA... you@laptop
+  attributes:
+    geo: home
+    purpose: crawl

docs/architecture.md

@@ -9,6 +9,7 @@
 | Provider contract | `internal/provider` | library | — | `Provider` interface, error taxonomy, deterministic naming, config, metrics decorator |
 | kubernetes provider | `internal/provider/kubernetes` | library | — | real Squid pods in this cluster (local dev/CI) |
 | gcp provider | `internal/provider/gcp` | library | — | Compute Engine VMs, four API calls, fire-and-forget ops |
+| kvm provider | `internal/provider/kvm` | library | — | VMs on libvirt hosts over SSH-forwarded sockets; image cache, overlay disks, NoCloud seeds |
 | Health engine | `internal/health` | Runnable | yes | through-the-proxy probes, thresholds, transition events |
 | Lease store | `internal/lease` | Runnable (expiry sweep) | no | in-memory leases + cooldowns, single mutex |
 | Discovery API | `internal/discovery` | Runnable | no | HTTP list/lease/release/report on `:8090` |
@@ -147,6 +148,25 @@ prov.ListByTag ─► AggregatedList(label filter,                   ─┘ prov
                     ReturnPartialSuccess: true)
 providerID = zones/<zone>/instances/<name> — zone-qualified, so Get/Delete
 stay correct even mid-replacement after a zone edit
+
+kvm provider (internal/provider/kvm/) — libvirt RPC over an SSH-forwarded unix socket, per host
+prov.Create ──► DomainLookupByName: exists → start if needed, done      ─┐ every step tolerates
+                else: ensure base image in pool (download on first use) │ the previous attempt
+                      overlay volume (exists = reuse)                    │ having got that far;
+                      seed ISO (always rebuilt — a cut-off upload must   │ the seed is the one
+                        never be trusted)                                │ thing redone
+                      DomainDefineXML + DomainCreate                    ─┘
+prov.Get    ──► DomainGetState + DomainGetMetadata + DomainInterfaceAddresses
+                  (ARP, then guest agent; first routable IPv4)
+                  running without IP = Provisioning; nostate = Provisioning
+prov.Delete ──► destroy (not running = fine) → undefine → delete overlay + seed by name
+prov.ListByTag ─► ConnectListAllDomains on every host, keep domains whose
+                    <metadata> carries managed=true; one host down fails the sweep,
+                    one unreadable domain is skipped
+providerID = hosts/<host>/domains/<name>; GC identity lives in the domain's
+<metadata> element (libvirt has no labels). All RPCs run under a context-
+bounded call: go-libvirt never times out on its own, so a cancelled reconcile
+closes the SSH connection to unblock it.
 ```
 
 The reconciler never watches provider-side resources (Pods or GCP VMs).
@@ -300,6 +320,45 @@ Each consuming package defines its own small recorder interface
 `metrics.Metrics` satisfies all of them structurally, so no package other
 than `cmd/main.go` imports the metrics package.
 
+### 10. Tracing (`internal/tracing/`)
+
+OpenTelemetry tracing, integrated with — not replacing — the logr/zap
+logging. Everything hangs off standard `OTEL_*` env vars: with no
+`OTEL_EXPORTER_OTLP_ENDPOINT` / `OTEL_TRACES_EXPORTER` set, no SDK is
+installed, spans are no-ops, and logs are byte-for-byte what they were.
+`OTEL_SDK_DISABLED=true` and `OTEL_TRACES_EXPORTER=none` force it off;
+`console` prints spans to stdout for local dev; sampling follows
+`OTEL_TRACES_SAMPLER(_ARG)`.
+
+Span topology — each unit of work is a new trace (watch events carry no
+incoming trace context):
+
+- `Reconcile Proxy` (root, via a `reconcile.Reconciler` decorator) →
+  `reconcile.managed` / `reconcile.replaceInstance` / `reconcile.delete`,
+  plus `status.patch` from the deferred flush. `reconcileExternal` does no
+  I/O and is unspanned.
+- `provider.create|get|delete|list` (client spans, `provider.WithTracing`
+  decorator wired outermost around `WithMetrics`); the GCP SDK's own
+  otelhttp transport contributes HTTP child spans automatically.
+- Kubernetes API calls become client child spans via a wrapped
+  `rest.Config` transport — gated on an existing parent span, so informer
+  list/watch long-polls and leader-election renewals never create root
+  spans. The kube-apiserver ignores incoming `traceparent` by design;
+  these spans are leaves.
+- Discovery API: one server span per request (named from the route
+  pattern), incoming W3C `traceparent` honored so clients' traces continue
+  into the operator; `/healthz` excluded.
+- `gc.sweep` per GC pass; `health.probe` per probe **only** with
+  `--trace-health-probes` (default off — probes run ~1/s per proxy).
+
+Log correlation: logr sinks never see a context, so trace IDs ride on the
+logger — `tracing.Start` re-derives the ctx logger from a captured base
+with `traceID`/`spanID` values (lowerCamel, matching `reconcileID`;
+Grafana/Loki derived-field regexes must match `traceID`, not `trace_id`).
+Re-deriving from the base rather than layering keeps zap from emitting
+duplicate keys on nested spans. GCP V(5) wire logs get the same keys from
+the slog handler's ctx.
+
 ## Decisions
 
 Judgment calls the spec left open, and deliberate deviations — recorded so
@@ -376,6 +435,41 @@ they read as choices, not accidents. Chronological by build step.
 - **Unknown GCP instance statuses map to `Stopped`:** the reconciler's
   answer to Stopped is delete-and-recreate, the always-safe move for
   cattle when the API grows a new state.
+- **KVM hosts are reached over SSH with the libvirt socket forwarded,**
+  not libvirtd's TCP/TLS listener: nothing to configure or expose on the
+  hypervisors beyond sshd, pure Go on the operator side (no cgo, no
+  libvirt libraries in the image), and the hosts list can grow by a
+  config edit because the providerID carries the host name.
+- **KVM base images are fetched by the operator into the host's pool**
+  through libvirt's upload stream, rather than expected to be pre-placed:
+  the operator then needs no filesystem access on the host and a new
+  host is usable with zero manual staging. The cost is a synchronous
+  first-time download inside Create.
+- **The KVM seed ISO is rebuilt on every Create attempt** before the
+  domain exists, instead of "exists → skip": a reconcile cancelled mid
+  upload leaves a truncated seed, and the compensating delete cannot run
+  because the connection was already closed to unblock the RPC. Skipping
+  it would boot a VM with no cloud-init and no retry would ever repair it.
+- **KVM `nostate` maps to `Provisioning`, not `Stopped`:** unlike GCP's
+  unknown statuses, `nostate` means libvirt could not determine the
+  state at all; answering that with delete-and-recreate is too drastic,
+  so the next poll decides.
+- **KVM guests boot UEFI by default, secure boot off.** Found on the
+  first real host: Debian 13's generic image hangs in GRUB under SeaBIOS
+  on a headless VM (Debian bug #1111240: `terminal_output gfxterm
+  serial` with a serial console and no video device) regardless of CPU
+  model or seed, and boots under OVMF with the serial console working.
+  The alternatives were a virtio console (loses the kernel's serial
+  output) or a video device the VMs have no use for. Every
+  current distro cloud image supports UEFI, so it is the default and
+  `firmware: bios` is the per-image escape; libvirt's firmware
+  autoselection (`<os firmware="efi">`) keeps the OVMF path out of the
+  operator's config. Secure boot is off so unsigned images boot too.
+- **A KVM domain GC cannot read is skipped, a host it cannot reach fails
+  the sweep.** GC never deletes what it does not see, so leaving one
+  domain out is safe; one corrupt domain blocking GC for every other one
+  is not. A whole host missing from the view would hide many, so that
+  still aborts.
 - **Kubernetes 403s classify as `ErrPermanent`** even though quota
   exhaustion also surfaces as 403 (indistinguishable from RBAC denial in
   `apierrors`): not hammering an API server that may never allow the
@@ -395,6 +489,15 @@ they read as choices, not accidents. Chronological by build step.
   cluster-wide Secret read RBAC — an unrestricted cache would hold every
   Secret in scope). Unlabelled referenced Secrets are invisible by
   construction, surfacing as `CloudInitError`.
+- **Deletion never gives up on its own, but can be released by hand:** a
+  permanent cleanup failure keeps retrying with the finalizer on, because
+  dropping it automatically would leak a running instance on any provider
+  that answers "permission denied". Where `Get` fails permanently the
+  reconciler still calls `Delete`, since it is idempotent and may finish
+  where `Get` cannot converge. `crawl.example.com/skip-cleanup: "true"`
+  abandons the instance and releases the object; it is checked before the
+  provider lookup, so it also frees a Proxy whose provider is gone from the
+  config.
 - **Events RBAC from the plan is omitted:** nothing wires an
   EventRecorder in the prototype, and granting verbs nothing uses would
   be RBAC lint noise. Add the marker together with the recorder if events
@@ -404,3 +507,24 @@ they read as choices, not accidents. Chronological by build step.
   logger to everything running under the manager — fighting that would
   mean two logging systems in one process. Noted as a deviation rather
   than silently ignored.
+- **Tracing is env-gated, not flag-gated:** it activates only when
+  `OTEL_EXPORTER_OTLP_ENDPOINT` / `OTEL_TRACES_EXPORTER` is set (user
+  decision). No collector configured means no SDK installed, no-op spans,
+  unchanged logs — the safe default for every existing deployment. The
+  one flag is `--trace-health-probes`, off by default, because probes at
+  ~1/s per proxy would dominate trace volume.
+- **Trace keys are `traceID`/`spanID`**, lowerCamel like `reconcileID` and
+  `providerID`, deliberately not the `trace_id` many Grafana derived-field
+  examples assume — configure the derived-field regex accordingly. logr
+  sinks can't read ctx, so the IDs ride on the ctx logger, re-derived from
+  a captured base per span so zap never emits duplicate keys.
+- **Probe→reconcile trace links are not attempted:** the health engine's
+  `GenericEvent` carries only namespace/name (no ctx), and the workqueue
+  coalesces events, so any link would be a guess. A health-triggered
+  reconcile starts a fresh trace; the probe that caused it is findable via
+  its own (opt-in) span and shared proxy attributes.
+- **No `traceparent` toward probe targets:** probe transports stay
+  uninstrumented so trace headers can never leak through a proxy to
+  external sites. The kube-apiserver ignores incoming `traceparent` by
+  design (public endpoint), so k8s client spans are leaves — in-process
+  traces, not cross-process ones.

docs/kvm-provider.md

@@ -0,0 +1,318 @@
+# The KVM provider
+
+Runs Managed proxies as VMs on your own libvirt/KVM hypervisors. The
+operator reaches each host over SSH, forwards the libvirt unix socket
+through that connection, and talks libvirt's own RPC over it — so the
+hosts need nothing beyond `sshd` and `libvirtd`, and the operator image
+carries no libvirt libraries. VMs boot a stock distro cloud image that the
+operator downloads into the host's storage pool on first use, with the
+Proxy's cloud-init delivered on a NoCloud seed ISO built in-process.
+
+## Hypervisor prerequisites
+
+Per host, once:
+
+1. **libvirt + KVM** (`libvirtd` running, `/dev/kvm` present).
+2. **An SSH user in the `libvirt` group**, so it may open
+   `/var/run/libvirt/libvirt-sock`. The operator authenticates with a
+   private key; nothing else on the host is touched.
+3. **A bridge to a network with DHCP** (e.g. `br0` bridged onto the LAN).
+   Each VM gets one virtio NIC on it and takes its IP from that network's
+   DHCP; the cluster must be able to reach those IPs for health probes
+   and for crawlers to use the proxy.
+4. **A storage pool** (default `default`, usually `/var/lib/libvirt/images`)
+   with room for one base image per distro (a few hundred MB) plus the
+   per-VM overlays (`diskSizeGb` each, thin-provisioned).
+5. **UEFI firmware for guests**: the `ovmf` package on Debian/Ubuntu,
+   `edk2-ovmf` on Fedora/RHEL. VMs boot UEFI by default (libvirt picks
+   the OVMF binary itself); a domain start fails with "no firmware
+   found" without it. Only `firmware: bios` images skip this.
+6. Optionally, **outbound internet from the VMs**: a vendor-data script
+   installs `qemu-guest-agent` from the distro mirrors on first boot.
+   Without it the VM still works — the operator falls back to the host's
+   ARP table to find the IP, which fills in once the guest sends traffic —
+   but the ARP table only sees traffic to the host itself, so on a plain
+   bridge the agent is in practice required.
+
+Check from the operator's point of view before wiring it in:
+
+```sh
+ssh virt@nas1.home.lan virsh -c qemu:///system list --all   # user can drive libvirt
+ssh virt@nas1.home.lan virsh -c qemu:///system pool-info default
+ssh virt@nas1.home.lan ip link show br0
+```
+
+## Cluster-side setup
+
+1. Create the SSH Secret from a key pair dedicated to the operator and a
+   `known_hosts` file holding every host's key. The worked example below
+   uses `~/.ssh/proxy-operator_ed25519` and `~/.ssh/kvm_known_hosts`,
+   the same paths the integration test and `make kvm-ssh-secret` default
+   to.
+
+   ```sh
+   # once: a key pair for the operator; the .pub goes on every host
+   ssh-keygen -t ed25519 -f ~/.ssh/proxy-operator_ed25519 -N '' -C proxy-operator
+   ssh-copy-id -i ~/.ssh/proxy-operator_ed25519.pub virt@nas1.home.lan
+
+   # once per host: its host key, under the address the *operator* will
+   # dial (hosts[].address), which may differ from what your laptop uses
+   ssh-keyscan -H nas1.home.lan >> ~/.ssh/kvm_known_hosts
+
+   # the Secret: the PRIVATE key (not the .pub) plus known_hosts
+   kubectl -n egress-proxies-operator-system create secret generic kvm-ssh \
+     --from-file=id_ed25519=$HOME/.ssh/proxy-operator_ed25519 \
+     --from-file=known_hosts=$HOME/.ssh/kvm_known_hosts
+   ```
+
+   `make kvm-ssh-secret` runs that last command as an apply, so it also
+   updates an existing Secret; override the paths with
+   `KVM_SSH_KEY=... KVM_KNOWN_HOSTS=...`. Putting the `.pub` in the
+   Secret is the classic mistake: the operator then fails at startup
+   with a "not a private key" error. Without `known_hosts`, set
+   `insecureIgnoreHostKey: true` and accept that a MITM could hand you a
+   fake hypervisor.
+
+   `config/manager/manager.yaml` mounts the Secret (optional) at
+   `/etc/proxy-operator/kvm` as two files, `id_ed25519` and
+   `known_hosts`, which is what `sshKeyFile` and `knownHostsFile` in the
+   provider config point at. The deployment starts fine without the
+   Secret, even with a `kvm` provider configured: only that provider's
+   proxies fail, and they recover once the Secret exists. Rotating the
+   key: re-run the command (or the make target) and restart the manager;
+   both files are read once, on the first connection, and cached.
+
+2. Add a provider entry to the providers config
+   (`config/manager/providers_config.yaml` in-cluster; full sample in
+   `config/samples/providers-config.yaml`):
+
+   ```yaml
+   - name: kvm-home
+     type: kvm
+     kvm:
+       sshKeyFile: /etc/proxy-operator/kvm/id_ed25519
+       knownHostsFile: /etc/proxy-operator/kvm/known_hosts
+       images:
+         debian-13:
+           url: https://cloud.debian.org/images/cloud/trixie/latest/debian-13-generic-amd64.qcow2
+       machineTypes:
+         small: {vcpus: 1, memoryMiB: 1024}
+       hosts:
+         - name: nas1
+           address: nas1.home.lan:22
+           user: virt
+           bridge: br0
+   ```
+
+   The operator checks both files at startup and logs a `WARNING:` line
+   when either is unreadable, but it does not refuse to start: the
+   provider set is built all-or-nothing, so exiting here would crash-loop
+   the manager and take the `kubernetes` and `gcp` providers with it.
+   The files are read for real on the first connection. A missing file is
+   a transient failure, so proxies heal by themselves once the Secret
+   lands; a key that does not parse is permanent and needs a fix.
+
+3. Apply a Proxy (`config/samples/proxy_kvm.yaml`) and watch it:
+
+   ```sh
+   kubectl get px -w
+   # NAME               MODE      PROVIDER   PHASE          IP             HEALTHY
+   # proxy-kvm-sample   Managed   kvm-home   Provisioning
+   # proxy-kvm-sample   Managed   kvm-home   Running        192.168.1.73
+   # proxy-kvm-sample   Managed   kvm-home   Ready          192.168.1.73   True
+   ```
+
+   The first Proxy for a given image on a given host sits in
+   `Provisioning` for the length of the image download; the operator log
+   shows `fetching base image into host pool` and `base image cached`
+   with the size and duration.
+
+## Config reference
+
+| Field | Required | Default | Meaning |
+|---|---|---|---|
+| `sshKeyFile` | yes | | private key used for every host |
+| `knownHostsFile` | unless `insecureIgnoreHostKey` | | OpenSSH `known_hosts` to verify host keys against |
+| `insecureIgnoreHostKey` | | `false` | skip host-key verification entirely |
+| `diskSizeGb` | | `10` | capacity of each VM's overlay disk; cloud-init's growpart expands the root fs into it |
+| `vendorData` | | | extra cloud-init vendor-data placed on every seed next to the Proxy's user-data. Beware that cloud-init drops any top-level key of a vendor-data **cloud-config** that the user-data also defines. Shipped as one part of a MIME multipart alongside the agent script when `installGuestAgent` is on |
+| `installGuestAgent` | | `true` | add the vendor-data script that installs and starts `qemu-guest-agent`. Turn off for images that ship it already or cannot reach a package mirror; IP discovery then depends on the host's ARP table |
+| `images.<key>` | | | the key names the image in `placement.image`. Letters, digits, dots, dashes and underscores only — it becomes the cached volume name `base-<key>.<format>` |
+| `images.<key>.url` | yes per entry | | http(s) URL of a cloud image (qcow2 or raw) |
+| `images.<key>.sha256` | | | expected digest; verified after download, a change triggers a re-download |
+| `images.<key>.format` | | `qcow2` | `qcow2` or `raw` |
+| `images.<key>.firmware` | | `uefi` | `uefi` (OVMF, secure boot off) or `bios` (SeaBIOS) for images without an EFI system partition; Debian 13 hangs in GRUB under BIOS on a headless VM, see *Known gaps* |
+| `machineTypes.<key>` | ≥ 1 | | `{vcpus, memoryMiB}` size profile |
+| `hosts[].name` | yes | | the `placement.zone` value that selects this host; unique. Letters, digits, dots, dashes and underscores only — it becomes part of the providerID `hosts/<name>/domains/<vm>` |
+| `hosts[].address` | yes | | SSH endpoint, `host:port` |
+| `hosts[].user` | yes | | SSH user, member of the `libvirt` group |
+| `hosts[].socket` | | `/var/run/libvirt/libvirt-sock` | libvirt socket path on the host |
+| `hosts[].pool` | | `default` | storage pool for base images, overlays and seeds |
+| `hosts[].bridge` | yes | | host bridge for the VM's NIC |
+
+## Placement
+
+| Proxy field | Meaning for kvm |
+|---|---|
+| `placement.zone` | host name from `hosts`. May be omitted when exactly one host is configured; otherwise required. Unknown → `Failed` |
+| `placement.machineType` | key in `machineTypes`. Unknown → `Failed` |
+| `placement.image` | key in `images`, or an `http(s)://` URL used directly. Anything else → `Failed` |
+| `placement.region` | ignored |
+
+`Failed` here means the reconciler stops retrying and the message names
+the offending value; fix the spec (which replaces the VM) or the config.
+
+## What lands on the host
+
+For a Proxy whose deterministic name is `proxy-abc…`, on the chosen
+host's pool:
+
+| Object | Name | Lifetime |
+|---|---|---|
+| base image | `base-<key>.qcow2` (or `base-<url-hash>.qcow2` for a URL) | cached; survives Proxy deletion |
+| image marker | `base-<key>.qcow2.sha256` | with the base image |
+| overlay disk | `proxy-abc….qcow2`, qcow2 backed by the base | with the Proxy |
+| seed ISO | `proxy-abc…-seed.iso` | with the Proxy |
+| domain | `proxy-abc…` | with the Proxy |
+
+The domain is a q35 machine with host-passthrough CPU, the overlay on
+virtio, the seed on a SATA cdrom, one virtio NIC on the bridge, a serial
+console, the guest-agent channel, a virtio RNG and no graphics. Its
+`<metadata>` carries the operator's element (managed flag, owning UID,
+creation time) — that is how orphan GC recognises its own VMs, since
+libvirt has no labels.
+
+The seed's `user-data` is the Proxy's `cloudInit`, **byte for byte**. Any
+format cloud-init accepts works, including a Jinja template, a MIME
+archive, a shell script or a gzipped payload; the operator never parses or
+re-renders it.
+
+The guest agent rides along in `vendor-data`, as a **shell script** rather
+than a cloud-config. That is the only shape cloud-init cannot drop:
+vendor-data cloud-config is merged under the user's own document with
+mergers that keep the user-data's value for every key both define and never
+append lists, so a Proxy carrying its own `packages:` silently lost the
+agent and sat in `Provisioning` forever. The strategy cannot be overridden
+from either document — `merge_how` in user-data governs only the first
+source, and `merge_how` in vendor-data is consumed and discarded before the
+document is stored. A vendor-data script skips all of it: cloud-init gives
+vendor-data its own handler chain, writes scripts to a separate directory
+and runs them from `cc_scripts_vendor`, after the user's packages are
+installed and before the user's `runcmd`. The script is idempotent, picks
+whichever of `apt-get`, `dnf`, `yum`, `zypper` or `apk` the image has, and
+logs into `/var/log/cloud-init-output.log`. Set `installGuestAgent: false`
+to leave it out. When `vendorData` is also configured, the two travel as
+separate parts of a MIME multipart vendor-data.
+
+## The image cache
+
+The base image is downloaded **by the operator, through libvirt**, into
+the host's pool the first time a Proxy asks for it on that host — nothing
+is pre-placed on the hypervisor, and the operator needs no filesystem
+access there. The bytes stream from the URL through the operator into
+the pool with a running sha256; nothing is buffered. The marker volume is
+written last and holds the digest, so a crash mid-download leaves a base
+volume without a marker, which the next attempt deletes and redoes.
+
+A re-download happens when: the marker is missing, or `sha256` is
+configured and differs from the marker's content. Otherwise the cached
+copy is used for as long as it exists, even if the URL's content changed
+upstream (a `latest` URL is pinned at the moment of first fetch, per
+host).
+
+To evict manually:
+
+```sh
+ssh virt@nas1 virsh -c qemu:///system vol-delete --pool default base-debian-13.qcow2.sha256
+ssh virt@nas1 virsh -c qemu:///system vol-delete --pool default base-debian-13.qcow2
+```
+
+⚠️ **Do not change an image entry's `url` or `sha256`, and do not evict
+its base volume, while Proxies using that image exist on the host.** The
+overlays back onto the base file; deleting or replacing it corrupts every
+VM that uses it. Delete those Proxies first, or add the new image under a
+new key and move Proxies over by changing their `placement.image` (which
+replaces the VM).
+
+## Logging into a VM
+
+- Put your key in the Proxy's cloud-init (`ssh_authorized_keys`) and
+  `ssh debian@<ip>` (Debian) / `ssh ubuntu@<ip>` (Ubuntu).
+- Or on the host: `virsh console proxy-abc…` attaches to the serial
+  console; cloud-init's output scrolls by there on first boot.
+- `virsh domifaddr proxy-abc… --source arp` / `--source agent` shows what
+  the operator sees when it looks for the IP.
+
+## Logging
+
+The provider logs through controller-runtime's logger, named `kvm`, with
+`provider`, `host` and `name` (the domain) on every line.
+
+- `--zap-log-level=debug` (logr V(1)): one line per provider operation
+  (`domain defined`, `KVM domain ensured running`, ...) **and one
+  `libvirt call` line per libvirt RPC**, named `kvm.libvirt`, with
+  `rpc` (the libvirt API function, e.g. `virDomainLookupByName`), the
+  identifiers it was given (`domain`, `pool`, `volume`), curated results
+  (`state`, `path`, `interfaces`), `duration`, and on failure `error`
+  plus `libvirtError` (the code name, e.g. `ErrNoDomain`) and
+  `libvirtCode`. Connection events (`libvirt host connected`, dial
+  failures, `libvirt connection dropped` with a reason) log at the same
+  level. A Create is about ten RPCs; a Get is four.
+- `--zap-log-level=2`: the same lines also carry the domain and volume
+  `xml`, the `metadata` element, the interface `addresses` and the
+  domain `names` from a listing.
+- Cloud-init is never logged at any level: the seed ISO upload reports
+  only `length` and `duration`. There is no raw wire tier like the GCP
+  provider's V(5); go-libvirt exposes no hook for it.
+
+## Known gaps
+
+- **No quota or capacity detection.** libvirt reports an out-of-space
+  pool or an over-committed host as an ordinary error; the reconciler
+  treats it as transient and retries with backoff rather than the slower
+  quota backoff.
+- **Orphan volumes without a domain are invisible to GC.** A crash
+  between creating the volumes and defining the domain leaves an overlay
+  and seed that `ListByTag` cannot see (it lists domains). They are
+  cleaned when the same Proxy reconciles again (Delete removes volumes by
+  name even with no domain), but a Proxy CR that is gone for good leaves
+  them for `virsh vol-list` to find.
+- **A host removed from the config takes its VMs with it.** `Delete` for a
+  providerID naming an unconfigured host is a no-op success, so the Proxy
+  finishes deleting instead of pinning its finalizer, but the domain and its
+  volumes stay on the hypervisor and orphan GC cannot see them either (it
+  only sweeps configured hosts). Delete the Proxies before retiring a host,
+  or clean up afterwards with `virsh undefine --nvram` plus `virsh vol-delete`.
+  `Get` still fails permanently for such a providerID on purpose: a typo in
+  `hosts` must not look like a missing VM and trigger a rebuild elsewhere.
+- **The first image fetch is synchronous.** It holds a reconcile worker
+  for the download (LAN speed, a few hundred MB, once per image per
+  host). Other Proxies keep reconciling on the remaining workers.
+- **Replacing an image in use breaks running VMs** — see the warning
+  under *The image cache*.
+- **IP discovery needs either guest traffic or the agent.** A VM on a
+  bridge with no DHCP never gets an address and stays `Provisioning`
+  forever; check `virsh console`. The same symptom with a booted, addressed
+  VM means the guest agent never came up: check `systemctl status
+  qemu-guest-agent`, `cloud-init status --long` and the vendor script's
+  output in `/var/log/cloud-init-output.log` (a VM without outbound
+  internet cannot install it). A user-data that disables vendor-data
+  (`vendor_data: {enabled: false}`) also removes the agent, by design.
+- **Debian 13 cloud images hang in GRUB under BIOS on a headless VM**
+  ([Debian bug #1111240](https://bugs.debian.org/1111240), open, in
+  `grub2`): trixie's image ships `terminal_output gfxterm serial` in its
+  GRUB config, and with a serial console but no video device (exactly
+  the domain this provider defines) GRUB prints "Booting" and never
+  hands over to the kernel. Not host-specific; reproduced by the Debian
+  cloud team. The same image boots under UEFI with the serial console
+  intact, which is why `firmware` defaults to `uefi`. Debian 12
+  (bookworm) images are unaffected and boot either way. Images that
+  need `firmware: bios` are the exception, not the rule.
+
+## Testing
+
+Unit tests run over an in-memory fake of the libvirt API. The optional
+integration test against a real host is described in
+[testing.md](testing.md#the-kvm-integration-test-real-hypervisor); its
+`-v` output includes the `libvirt call` trace above, at the verbosity
+`KVM_TEST_LOG_LEVEL` selects (default 1).

docs/plans-executions/2026-08-24-1025-otel-tracing.md

@@ -0,0 +1,183 @@
+# Execution log: OpenTelemetry tracing integrated with logr/zap logging
+
+Plan: `docs/plans/2026-08-24-1025-otel-tracing.md`
+
+- [x] Step 1 — Dependencies
+- [x] Step 2 — New package `internal/tracing`
+- [x] Step 3 — `provider.WithTracing` decorator
+- [x] Step 4 — `cmd/main.go` wiring
+- [x] Step 5 — Reconciler spans
+- [x] Step 6 — Discovery server
+- [x] Step 7 — GC + health
+- [x] Step 8 — GCP wire-log enrichment
+- [x] Step 9 — Manifests + docs
+
+## Step 1 — Dependencies
+
+Aligned the pre-existing indirect skew (otel core v1.44.0 vs otlptrace exporters
+v1.40.0) and added the new direct deps in one shot:
+
+```bash
+go get go.opentelemetry.io/otel@v1.45.0 \
+  go.opentelemetry.io/otel/sdk@v1.45.0 \
+  go.opentelemetry.io/otel/trace@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp@v1.45.0 \
+  go.opentelemetry.io/otel/exporters/stdout/stdouttrace@v1.45.0 \
+  go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp@v0.70.0
+go mod tidy
+```
+
+MVS side-effects worth recording: `logr v1.4.3→v1.4.4`, `httpsnoop
+v1.0.4→v1.1.0`, `grpc-gateway/v2 v2.27.7→v2.29.0`, `proto/otlp v1.9.0→v1.11.0`,
+plus a `genproto/googleapis/api` pseudo-version bump. Full `make test` passed
+against the bumped graph (`google.golang.org/api v0.292.0` and k8s v0.36
+tolerate otelhttp v0.70.0).
+
+Worth noting: the first `go mod tidy` ran *before* any first-party code
+imported `otlptracehttp`/`stdouttrace`, so it silently dropped those two
+modules again; the Step 2 tidy re-added them. The plan's semconv question
+resolved to `semconv/v1.43.0` — that's what `sdk@v1.45.0/resource/builtin.go`
+imports, so first-party code uses the same version to avoid
+`ErrSchemaURLConflict` in the common path.
+
+## Step 2 — `internal/tracing` package
+
+Landed as planned: `tracing.go` (env-gated `Setup`, hand-rolled exporter
+selection), `logger.go` (`Start`/`StartSpan`/`ContextWithLogger` with the
+base-logger ctx key that prevents duplicate `traceID` zap fields on nested
+spans), `reconciler.go`, `transport.go`, `http.go`, `options.go`; tests for
+all of it (first use of `sdk/trace/tracetest` in the repo).
+
+Two deviations from the plan's letter:
+
+- **k8s transport gating is a custom RoundTripper, not `otelhttp.WithFilter`**
+  (`parentGatedTransport`): requests without a parent span bypass the otel
+  transport entirely, so the no-root-spans-from-informers guarantee doesn't
+  depend on otelhttp filter semantics for transports.
+- **`HTTPMiddleware` must copy the route pattern back.** The logger-injecting
+  inner handler wraps the request via `WithContext` (a shallow copy), so the
+  mux records the matched pattern on the copy while otelhttp's post-routing
+  span rename reads the original. Found by the middleware test (span named
+  `"GET"` instead of `"GET /v1/things/{id}"`); fixed with `r.Pattern =
+  r2.Pattern` after `next.ServeHTTP`.
+
+Also: both the transport and the middleware pass explicit W3C propagators
+instead of relying on the global, so behavior is deterministic under tests
+and when tracing is disabled. `Setup` tests reset the global provider to a
+fresh noop per case — restoring otel's own default delegate triggers a
+"Setting tracer provider to its current value" warning from the SDK.
+
+## Step 3 — `provider.WithTracing`
+
+`internal/provider/tracing.go` mirrors `metrics.go` exactly (same wrap shape,
+same `resultLabel` classification reused as the `provider.result` span
+attribute); tests reuse `staticProvider` from `metrics_test.go`. `ErrNotFound`
+maps to span status Ok as planned — the reconciler polls `Get` to NotFound
+during replacement/deletion, so it's an answer, not a failure.
+
+One small API addition to `internal/tracing` for this: exported
+`tracing.Tracer(opts...)`, since the decorator lives in package `provider`
+and couldn't reach the unexported option resolver. The `cmd/main.go` wiring
+(`WithTracing` outermost around `WithMetrics`) lands with Step 4's commit —
+same file, one commit.
+
+## Step 4 — `cmd/main.go` wiring
+
+As planned: `tracing.Setup` right after `ctrl.SetLogger`; manager rest.Config
+wrapped via `restCfg := ctrl.GetConfigOrDie(); restCfg.Wrap(...)` (the
+previous inline call left nowhere to wrap); providers decorated tracing-
+outermost; explicit trace flush after `mgr.Start` returns on both the error
+and clean paths, with a fresh 10s context since the signal ctx is already
+cancelled by then.
+
+The kubernetes provider grew `NewWithTransportWrapper(ctx, cfg, wrap)` (its
+client is built from its own `ctrl.GetConfig()`, invisible to the manager's
+wrapped config); `New` now delegates with a nil wrapper, so `newWithClient`
+tests stayed untouched, and main registers a closure — the same pattern the
+gcp constructor already used for wire-log options.
+
+Deviation: the plan put `--trace-health-probes` here, but the flag needs the
+`health.Engine.TraceProbes` field that Step 7 introduces — moved there to
+keep every commit compiling.
+
+## Step 5 — Reconciler spans
+
+`SetupWithManager` completes with `tracing.NewReconciler("Proxy", r)`;
+sub-spans `reconcile.managed` / `reconcile.replaceInstance` /
+`reconcile.delete` open at the top of each state machine, and `status.patch`
+opens inside the deferred flush closure so it stays within the root span
+while its error still folds into the recorded result. `reconcileExternal`
+left unspanned as planned (no I/O).
+
+Two small judgment calls: the sub-spans carry no extra attributes — the
+provider decorator already records `provider.id`, and the root span carries
+the object identity, so duplicating them was noise; and `status.patch` is
+emitted every reconcile even when nothing changed (the no-op compare is the
+span's content — a real PATCH shows up as its k8s HTTP child). Tests that
+call `r.Reconcile` directly bypass the wrapper; with no global tracer set
+they see no-op spans, so the existing fake-client and envtest suites run
+unchanged.
+
+## Step 6 — Discovery server
+
+Middleware chain is now recover → tracing (server span + request logger) →
+request-log → body cap → auth; the request-log middleware and the three
+handler error sites log via `logf.FromContext(r.Context())` — which is
+`s.log` enriched with the request's traceID/spanID by the tracing
+middleware, not a different logger (logr sinks can't read ctx at log time,
+so per-request values must ride on the logger instance in the ctx; user
+asked, answered in-session).
+
+Deviation from the plan's letter: `recoverMiddleware` keeps `s.log`. It sits
+*outside* the tracing layer, so its request ctx never has the enriched
+logger — switching it to `FromContext` would silently drop the `"discovery"`
+name and gain nothing.
+
+## Step 7 — GC + health
+
+`gc.sweep` runs in a root span with `gc.providers` / `gc.deleted` counters
+(a failed orphan delete no longer counts as deleted — the loop grew an
+explicit `continue`). The health engine got the deferred `--trace-health-probes`
+flag and `TraceProbes` field; the probe call moved into `runProbe`, which
+wraps it in a `health.probe` client span only when enabled, ending before
+`record` (which stays ctx-free by design). Probe transports remain
+uninstrumented so no traceparent can leak through a proxy to external
+targets. Probe→reconcile span links stay out of scope (GenericEvent carries
+no ctx; the workqueue coalesces events) — recorded in the architecture
+Decisions in Step 9.
+
+## Step 8 — GCP wire-log enrichment
+
+`wireFilterHandler.Handle` clones the record and appends `traceID`/`spanID`
+when the ctx carries a valid span — same keys as the logr enrichment, added
+before the elision pass (both values are well under the 1KiB threshold).
+The new `wirelog_test.go` covers the enrichment, that the JWT/token security
+filter still drops non-wire Debug records even with a span present, and that
+spanless records stay unchanged.
+
+## Step 9 — Manifests, docs, lint
+
+`config/manager/manager.yaml` gained the OTel env block (downward-API
+`POD_NAME`/`POD_NAMESPACE` deliberately listed *before*
+`OTEL_RESOURCE_ATTRIBUTES` — `$(VAR)` expansion only sees earlier vars),
+with the OTLP endpoint and sampler left as commented examples so deployments
+stay tracing-off by default. `docs/architecture.md` got "### 10. Tracing"
+plus five Decisions entries; README got a Tracing section.
+
+`make lint` surfaced 16 new-on-branch issues (checked with
+`golangci-lint run --new-from-rev main`; the other ~43 pre-date this work):
+
+- one gofmt slip, 13 goconst repeats — fixed with `env*`/`exporter*`
+  constants in `internal/tracing/tracing.go` shared by the tests;
+- two logcheck hits ("function takes both a context and a logger"):
+  `Setup` now reads its logger from ctx (`logf.FromContext`, caller seeds
+  via `logf.IntoContext` — the linter's sanctioned pattern), and
+  `ContextWithLogger` carries a justified `//nolint:logcheck`, since being
+  the IntoContext-analogue is its purpose.
+
+Worth noting: pre-existing lint debt (50 goconst etc. on `main`) was left
+untouched — `make lint` still fails overall; only branch-introduced issues
+were cleaned. The lint fixes changed `Setup`'s signature after Step 2/4 had
+landed, so those commits show the two-arg version; this commit is where it
+settles.

docs/plans-executions/2026-08-24-1224-tracing-e2e.md

@@ -0,0 +1,68 @@
+# Execution log: e2e test — OTel tracing against real Tempo
+
+Plan: `docs/plans/2026-08-24-1224-tracing-e2e.md`
+
+- [x] Step 1 — `test/e2e/tracing_test.go`
+- [x] Step 2 — Makefile
+- [x] Step 3 — Docs
+
+## Steps 1–3 — spec, Makefile, docs (one commit)
+
+The three steps landed together — the spec is one new file and the other
+two are its wiring. `Describe("OTel tracing", Ordered)` is fully
+self-contained (own ns create → `make install`/`make deploy` → teardown)
+because Ginkgo randomizes top-level container order, so it cannot share the
+Manager Describe's deployment. It reuses the package-level `namespace` /
+`managerImage` and the suite's idioms (`utils.Run`, curl-pod with the
+restricted-PSS overrides JSON, log-substring `Eventually`s).
+
+Judgment calls beyond the plan's letter:
+
+- The squid pre-pull (`docker pull` + `kind load`) is **best effort** — a
+  missing docker binary logs a note and continues rather than failing the
+  spec; the 5m Ready timeout still covers an in-cluster pull.
+- The OTLP preflight pod prints per-attempt HTTP codes and a final
+  `OTLP_OK`/`OTLP_UNREACHABLE` marker; the assertion quotes the pod's
+  output, so an unreachable endpoint names itself in the failure.
+- `kubectl set env` is passed the literal
+  `OTEL_RESOURCE_ATTRIBUTES=...$(POD_NAME)...` string via `exec.Command` —
+  no shell involved, kubectl stores `$()` verbatim, and the in-place update
+  keeps the var after the downward-API vars it references.
+- Tempo helpers are stdlib-only; `/api/traces/<id>` is decoded as
+  OTLP-JSON (`batches[].scopeSpans[].spans[].name`), which is Tempo's
+  actual shape (not Jaeger's).
+
+Verified so far: `go vet -tags=e2e ./...` clean.
+
+## Live run against homelab Tempo
+
+First attempt failed before the suite started — Docker Desktop wasn't
+running (`kind` could not create the cluster), and the failure was masked
+to exit 0 by a `| tail` pipe on the make invocation (no pipefail in that
+shell). Rerun with Docker started first and no pipe:
+
+```bash
+TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e
+```
+
+Result: **SUCCESS — 4/4 specs (Manager smoke + both tracing Its), 219 s**,
+kind cluster auto-deleted. Run id `e2e-1787567624494810000`; the traces are
+findable in Grafana with TraceQL
+`{resource.test.run.id="e2e-1787567624494810000"}`. Both proxies reached
+`Ready` on real squid pods; the create trace carried
+`Reconcile Proxy` / `reconcile.managed` / `provider.create` /
+`status.patch` and the expected resource attrs; the deletion trace carried
+`reconcile.delete` / `provider.delete`.
+
+Worth noting: the OTLP preflight and both Tempo polls succeeded on the
+in-cluster → LAN path (kind on macOS reaches 192.168.0.30 through Docker
+Desktop's NAT), so no extra networking setup is needed on this machine.
+
+The plan's negative verification also ran: with a deliberately wrong
+endpoint (`OTLP_ENDPOINT=http://192.168.0.30:9999`) the tracing spec
+failed in the BeforeAll preflight after ~52 s with
+`OTLP endpoint http://192.168.0.30:9999 is not reachable from inside the
+kind cluster; curl output: OTLP_UNREACHABLE` — a named, fast failure
+instead of a 2-minute opaque search timeout — and teardown still deleted
+the kind cluster (`make cleanup-test-e2e` run explicitly, since a failing
+`go test` skips the Makefile's cleanup step).

docs/plans-executions/2026-09-04-1404-kvm-provider.md

@@ -8,9 +8,9 @@ Plan: [2026-09-04-1404-kvm-provider.md](../plans/2026-09-04-1404-kvm-provider.md
 - [x] Step 3 — Transport + errors (`conn.go`, `errors.go`)
 - [x] Step 3b — Image cache (`image.go`)
 - [x] Step 4 — Provider methods (`kvm.go`) over a fake API
-- [ ] Step 5 — Wiring, manifests, samples, docs, CHANGELOG
+- [x] Step 5 — Wiring, manifests, samples, docs, CHANGELOG
-- [ ] Step 6 — Integration test against a real hypervisor
+- [x] Step 6 — Integration test against a real hypervisor (written and compiled; first real run is part of Step 7)
-- [ ] Step 7 — Manual validation + MR
+- [x] Step 7 — Manual validation + MR
 
 ## Step 0 — Save plan + branch
 
@@ -69,6 +69,9 @@ Two design choices differ from the plan text:
   `<disk type="volume"><source pool=... volume=.../>`, so only the *base*
   image path is ever looked up (the overlay's `<backingStore>` needs a real
   path). Fewer RPCs and the builder's inputs are all names.
+  **Reverted in Step 7**: volume-referenced disks cannot start on an
+  AppArmor host, see there. The domain XML is back to `type="file"` with
+  the two `StorageVolGetPath` calls the plan had.
 - **Capacities are always `unit="bytes"`.** libvirt's `G` means GiB but
   `GB` means 10^9; spelling the byte count out removes the ambiguity from
   both the overlay and the seed/base volumes.
@@ -78,7 +81,9 @@ The metadata element is written with a default namespace
 marshal. libvirt may hand it back prefixed; `parseInstanceMetadata` is
 tested against both spellings since `encoding/xml` matches on the namespace
 URI. Whether libvirt accepts the default-namespace form on `DomainDefineXML`
-is confirmed in Step 6 against a real host, not here.
+is confirmed in Step 6 against a real host, not here. (Step 7: it does,
+but `DomainGetMetadata` returns the element with no namespace at all; the
+parser now matches on local name only.)
 
 Checked before relying on `github.com/kdomanski/iso9660` for the seed: its
 filename mangling lowercases and keeps `-`, so `user-data`/`meta-data`/
@@ -283,3 +288,386 @@ uncovered lines are the real SSH/libvirt dial path and log-only
 branches. `go vet` and `-race` (three runs) are clean. Wiring into
 `cmd/main.go` is Step 5, so `New` is not yet reachable from a running
 operator.
+
+## Step 6 — Integration test
+
+Done before Step 5, at the user's request, after a discussion of what the
+unit tests can and cannot prove: they run over an in-memory fake of the
+libvirt calls, so every assumption about libvirt's real behaviour (domain
+XML accepted, raw qcow2 upload + pool refresh usable as a backing image,
+guest boots and reports an address) needed a test against a real host.
+The wiring in Step 5 is not a prerequisite — the test drives the provider
+directly.
+
+`internal/provider/kvm/kvm_integration_test.go` is behind
+`//go:build integration` and skips itself under `-short` or when any of
+`KVM_TEST_HOST`, `KVM_TEST_USER`, `KVM_TEST_SSH_KEY`, `KVM_TEST_BRIDGE`,
+`KVM_TEST_IMAGE_URL` is unset. Optional knobs beyond the plan's list:
+`KVM_TEST_KNOWN_HOSTS` (without it the run disables host-key checking
+and logs that), `KVM_TEST_IMAGE_SHA256`, `KVM_TEST_POOL`,
+`KVM_TEST_SOCKET`, `KVM_TEST_TIMEOUT` (default 20 m, must cover a cold
+image download) and `KVM_TEST_KEEP` to leave a failed run's VM behind for
+`virsh console`.
+
+One sequential test, `TestKVM_lifecycle`, not subtests: each stage
+depends on hypervisor state the previous one left. Create (timed, so the
+log shows the image fetch), re-Create returns the same ID, poll Get to
+Running with an IPv4 (Stopped fails fast with a hint to use the console),
+UID and CreatedAt survive the metadata round-trip, ListByTag includes it,
+Delete, Get → NotFound, second Delete is a no-op, ListByTag excludes it,
+and the pool is inspected through the provider's own connection pool
+(`p.hosts.call`, reachable because the test is in package `kvm`): overlay
+and seed gone, base image and marker kept. A TCP connect to the guest's
+port 22 is attempted but only logged, since the test machine may not
+route to the bridge network. Cleanup deletes the VM on failure with its
+own two-minute budget, because the test context may already be spent.
+
+Makefile target, so the invocation is not something to remember:
+
+```bash
+make test-integration-kvm
+# = go test -race -tags=integration -count=1 -v -timeout 40m -run TestKVM ./internal/provider/kvm/
+```
+
+`docs/testing.md` gained the kvm package rows in the suite table, a
+"live libvirt" bullet under the deliberately-not-covered list, and a
+section on running this test, with the deviation from the testcontainers
+convention called out as the plan asked.
+
+Worth noting: **the test has not been executed yet.** This session had
+no hypervisor credentials; it was verified with
+`go vet -tags=integration ./...` and by running it without the
+environment (self-skip). Its first real run is the opening act of
+Step 7's manual validation, and it is the point at which the Step 2 and
+Step 3b "confirm on a real host" notes get answered. The test's config
+is built directly rather than through the provider package's validation
+(unexported), so a typo in an env var surfaces from `New` or from
+libvirt, not from a validation message.
+
+## Step 5 — Wiring, manifests, samples, docs, CHANGELOG
+
+Done after Step 6 (see that entry for why the order flipped). Everything
+the plan listed, plus a few things it did not:
+
+- `cmd/main.go`: `"kvm": kvm.New` in the builtins map. No RBAC change —
+  the provider talks to hypervisors, not the API server.
+- `config/manager/manager.yaml`: `kvm-ssh` Secret mounted read-only at
+  `/etc/proxy-operator/kvm` with `optional: true`, so deployments without
+  a kvm provider are unaffected. It nests under the providers-config
+  mount at `/etc/proxy-operator`; kustomize renders it (`kubectl
+  kustomize config/default` checked). The container runs as uid 65532
+  and Secret files default to 0644, so the key is readable without an
+  `fsGroup`; the `kubectl create secret` recipe is in a comment next to
+  the mount, in `docs/kvm-provider.md` and in the README.
+- `config/samples/providers-config.yaml`: `kvm-home` block with Debian 13
+  and Ubuntu 24.04 official image URLs, two machine types, one host, and
+  every optional field shown commented out. Parsed through
+  `provider.LoadConfigFile` in a throwaway test to make sure the sample
+  validates. `config/samples/proxy_kvm.yaml` uses the GCP sample's squid
+  cloud-init and shows `ssh_authorized_keys` commented out rather than
+  set — a sample with a placeholder key would either fail cloud-init or
+  invite pasting a real key into a committed file. Added to the samples
+  kustomization; `config/manager/providers_config.yaml`'s comment now
+  mentions kvm.
+- `docs/kvm-provider.md`: prerequisites with a three-line preflight
+  (`virsh list`, `pool-info`, `ip link` over ssh), cluster setup, the full
+  config reference table, placement table, a table of what lands on the
+  host and its lifetime, how the image cache works and how to evict, the
+  **warning not to change or evict an image while Proxies use it** (the
+  reviewer's finding from Step 4, carried as a documented rule since the
+  content-addressed-naming alternative was not chosen), how to log in,
+  and the known gaps.
+- README: providers bullet and a "KVM setup" section mirroring the GCP
+  one. `docs/architecture.md`: components row, a §5 block for the kvm
+  call flow in the same style as the other two, and five decision-log
+  entries (SSH transport, operator-fetched images, seed always rebuilt,
+  `nostate` → Provisioning, skip-vs-fail in the GC sweep).
+- `CHANGELOG.md` entry at the top, stating explicitly that the provider
+  is not yet validated on a real host.
+
+Verification: `go build ./...`, `go vet ./...`, `go test -short` on
+`cmd` and `internal/provider/...`, and both kustomizations rendered.
+`hack/providers-dev.yaml` untouched, as planned.
+
+Worth noting: the CRD has no rule requiring all three placement fields
+(that is GCP's own check), so the single-host "zone may be omitted"
+behaviour works without an API change. And with this step the branch is
+feature-complete but **unproven**: Step 7 runs the integration test and
+the end-to-end checklist against a real hypervisor before the MR.
+
+## Step 7 — Manual validation + MR (in progress)
+
+Host: `beelink` (Ubuntu, libvirt 11.6.0, QEMU 10.1.0, pool `default` at
+`/srv/vms/images` on local ext4, bridge `br0`), reached over Tailscale as
+`beelink.tail8c69c.ts.net`, SSH user `novakj`. Not the `nas1.home.lan`
+the plan and samples name; that host does not resolve from the dev box.
+
+```bash
+export KVM_TEST_HOST=beelink.tail8c69c.ts.net:22
+export KVM_TEST_USER=novakj
+export KVM_TEST_SSH_KEY=$HOME/.ssh/proxy-operator_ed25519
+export KVM_TEST_KNOWN_HOSTS=$HOME/.ssh/kvm_known_hosts
+export KVM_TEST_BRIDGE=br0
+export KVM_TEST_IMAGE_URL=https://cloud.debian.org/images/cloud/trixie/latest/debian-13-generic-amd64.qcow2
+make test-integration-kvm
+```
+
+### Run 1 and 2: `Could not open '/srv/vms/images/base-test-image.qcow2': Permission denied`
+
+Everything up to `DomainCreate` worked on the first try against a real
+host, which answers the open notes from Steps 2 and 3b: the SSH-forwarded
+libvirt handshake, the raw qcow2 upload plus pool refresh as a backing
+image, the default-namespace metadata element, and `DomainDefineXML` for
+the generated XML were all accepted by libvirt 11.6. QEMU then exited at
+start with `Permission denied` on the base image.
+
+Ownership was ruled out the slow way: the file was `root:root 0600` (the
+dir-pool default; libvirt's DAC driver chowns the chain at start and
+restores it after a failed start, so that observation meant nothing),
+`qemu.conf` was all defaults (`libvirt-qemu`, `dynamic_ownership=1`), and
+after a manual `chown libvirt-qemu:kvm` the second run failed identically.
+
+The actual cause is the Step 2 choice of `<disk type="volume">`.
+libvirt's AppArmor helper builds each domain's profile from the domain XML
+without consulting the storage driver, and its `add_file_path` only emits a
+rule when the source has a `path`; a volume-referenced disk has pool and
+volume names instead, so neither the overlay nor its backing image gets a
+rule and QEMU is denied on the first one it opens. Every stock Debian and
+Ubuntu hypervisor confines QEMU this way. The unit tests could not have
+caught it: the fake accepts either form.
+
+Fix, in this step: `buildDomainXML` takes `DiskPath`/`SeedPath` and emits
+`type="file"` disks; `ensureOverlay` and `writeSeed` return the volume
+handles (the exists-already branch now does a `StorageVolLookupByName`),
+and Create resolves both paths with `StorageVolGetPath` before defining
+the domain. Two extra cheap RPCs per Create. `TestBuildDomainXML_fieldByField`
+now fails on any `type="volume"` or `pool=` attribute so the design cannot
+drift back, and `TestCreate_freshHost` asserts the disk sources equal the
+paths the fake reports.
+
+Worth noting: the first two runs left the base image and its marker in
+the pool as designed, so later runs skip the 435 MB download.
+
+### Run 3: `parsing domain metadata: expected element <instance> in name space … but have no name space`
+
+With file-backed disks, Create returned in 1 s (image cached) and the
+domain started. Get then failed to parse the metadata: libvirt 11.6 finds
+the element by our URI but returns it as a bare `<instance>` with no
+namespace declaration at all. Step 2 had tested the default-namespace and
+prefixed spellings and left "does libvirt accept the default-namespace
+form" for the real host; it does, it just does not give it back that way.
+
+Fix: `parseInstanceMetadata` matches on the local name only, since the
+lookup already selected the element by URI. The fake now strips the
+declaration when storing metadata, so the provider's Get and ListByTag
+tests parse the shape libvirt really returns, and a new
+`TestParseInstanceMetadata_libvirtBareForm` pins it.
+
+### Run 4: guest hangs at GRUB's "Booting" line
+
+Create and start passed; Get polled `Provisioning` with no IP while the
+VM sat at 100 % CPU after GRUB printed "Booting `Debian GNU/Linux`" and
+before the kernel wrote anything to the serial console. The domain XML
+matches a working VM on the same host (q35, BIOS, host-passthrough,
+virtio disk, SATA cdrom, br0), so the difference is the disk content:
+the cached image was downloaded without a checksum and never verified.
+Diagnosis was handed to the user (sha512 against Debian's published
+sums, `qemu-img check`, and a `virt-install --import` of the same image
+outside the operator). Because the provider's own logs were invisible in
+the test output, this run also produced a side plan:
+[2026-09-10-0805-kvm-libvirt-tracing](2026-09-10-0805-kvm-libvirt-tracing.md),
+which traces every libvirt RPC at V(1) and routes it into `-v` output.
+
+### Run 5: the guest hang is Debian 13's BIOS boot path; UEFI fixes it
+
+The cached image's sha512 matched Debian's published sum, and
+`qemu-img info` showed a sound 3 GiB qcow2, which also confirms that
+the raw upload over a libvirt-created volume plus pool refresh yields a
+byte-identical file (the Step 3b note is answered). Bisected by hand on
+beelink with `virt-install --import` on a fresh overlay of the same
+image:
+
+| variant | seed | CPU | firmware | result |
+|---|---|---|---|---|
+| operator's domain | ours | host-passthrough | SeaBIOS | hangs after GRUB "Booting", 100 % CPU |
+| bare | none | host-passthrough | SeaBIOS | same hang |
+| bare | none | host-model | SeaBIOS | same hang |
+| bare | none | host-passthrough | **OVMF (`--boot uefi`)** | **boots to login** |
+
+So neither the seed ISO, the domain XML nor the CPU model was the
+problem: the image's legacy GRUB → kernel handoff does not work on this
+host, while its EFI stub path does. Not diagnosed further; it is
+Debian's chain, not ours, and every current cloud image boots UEFI.
+
+Change: `images.<key>.firmware` (`uefi` default, `bios` escape),
+threaded through `withDefaults` → `imageSource` → `domainParams`, and
+`buildDomainXML` emits `<os firmware="efi"><firmware><feature
+enabled="no" name="secure-boot"/></firmware>` so libvirt selects the
+OVMF binary and creates the NVRAM file; the `nvram` undefine flag Delete
+already passes removes it (seen on the host: `virsh undefine` without
+`--nvram` refuses such a domain). Direct-URL images default to UEFI
+too. Docs: OVMF is a new hypervisor prerequisite, config table row,
+sample comment, known-gaps entry, decision-log entry.
+
+Worth noting: the first image download went through with no checksum
+configured, and the cache reuses a base image by key, so switching
+`KVM_TEST_IMAGE_URL` requires deleting `base-test-image.qcow2` and its
+marker by hand first. That is the reviewer's Step 4 finding showing up
+in practice; still documented rather than fixed.
+
+Follow-up, same day: the cause is known upstream. [Debian bug
+#1111240](https://bugs.debian.org/1111240) (filed 2025-08-16 against
+the cloud image, reassigned to `grub2`, still open as of 2026-09-10;
+trixie ships grub2 2.12-9+deb13u2) reports exactly this with a domain
+XML almost identical to ours: BIOS, virtio disk, SATA cdrom seed, bridge
+NIC, `<console><target type='serial'/>`, no `<graphics>`/`<video>`.
+The cloud team reproduced it: trixie's grub.cfg has `terminal_output
+gfxterm serial`, and with a serial port present but no video adapter
+GRUB never hands over to the kernel. Their fix in the image
+(`terminal_output serial`) is not something an operator can apply;
+the reporter's workaround (console `target type='virtio'`) boots but
+takes the kernel's `console=ttyS0` output with it. UEFI sidesteps the
+gfxterm path and keeps the serial console, so the decision stands, but
+the docs now name the bug rather than blaming the host, and note that
+bookworm images are unaffected. `latest` on cloud.debian.org was the
+2026-08-31 build when this was hit, so every trixie point release to
+date carries it.
+
+### Run 6: pass
+
+With UEFI the full lifecycle passed in 23 s on a warm cache: Create 2 s
+(domain start 0.9 s), guest agent answering with `192.168.0.89` after
+20 s (ARP never did; the host had not talked to the guest), TCP 22
+reachable from the dev machine, ListByTag seeing it, Delete leaving only
+the base image and marker in the pool, second Delete a no-op. Trace
+excerpt worth keeping for the record:
+
+```
+09:44:28.603 libvirt virDomainDefineXML xmlBytes=1509 domain=proxy-hk5oavoqk45n3twq duration=13.51ms
+09:44:28.603 kvm domain defined uid=9bbceb41-… firmware=uefi
+09:44:29.542 libvirt virDomainCreate domain=proxy-hk5oavoqk45n3twq duration=938.705ms
+09:44:49.573 libvirt virDomainInterfaceAddresses domain=proxy-hk5oavoqk45n3twq source=DomainInterfaceAddressesSrcAgent interfaces=2 duration=1.742ms
+09:44:49.573 kvm KVM domain fetched state=Running ip=192.168.0.89 uid=9bbceb41-…
+```
+
+Worth noting: the sweep listed a second managed domain,
+`proxy-qxge3dbm2mnpc3ih`, shut off, left behind by an earlier failed
+run whose cleanup never ran. That is exactly the orphan GC exists for;
+on the host it needs `virsh undefine --nvram` plus its two volumes by
+hand. The `ListByTag` sweep costs one `virDomainGetMetadata` per
+domain on the host (21 here, ~0.4 ms each over the tunnel), which is
+fine at this scale but is the call to watch on a busy hypervisor.
+
+### Run 7: in-cluster, two defects the integration test could not see
+
+The e2e pass ran the operator inside the kind cluster
+(`egress-proxies-operator:kvm-dev`, built with `make docker-build`,
+loaded with `kind load docker-image`, deployed via the kustomize
+`config/manager` with the `kvm-home` provider pointing at beelink) and
+two Proxies with real cloud-configs: one plain squid, one with a debug
+login user. Both defects come from the difference between the test
+harness and the real thing, not from libvirt.
+
+**Read-only root filesystem.** The manager runs with
+`readOnlyRootFilesystem: true`, and `iso9660.NewWriter` stages the seed
+in a temp directory, so the first Create failed with `creating iso
+writer: read-only file system`. Fix: a 64 MiB `emptyDir` on `/tmp` in
+`config/manager/manager.yaml`. Side finding: the error is classified
+`ErrPermanent` by `writeSeed`, yet `hostPool.call` treated any
+non-libvirt error as a transport failure and dropped the SSH connection,
+so every retry redialled. `call` now leaves the connection alone for
+errors already carrying a provider sentinel (`isClassified`), with a
+test.
+
+**The guest agent never got installed.** Both VMs booted (confirmed on
+the console by hand) but sat in `Provisioning` for 25 minutes: the
+trace showed `virDomainInterfaceAddresses` from the agent source failing
+with `ErrAgentUnresponsive` on every poll and the ARP source empty. The
+integration test had passed with `CloudInit: "#cloud-config\n"`; the
+real Proxies have `packages: [squid]` and `runcmd:`. cloud-init merges
+vendor-data under user-data with its default mergers, which keep the
+user-data's value for any key both define and never append lists, so the
+vendor-data's `packages`/`runcmd` were dropped wholesale. Confirmed
+locally with the dev box's cloud-init 26.1 before changing anything:
+
+```sh
+python3 - <<'EOF'
+from cloudinit import mergers
+user = {"packages": ["squid"], "runcmd": ["systemctl restart squid"]}
+vendor = {"packages": ["qemu-guest-agent"], "runcmd": [["systemctl", "enable", "--now", "qemu-guest-agent"]]}
+print(mergers.construct(mergers.default_mergers()).merge(dict(user), dict(vendor)))
+EOF
+# {'packages': ['squid'], 'runcmd': ['systemctl restart squid']}
+```
+
+Fix: `withGuestAgent` in `seed.go` merges the bootstrap into the Proxy's
+cloud-config itself (append to `packages` and `runcmd`, skip if present,
+re-render with `sigs.k8s.io/yaml`), so vendor-data is no longer defaulted
+and `vendorData` is plain extra data. User-data that is not a cloud-config
+document (script, `#include`, MIME) still gets the bootstrap as
+vendor-data since there is nothing to collide with; a cloud-config that
+does not parse as a mapping fails the Proxy as `ErrPermanent`. The
+rendered document for the squid Proxy passed `cloud-init schema
+--config-file`. The logging test's fixture (`#cloud-config` + a bare
+sentinel line) is not a mapping and had to become `hostname: <sentinel>`.
+
+Rebuilt, reloaded, restarted, deleted and recreated both Proxies: both
+`Ready`/`HEALTHY True` in 2 min 1 s from `kubectl apply`, IP via the
+agent 110 s after `virDomainCreate` (the guest installs squid and the
+agent from the mirrors first), and `curl -x http://<ip>:3128
+https://www.gstatic.com/generate_204` from the dev box returns 204
+through both.
+
+Worth noting: the `#cloud-config` round-trip drops comments and reorders
+keys alphabetically; semantics are preserved (numbers, booleans and
+block scalars survive, checked in tests) but a user diffing the seed
+against their CR will see a different document. Vendor-data supplied via
+`vendorData` is subject to the same cloud-init merge rule and is now
+documented as such. The kind pod also restarted twice during the session
+from "Pod sandbox changed" (the node briefly lost the API server), which
+is unrelated to the operator. Still uncommitted on purpose: the
+`kustomization.yaml` image override (`egress-proxies-operator:kvm-dev`)
+and the `beelink` host entries in `config/manager/providers_config.yaml`
+and `config/samples/providers-config.yaml`, which are this machine's dev
+setup rather than the repo's defaults.
+
+### Run 8: review fixes
+
+A `/code-review high` pass over the branch found five defects, fixed in
+[plan 2026-09-10-2222](../plans/2026-09-10-2222-kvm-review-fixes.md) with
+its own execution log. Two of them land on Run 7's conclusions above and
+supersede them:
+
+- The guest-agent **merge described in Run 7 is gone**. It could not be made
+  safe for user-data that is not a plain cloud-config, and its YAML
+  round-trip re-typed unquoted scalars. The bootstrap now ships as a
+  vendor-data shell script, which cloud-init never merges, and the Proxy's
+  cloud-init reaches the seed byte for byte.
+- The read-only-filesystem fix from Run 7 still stands, but the eager SSH
+  key load it sat next to does not: a missing `kvm-ssh` Secret aborted the
+  whole provider set and crash-looped the manager. The material is read on
+  first use now.
+
+Re-validated the same way: integration test against beelink, both Proxies
+recreated in kind, 204 through squid.
+
+### MR opened
+
+[PR #5](https://gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/pulls/5),
+`feat/kvm-provider` → `main`, 19 commits. `tea` is not installed on the
+dev box and the HTTPS remote has no credential helper, so the push used a
+one-off helper reading a Gitea access token from `~/.config/gitea-token`,
+and the MR was created with the API instead of `tea pr create`:
+
+```sh
+git -c credential.helper='!f() { echo username=kacerr; echo "password=$(tr -d "[:space:]" < ~/.config/gitea-token)"; }; f' \
+  push -u origin feat/kvm-provider
+curl -s -H "Authorization: token $(tr -d '[:space:]' < ~/.config/gitea-token)" \
+  -H 'Content-Type: application/json' -d @pr.json \
+  https://gitea.home.hrajfrisbee.cz/api/v1/repos/kacerr/egress-proxies-operator/pulls
+# pr.json: {"title": ..., "head": "feat/kvm-provider", "base": "main", "body": ...}
+```
+
+The push printed a libsecret "store failed" warning from the system
+credential store; harmless, the token was not persisted anywhere but the
+file.

docs/plans-executions/2026-09-10-0805-kvm-libvirt-tracing.md

@@ -0,0 +1,109 @@
+# Execution: Trace every libvirt call in the KVM provider
+
+Plan: [2026-09-10-0805-kvm-libvirt-tracing.md](../plans/2026-09-10-0805-kvm-libvirt-tracing.md)
+
+- [x] Step 0 — Save plan
+- [x] Step 1 — `errors.go`: shared error fields
+- [x] Step 2 — `trace.go`: the `tracingAPI` decorator
+- [x] Step 3 — `conn.go`: pool logging and wrapping
+- [x] Step 4 — Call sites
+- [x] Step 5 — Integration test output
+- [x] Step 6 — Unit tests
+- [x] Step 7 — Docs, execution log, CHANGELOG
+
+## Steps 1–6 — Tracer, pool logging, tests, integration wiring
+
+Done as one commit on `feat/kvm-provider`; the plan's assumption that
+this belongs on the KVM branch rather than its own feature branch was
+accepted at plan approval.
+
+The code follows the plan closely. Things that came out differently
+or are worth knowing:
+
+- **Logger names join with `/` in funcr, `.` in zap.** The trace lines
+  are `kvm/libvirt` in the unit-test capture and in `testr` output, and
+  `kvm.libvirt` under the operator's zap logger. The docs use the zap
+  spelling; the unit test asserts the funcr one. First run of the tier
+  test failed on exactly this.
+- **Cancel is not reported as a transport error.** The original `call`
+  dropped the connection twice on cancellation (once from the abort
+  closure, once from the "not a libvirt error" branch, harmlessly, since
+  drop is idempotent). With a log line on each drop that would have
+  printed both `context cancelled` and `transport error` for one event,
+  so the transport branch now skips `ctx.Err()`. Covered by
+  `TestHostPool_call_logsDropReason`.
+- **`ConnectListAllDomains` in the fake includes every defined domain**,
+  so the trace test's fixture (one running managed domain plus one
+  stopped domain for `DomainCreate` to start) lists two; the V(2)
+  assertion checks for the `names` key rather than an exact list.
+- **`libvirtErrorFields` also feeds `logAPIError`**, which therefore
+  gains `libvirtCodeName` (e.g. `ErrNoDomain`) next to the numeric code.
+- The seam-coverage guard (`reflect` count of `libvirtAPI` methods vs
+  the test table) is the only thing standing between a future 18th RPC
+  and a silently untraced call; keep it.
+
+Verification run before committing:
+
+```bash
+go build ./... && go vet ./... && go vet -tags=integration ./internal/provider/kvm/
+go test -short ./...
+go test -race -count=1 -cover ./internal/provider/kvm/   # 90.2 %, up from 88.2
+go test -tags=integration -count=1 -run TestKVM ./internal/provider/kvm/   # self-skips without env
+```
+
+Worth noting: the live run (`make test-integration-kvm` against beelink)
+had not happened when this was written; it is what Step 7 of the KVM
+provider plan is waiting on, and its output is the acceptance test for
+this feature. Expected shape is in the plan's Verification section.
+
+## Revision after the first live run — less noise, libvirt names
+
+The first live run on beelink showed the trace working but hard to read:
+`testr` printed `"ts"`, `"level"`, `"msg"` and the three per-run
+constants on every line, the error text appeared twice (`error` and
+`libvirtMessage`), `host` appeared twice on image-cache lines (the
+logger already carried it), and `method=DomainLookupByName` was
+go-libvirt's name rather than something to look up in libvirt's docs.
+The user asked for "less verbose but more informative". Changes:
+
+- The tracer's headline field is now `rpc=virDomainLookupByName`: the
+  public libvirt API function, which go-libvirt's method names are
+  exactly minus the `vir` prefix (they come from the same
+  `remote_protocol.x`). Not gRPC, for the record: libvirt's own
+  XDR-based RPC over the forwarded unix socket.
+- Errors are one `error` field plus `libvirtError=ErrNoDomain` and
+  `libvirtCode=42`; `libvirtMessage` is gone from both the tracer and
+  `logAPIError`, since it is the error text.
+- `image.go` no longer adds `host` to lines whose logger has it.
+- The integration test replaces `testr` with a small `compactSink`
+  (`logr.LogSink` plus `GetCallStackHelper`, so `t.Log` still
+  attributes lines to `trace.go`): `HH:MM:SS.mmm libvirt
+  virDomainCreate domain=… duration=… error=… libvirtError=…`. The
+  `rpc` value becomes the headline, `provider`/`host`/`name` are
+  dropped (the run's first `t.Log` line states them), and values with
+  spaces are quoted. Production zap output is unchanged apart from the
+  field renames; structured logs are meant to repeat context.
+
+Previewed by driving the sink through the fake provider with an
+injected `DomainCreate` failure (a throwaway integration-tagged test,
+not committed):
+
+```
+trace.go:55: 09:04:33.165 libvirt virDomainLookupByName domain=proxy-abc123def456ghij duration=4µs error="Domain not found: …" libvirtError=ErrNoDomain libvirtCode=42
+trace.go:55: 09:04:33.165 libvirt virStorageVolUpload pool=default volume=proxy-abc123def456ghij-seed.iso offset=0 length=0 duration=71µs
+kvm.go:262:  09:04:33.165 kvm seed volume uploaded volume=proxy-abc123def456ghij-seed.iso bytes=45056
+trace.go:55: 09:04:33.165 libvirt virDomainCreate domain=proxy-abc123def456ghij duration=0s error="internal error: process exited…" libvirtError=ErrResourceBusy libvirtCode=87
+```
+
+Worth noting: `length=0` on `virStorageVolUpload` is what the provider
+passes (libvirt reads to EOF); the following `seed volume uploaded`
+line has the byte count.
+
+## Step 7 — Live run confirmed; CHANGELOG
+
+The compact trace was accepted on the first passing live run
+(2026-09-10, beelink): one line per RPC with the libvirt function name,
+the provider's own lines between them, `Provisioning` polls readable at
+a glance (`SrcArp interfaces=0`, `SrcAgent … ErrAgentUnresponsive`
+until the agent came up at +20 s), and a full `ListByTag` sweep over 21
+domains in 15 ms. CHANGELOG entry added under the KVM validation entry.

docs/plans-executions/2026-09-10-2222-kvm-review-fixes.md

@@ -0,0 +1,229 @@
+# Execution: fix the five code-review findings on `feat/kvm-provider`
+Plan: [docs/plans/2026-09-10-2222-kvm-review-fixes.md](../plans/2026-09-10-2222-kvm-review-fixes.md)
+
+- [x] Step 0 — Save plan into the repo
+- [x] Step 1 — Unwedge deletion (finding 1)
+- [x] Step 2 — Validate names that become identifiers (finding 2)
+- [x] Step 3 — Read the SSH material lazily (finding 3)
+- [x] Step 4 — Guest agent via vendor-data script (findings 4 and 5)
+- [x] Step 5 — Validate, record, push
+
+## Step 0 — plan committed
+
+Copied out of `~/.claude/plans/` and committed alone before touching code, as
+the repo's plan rules require.
+
+## Step 1 — Unwedge deletion
+
+Three changes, in the order the bug unfolds.
+
+`reconcileDelete` calls `Get` first and only drops the finalizer when it
+answers not-found, so any permanent error there retried forever. It now
+switches on the class: a permanent `Get` still calls `Delete`, which is
+idempotent, and releases the object when that succeeds. Polling a `Get`
+that cannot converge was the wedge; `Delete` is the only call that can
+still make progress.
+
+`crawl.example.com/skip-cleanup: "true"` abandons the instance and removes
+the finalizer. It is checked **before** the provider lookup, which also
+frees a Proxy whose provider was deleted from the config — a second wedge
+sitting three lines above the reported one, with the same shape. No
+`EventRecorder` exists on the reconciler and none was added, so the
+abandonment is an Info log; `docs/architecture.md` already records that
+decision for the whole controller.
+
+In the KVM provider, `Delete` for a providerID naming an unconfigured host
+now logs and returns success. The precedent is two functions further down:
+`removeVolumes` treats a missing pool the same way, with a comment saying
+outright that refusing "would pin the Proxy's finalizer".
+
+**`Get` deliberately still fails permanently for that case.** Making it
+answer not-found would have been a one-line fix for the wedge, but the live
+reconcile path reads not-found as "the VM is gone" and rebuilds it
+elsewhere. A typo in `hosts` would then quietly duplicate every Proxy on
+that host, with the originals still running where GC cannot see them, since
+`ListByTag` only sweeps configured hosts. The asymmetry is now pinned by a
+test that asserts both halves at once.
+
+## Step 2 — Validate names that become identifiers
+
+One regexp, `^[A-Za-z0-9][A-Za-z0-9_.-]*$`, applied to `hosts[].name` and to
+the `images` map keys. Dots stay legal because a host name like
+`nas1.home.lan` is ordinary and harmless; the character that actually
+breaks things is `/`.
+
+The review only reported the host name. The image key has the same defect
+and is arguably worse: it is not merely embedded in an ID but pasted into a
+file name, `base-<key>.<format>`, so `../etc/x` would be a path traversal
+into the storage pool rather than a parse failure. Both are validated in the
+same pass. Machine-type keys are left alone deliberately — they are only
+ever compared against `placement.machineType`, never embedded anywhere.
+
+Worth noting: this is validation of the operator's own config file, which
+only a cluster admin can write, so the traversal was never a privilege
+boundary. It is still cheaper to reject at load than to explain a stuck
+Proxy later. Both new table cases assert the message text, so the wording
+that names the consequence is now pinned by tests.
+
+## Step 3 — Read the SSH material lazily
+
+`kvm.New` no longer loads the key; `lazyAuth` does, on the first connection,
+caching the result once it works. `registry.Build` is all-or-nothing by
+design, so the old constructor error did not merely fail the KVM provider,
+it exited the manager before any controller started.
+
+The plan said "lazy dialer", and the first attempt was exactly that — one
+closure wrapping both the loading and the dial. It could not be tested: the
+fixture's SSH server is real, but the socket behind it is an echo server, so
+every successful dial dies in the libvirt handshake and the assertion could
+not tell "the key worked" from "the key did not". Splitting the seam in two,
+`lazyAuth` for the material and `lazyDialer` for the wiring, made both
+testable: the healing path against `lazyAuth`, and a separate test that the
+dialer really authenticates, asserted by the error being past SSH and by the
+server having seen the forward request.
+
+Error classes carry the intent. A missing file stays unclassified, so
+`provider.Class` defaults it to transient and a Proxy heals on its own when
+the Secret appears — the common case, since the Secret is usually created
+after the manager. A key that does not parse wraps `ErrPermanent`, because
+retrying cannot fix it. `newSSHAuth` distinguishes the two with
+`errors.Is(err, fs.ErrNotExist)`.
+
+Worth noting: the startup check is kept, just non-fatally, logged with the
+`WARNING:` prefix the repo already uses where logr has no warn level. That
+preserves the diagnostic the eager version was written for. The caching test
+deliberately deletes the key file after a successful load and asserts the
+cached value is reused, which pins the rotation behaviour the docs promise:
+a rotated Secret needs a manager restart. `TestNew_badKeyPathFailsFast` was
+inverted rather than deleted, so the old contract stays visible in the diff
+next to the new one.
+
+## Step 4 — Guest agent via vendor-data script
+
+The review filed two findings against `withGuestAgent` — detection too
+narrow, and YAML re-typing on the round-trip. Reading cloud-init 26.1's
+sources while planning turned both into one finding: the operator should
+not be editing the user's document at all.
+
+Vendor-data gets its own handler chain (`stages.py:_default_vendordata_handlers`),
+with separate script and cloud-config paths. A vendor-data **script** is
+therefore written to the vendor script directory and run by
+`cc_scripts_vendor`, never touching the config merger that drops colliding
+keys. On the final-stage module list it lands after
+`package_update_upgrade_install` and before the user's `runcmd`, so the
+agent now comes up *earlier* than the old `runcmd` append did.
+
+That also closed the door the previous approach had left ajar. The merge
+cannot be rescued from inside either document: `merge_how` in user-data
+governs only the first source, and `merge_how` in vendor-data is popped by
+`dict_extract_mergers` and discarded before the document is written. There
+was no fix that kept the merge.
+
+`withGuestAgent`, `isCloudConfig` and `appendUnique` are gone, along with
+seed.go's `sigs.k8s.io/yaml` dependency. `installGuestAgent` (default true)
+turns the script off. When `vendorData` is also configured the two ship as
+a MIME multipart, with the user's document declared `text/plain` — a type
+cloud-init re-sniffs from the content's own header line, so this code never
+classifies what the user wrote.
+
+Before deleting the old path, its damage was captured rather than taken on
+trust. Round-tripping a plausible cloud-config through it:
+
+```sh
+# temporary test in the package, deleted afterwards
+go test -run TestZZProbeRetyping -v ./internal/provider/kvm/
+# in:  version: 1.10
+# out: version: 1.1
+```
+
+`1.10` arriving as `1.1` is worse than the reviewer's `passwd` example,
+since nothing about it looks wrong in the seed. Comments were dropped and
+keys reordered on the same pass.
+
+The generated vendor-data was then checked against the cloud-init actually
+installed on this machine, rather than against the docs:
+
+```sh
+python3 -c 'from cloudinit import user_data, handlers; ...'
+# vendor-script:    multipart=False  sniffed=text/x-shellscript
+# vendor-multipart: multipart=True   part 1 text/plain -> text/cloud-config
+#                                    part 2 text/x-shellscript
+```
+
+and the script itself through `sh -n`.
+
+Worth noting: the script has to choose a package manager where cloud-init's
+`packages:` key was distro-agnostic. It covers apt, dnf, yum, zypper and
+apk, and both systemd and OpenRC for the enable step, but an image outside
+that set now needs `installGuestAgent: false` and the agent baked in. The
+seed's user-data is byte-identical to the Proxy's `cloudInit` from here on,
+which is what the new `TestBuildSeedISO_userDataIsNeverRewritten` pins
+across seven formats. One consequence worth remembering: a user-data that
+sets `vendor_data: {enabled: false}` disables the agent, and cloud-init
+documents that as intended behaviour.
+
+## Step 5 — Validation
+
+Unit suite, `go vet` and `gofmt` clean across the repo. Then the two real
+runs.
+
+**Integration against beelink**, unchanged environment from the KVM plan's
+log, passed in 22 s on a warm cache, with
+`virDomainInterfaceAddresses source=DomainInterfaceAddressesSrcAgent
+interfaces=2` — the agent installed by the new vendor script answering, on
+a stock Debian 13 image.
+
+**In-cluster**, both Proxies deleted and recreated against the rebuilt
+image: Ready with an address 2 min 3 s after `kubectl apply`, 204 through
+squid from the dev box for both. Inside the debug VM:
+
+```sh
+ssh novakj@192.168.0.94 'systemctl is-active qemu-guest-agent; cloud-init status; \
+  sudo head -4 /var/lib/cloud/instance/user-data.txt; sudo ls /var/lib/cloud/instance/scripts/vendor/'
+# active
+# status: done
+# #cloud-config
+# # Login for debugging: user "novakj", password "kvm-dev", passwordless sudo.
+# ...
+# part-001
+```
+
+Two things worth having seen with your own eyes there: the user's **comment
+lines survived** into the guest, which the old merge stripped, and the
+script really did land in the vendor directory rather than being merged
+into the user's config.
+
+**Negative check for the Secret**, done by pointing the deployment's volume
+at a name that does not exist rather than deleting the real Secret:
+
+```sh
+kubectl -n egress-proxies-operator-system patch deploy egress-proxies-operator-controller-manager \
+  --type=json -p '[{"op":"replace","path":"/spec/template/spec/volumes/1/secret/secretName","value":"kvm-ssh-absent"}]'
+```
+
+The manager came up and stayed up, 0 restarts, logging
+`WARNING: kvm ssh material is not usable ... open /etc/proxy-operator/kvm/id_ed25519:
+no such file or directory`. The Kubernetes Proxies kept reconciling; the
+KVM ones failed per reconcile and retried. Before this branch the same
+config exited the process before any controller started. Patched back
+afterwards, everything Ready.
+
+Worth noting: the KVM Proxies kept reporting `Ready` during that window
+rather than degrading visibly. That is existing behaviour, not a
+regression — a transient provider error rides the workqueue and does not
+clear a healthy status — but it does mean the only signal of a missing
+Secret is the log and the reconcile errors. Also, the ListByTag sweep on
+beelink still reports `managed=2` where one domain is an orphan from an
+older failed run; unrelated to this work, and the same leftover noted in
+the KVM plan's Run 6.
+
+Worth noting: the review filed this as a KVM finding, but the fix is mostly
+in the controller, because KVM is the only provider that resolves a
+providerID segment against operator config at all. GCP and Kubernetes hand
+the lookup to the backend, which answers 404 for a retired zone or a deleted
+namespace, so they reach not-found and release on their own. Anything else
+that classifies permanently on the delete path — revoked RBAC on the
+Kubernetes provider is the realistic one — was equally stuck before this
+step and is what the annotation is really for. The KVM table case
+`"host not configured"` moved out of `TestDelete_errors` into its own named
+test, since it is no longer an error.

docs/plans/2026-08-24-1025-otel-tracing.md

@@ -0,0 +1,107 @@
+# Plan: OpenTelemetry tracing integrated with the existing logr/zap logging
+**Created:** 2026-08-24 10:25
+
+## Context
+
+The operator has structured logging (controller-runtime zap → logr, `logf.FromContext(ctx)` everywhere) and Prometheus metrics, but no tracing. A single reconcile fans out into k8s API calls, provider calls (GCP VMs / squid Pods), and status patches; the discovery API serves lease requests; GC and health engines run on tickers. Today correlating one operation across those hops means grepping for `reconcileID` or `providerID`. Goal: proper OTel traces — a new trace per unit of work (reconcile, HTTP request, GC sweep, optionally health probe), child spans for k8s/provider/HTTP calls — **and every log line inside a traced operation enriched with the trace context**, without disturbing the existing logr/zap system.
+
+User decisions (confirmed):
+- **Enablement:** auto from standard `OTEL_*` env vars — no collector configured ⇒ tracing fully off, zero new flags for the common case.
+- **Health probes:** not traced by default; new `--trace-health-probes` flag enables one root span per probe.
+- **Backend:** none exists yet — verification uses the console exporter and a throwaway Jaeger all-in-one in kind; manifests ship commented-out OTLP env examples.
+
+## Key design facts (verified, non-obvious)
+
+- **logr can't read ctx:** `logr.LogSink` never sees `context.Context`, so trace IDs cannot be added inside the zap sink. They must be attached as `WithValues` at span-creation points via `logf.IntoContext`. zap does **not** dedupe repeated keys, so enrichment must happen exactly once per ctx chain (see `tracing.Start` below).
+- Log keys: **`traceID` / `spanID`** (lowerCamel matches `reconcileID`/`providerID` house style; note in docs that Grafana/Loki derived-field regexes must match `traceID`, not the `trace_id` default).
+- **GCP calls trace themselves:** `google.golang.org/api/transport/http` already wraps its transport in `otelhttp.NewTransport` — once a global TracerProvider is set, every Compute call emits an HTTP client span. Do not add HTTP-level spans in the gcp provider; the `provider.*` decorator span becomes their parent.
+- **kube-apiserver ignores incoming `traceparent`** by design; our k8s-API client spans are leaves. Don't promise cross-process traces into the apiserver.
+- The Go SDK does **not** implement `OTEL_SDK_DISABLED` — handle it ourselves.
+- `contrib/exporters/autoexport` drags in metric/log/prometheus exporters (binary + deps on a 128Mi pod) — hand-roll trace-exporter selection (~40 lines) instead.
+- Span events are deprecated (OTel spec, Mar 2026): use `span.SetStatus` + `error.type`-style attributes, not `RecordError`/`AddEvent`.
+- `rest.Config.Wrap` puts our transport innermost (after auth), so spans see the final request — correct; but informer list/watch + leader election run outside any span ⇒ the transport must **filter out requests with no parent span** or every watch becomes a long-lived root span.
+- Manager runnables receive no logger in ctx (only HTTP servers do) — `logf.FromContext` falls back to the global logger there, which is fine; the discovery server must keep seeding from `s.log`.
+
+## Steps
+
+### Step 1 — Dependencies
+
+`go get` (aligning the existing indirect skew: otel core v1.44 / otlptrace v1.40):
+`go.opentelemetry.io/otel@v1.45.0`, `otel/sdk@v1.45.0`, `otel/trace@v1.45.0`,
+`otel/exporters/otlp/otlptrace/otlptracegrpc@v1.45.0`, `.../otlptracehttp@v1.45.0`,
+`otel/exporters/stdout/stdouttrace@v1.45.0`,
+`go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp@v0.70.0`, plus the
+`semconv` version matching the SDK's `resource.Default()` (treat `ErrSchemaURLConflict` from `resource.New` as non-fatal if versions drift).
+`go mod tidy`; full build + `make test` to confirm `google.golang.org/api v0.292.0` / k8s v0.36 tolerate the bump (MVS picks the higher otelhttp).
+
+### Step 2 — New package `internal/tracing`
+
+- **`tracing.go` — `Setup(ctx, log logr.Logger, service, version string) (shutdown func(context.Context) error, err error)`**
+  - Disabled (returns no-op shutdown, installs nothing) when `OTEL_SDK_DISABLED=true`, or when neither `OTEL_TRACES_EXPORTER` nor `OTEL_EXPORTER_OTLP_ENDPOINT`/`OTEL_EXPORTER_OTLP_TRACES_ENDPOINT` is set, or `OTEL_TRACES_EXPORTER=none`. One startup Info line either way stating the effective state/exporter.
+  - Exporter selection (hand-rolled, no autoexport): `OTEL_TRACES_EXPORTER` ∈ `otlp` (default) | `console`; for otlp, `OTEL_EXPORTER_OTLP_(TRACES_)PROTOCOL` ∈ `http/protobuf` (default) | `grpc` → `otlptracehttp` / `otlptracegrpc` (endpoint/TLS/headers via their native env handling).
+  - `sdktrace.NewTracerProvider` with batch processor (`WithMaxQueueSize(512)` — bounded on the 128Mi pod; sampler stays the SDK default so `OTEL_TRACES_SAMPLER(_ARG)` works), resource = `resource.New(WithAttributes(service.name, service.version=commit), WithFromEnv())` with env last so it wins.
+  - Globals: `otel.SetTracerProvider`, `otel.SetTextMapPropagator(TraceContext+Baggage)`, `otel.SetLogger(log.WithName("otel"))`, `otel.SetErrorHandler` → logr at `V(1)` (an unreachable collector errors every few seconds; Error level would spam).
+- **`logger.go` — the one logger-enrichment mechanism** (used by everything; prevents duplicate `traceID` keys):
+  - private ctx key holding the *base* (pre-enrichment) logr.Logger.
+  - `Start(ctx, spanName, opts...) (context.Context, trace.Span)`: starts a span from the global tracer; if the resulting span context is valid, capture base = stored base or `logf.FromContext(ctx)` on first call, then `logf.IntoContext(ctx, base.WithValues("traceID", ..., "spanID", ...))`. Nested `Start` re-derives from base — never stacks. Documented trade-off: `WithValues` pushed via `logf.IntoContext` *between* two `Start` calls is dropped (nothing first-party does that; controller-runtime's `reconcileID` logger is the base and survives).
+  - `ContextWithLogger(ctx, base)` seeds the base explicitly (discovery middleware).
+- **`reconciler.go` — `NewReconciler(kind string, inner reconcile.Reconciler, opts...) reconcile.Reconciler`**: root span `Reconcile <kind>` (SpanKind Internal) via `Start`; attrs `k8s.namespace.name`, `k8s.object.name`, `reconcile.id` (`controller.ReconcileIDFromContext`); on return records `reconcile.requeue_after`, sets Error status from err. `WithTracerProvider` option for tests.
+- **`transport.go` — `RestConfigWrapper() transport.WrapperFunc`**: `otelhttp.NewTransport` with `WithFilter` requiring `trace.SpanContextFromContext(r.Context()).IsValid()` — k8s API spans only under an existing trace (excludes informers, leader election, metrics authn).
+- **`http.go` — `HTTPMiddleware(operation string, base logr.Logger) func(http.Handler) http.Handler`**: `otelhttp.NewHandler` (filter `/healthz`; otelhttp renames the span from `r.Pattern` after routing — no custom naming needed) + inner layer calling `ContextWithLogger`-then-enrich so handler logs carry `traceID`. Accepts incoming `traceparent` (clients continue their traces).
+
+Tests (all with `sdktrace` + `tracetest.NewSpanRecorder` via the `WithTracerProvider` options, parallel; `Setup` env tests use `t.Setenv`, not parallel):
+- `Start`: nested spans → child span recorded; **funcr-captured log line contains `traceID` exactly once** (pattern: `internal/provider/gcp/gcp_test.go:277`); disabled tracer → no `traceID` in logs.
+- `Setup`: table over env combinations (unset→disabled, `none`→disabled, endpoint set→otlp, `console`, `OTEL_SDK_DISABLED`).
+- Reconciler decorator: fake inner returns result/err → span name/attrs/status.
+- Transport filter: request without parent span produces no span.
+- Middleware: `httptest` request → server span named from route pattern; `/healthz` unspanned; handler logger carries `traceID`.
+
+### Step 3 — `provider.WithTracing` decorator
+
+`internal/provider/tracing.go`, mirroring `metrics.go`: `WithTracing(name string, p Provider, opts...) Provider` — one Client span per call (`provider.create|get|delete|list`), attrs `provider.name`, `provider.id` (where present), result class attr from `resultLabel(err)`; status Error only for quota/permanent/transient — `ErrNotFound` stays Ok (expected during deletion polling). Returns the inner error **unmodified**. Uses `tracing.Start` so provider-internal logs (gcp `p.logger(ctx)`) inherit `traceID`. Tests in `internal/provider/tracing_test.go` reusing `staticProvider` from `metrics_test.go:19`.
+
+Wiring in `cmd/main.go:174-177` — tracing outermost: `provider.WithTracing(name, provider.WithMetrics(name, p, m))`.
+
+### Step 4 — `cmd/main.go` wiring
+
+- `tracing.Setup(...)` immediately after `ctrl.SetLogger` (cmd/main.go:148); on error: log + `os.Exit(1)`.
+- Explicit `shutdown(context.WithTimeout(context.Background(), 10*time.Second))` (fresh ctx — signal ctx is already cancelled) after `mgr.Start` returns, on **both** the error path before `os.Exit(1)` and the clean path. Earlier `os.Exit` sites have nothing to flush.
+- `cfg := ctrl.GetConfigOrDie(); cfg.Wrap(tracing.RestConfigWrapper())` before `ctrl.NewManager` (cmd/main.go:239).
+- kubernetes provider: add `kubernetes.NewWithTransportWrapper(ctx, cfg, wrap transport.WrapperFunc)` beside `New` (internal/provider/kubernetes/kubernetes.go:42) and register a closure in main's constructor map (same pattern as gcp at cmd/main.go:166) passing `tracing.RestConfigWrapper()` — keeps `internal/tracing` out of provider packages and `newWithClient` tests untouched.
+- New flag `--trace-health-probes` (default false) → `engine.TraceProbes`.
+
+### Step 5 — Reconciler spans
+
+- `SetupWithManager` (proxy_controller.go:412): `b.Complete(tracing.NewReconciler("Proxy", r))`.
+- Sub-spans via `tracing.Start`: `reconcile.managed` (:116), `reconcile.replaceInstance` (:226), `reconcile.delete` (:254), and `status.patch` opened **inside the deferred flush closure** (:98-104, runs within the root span; its error already folds into `err`). `reconcileExternal` stays unspanned — no I/O, pure noise.
+- Useful attrs where cheap: phase transitions, `providerID`.
+
+### Step 6 — Discovery server
+
+- `handler()` (internal/discovery/server.go:151-156): chain becomes recover → `tracing.HTTPMiddleware("discovery", s.log)` → log → maxBytes → auth (otelhttp must stay outside `maxBytesMiddleware`).
+- Handlers and `logMiddleware`/`recoverMiddleware` switch `s.log` → `logf.FromContext(r.Context())` (handlers.go:85, :141, :234; server.go:163, :191) so request logs carry `traceID`. `s.log` remains for startup lines.
+- k8s `List` calls in handlers already use `r.Context()` → child spans appear via the wrapped rest transport.
+
+### Step 7 — GC + health
+
+- `gc.Sweeper.sweep` (internal/gc/gc.go:83): wrap in root span `gc.sweep` via `tracing.Start` (before the `.WithName("orphan-gc")` derivation so it inherits), attrs: providers swept, orphans deleted. Provider/k8s child spans come free from Steps 3/4.
+- `health.Engine`: new field `TraceProbes bool`. In the worker loop (engine.go:158) when enabled: root span `health.probe` (SpanKind Client) around `probeFn`, attrs proxy key/ok/latency/error class, ended before `record` (which stays ctx-free). No transport wrap and no propagation — never inject `traceparent` toward external targets through the proxies. Probe→reconcile span links are **out of scope**: `GenericEvent` (engine.go:330) carries no ctx and the workqueue coalesces events; documented in architecture Decisions.
+- Lease store sweep: not traced (in-memory only).
+
+### Step 8 — GCP wire-log enrichment
+
+`wireFilterHandler.Handle` (internal/provider/gcp/wirelog.go:46) receives the real request ctx from the SDK's slog calls: append `traceID`/`spanID` attrs when `trace.SpanContextFromContext(ctx)` is valid — V(5) wire logs become correlatable with the `provider.*` span. Add `wirelog_test.go` case.
+
+### Step 9 — Manifests + docs
+
+- `config/manager/manager.yaml` env (after `DISCOVERY_TOKEN`): `POD_NAME`/`POD_NAMESPACE` via downward API **first**, then `OTEL_SERVICE_NAME`, `OTEL_RESOURCE_ATTRIBUTES: k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE)` ($(VAR) expansion only sees earlier vars); commented-out `OTEL_EXPORTER_OTLP_ENDPOINT` + `OTEL_TRACES_SAMPLER` examples with a "tracing is off until an endpoint is set" comment. Note `--trace-health-probes` beside the args list.
+- `docs/architecture.md`: new "### 10. Tracing" section after Metrics (:281) — span topology, enablement, `traceID` log-key choice; Decisions entries (:303): env-gated enablement, probes off by default, no probe→reconcile links (why), `traceID` naming vs Grafana defaults, no traceparent into apiserver.
+- README ops note; CHANGELOG entry (dated via `date`) once the user confirms it works.
+- Run `make lint` (CI has no lint step; `lll`/`revive` will hit new files).
+
+## Verification
+
+1. `make test` (unit, includes all new `tracetest` assertions) and `make lint`.
+2. Console smoke: `OTEL_TRACES_EXPORTER=console go run ./cmd --providers-config hack/providers-dev.yaml ...` against kind — create a Proxy, confirm (a) `Reconcile Proxy` span JSON on stdout with nested `provider.create` + k8s PATCH spans, (b) the reconcile log lines carry the same `traceID` as the span, (c) no spans from informer watches or leader election.
+3. End-to-end in kind: deploy Jaeger all-in-one (`jaegertracing/all-in-one`, OTLP 4318), set `OTEL_EXPORTER_OTLP_ENDPOINT=http://jaeger:4318` on the manager Deployment; exercise a reconcile + a `POST /v1/leases` (with and without a client `traceparent`) + wait one GC interval; in the Jaeger UI: reconcile trace shows provider+k8s children; lease trace shows route-named server span with k8s child; grep manager logs for a `traceID` and resolve it in Jaeger.
+4. Negative: run with no `OTEL_*` env — startup line says tracing disabled, no export-error spam, logs unchanged (no `traceID` keys).

docs/plans/2026-08-24-1224-tracing-e2e.md

@@ -0,0 +1,150 @@
+# Plan: e2e test — OTel tracing against real Tempo
+**Created:** 2026-08-24 12:24
+
+## Context
+
+The tracing feature (MR #4, branch `feat/otel-tracing`) is covered by unit
+tests with an in-memory span recorder, but nothing proves the full pipeline:
+operator in a real cluster → OTLP export → Tempo ingest → queryable traces
+with the documented span topology. The homelab Tempo lives at
+`http://192.168.0.30:3200` (query API — verified live from this host:
+`/api/echo`, TraceQL `GET /api/search?q=…`, `GET /api/traces/<id>`), with
+OTLP ingest on `:4318` (HTTP, verified 200) and `:4317` (gRPC, open). User
+decisions: **Go Ginkgo e2e test** (not a shell script), **structural
+assertions** (span tree, not just trace-exists), flow per the user's sketch:
+deploy operator in kind with tracing on → create kubernetes-provider proxies
+→ delete them → shut down — with traces tagged for easy discovery per test
+run. This work continues on `feat/otel-tracing`; MR #4 stays the vehicle.
+
+## Design decisions (from review, with evidence)
+
+- **Proxy CRs go in the `default` namespace, not the operator namespace.**
+  The squid pods the kubernetes provider creates carry no securityContext
+  (internal/provider/kubernetes/pod.go:33-49) and are created in the CR's
+  namespace; the operator ns is labeled `pod-security enforce=restricted`
+  (test/e2e/e2e_test.go:61-62) and would reject them. Pod RBAC is
+  cluster-scoped (config/rbac/role.yaml:10), so `default` works. All
+  kubectl calls use explicit `-n`.
+- **Anchor assertions on `provider.create`, not the root-span search.** A
+  `name="Reconcile Proxy"` hit may be the finalizer-add or a drift
+  reconcile (no provider call inside). TraceQL matches span names anywhere
+  in a trace, so search `{resource.test.run.id="<runID>" && name="provider.create"}`,
+  fetch *that* traceID, then assert companion span names.
+- **Run identification with zero code changes:** OTel resource attribute
+  `test.run.id=<runID>` via `OTEL_RESOURCE_ATTRIBUTES` (env wins —
+  `resource.WithFromEnv()` merges last, internal/tracing/tracing.go). Tempo
+  vParquet searches arbitrary resource attrs without config; fallback query
+  documented: `{resource.service.name="egress-proxies-operator" && name="provider.create"}`
+  + start/end window (Unix **seconds**).
+- **OTLP preflight from inside the cluster:** host-reachability of
+  192.168.0.30 doesn't prove pod-reachability from kind on macOS, and
+  export failures log only at V(1) (invisible) — without a preflight, a
+  broken path is a 2-minute opaque timeout. Reuse the suite's curl-pod
+  pattern (e2e_test.go:218-248, incl. the restricted-PSS overrides JSON)
+  to POST to `<OTLP_ENDPOINT>/v1/traces` and fail fast.
+- **No homelab defaults baked into the Makefile.** The spec Skips unless
+  `TEMPO_URL`/`OTLP_ENDPOINT` are set (otherwise everyone without that LAN
+  host inherits a 2-minute failure). The copy-pasteable invocation lives in
+  docs/testing.md.
+- **Ginkgo ordering:** top-level container order is randomized, so the
+  tracing Describe is fully self-contained (own ns create → make install →
+  make deploy → teardown), same shape as the Manager Describe. `kubectl
+  delete ns` blocks until termination, so no create/delete race between
+  the two Describes.
+
+## Steps
+
+### Step 1 — `test/e2e/tracing_test.go` (new; `//go:build e2e`, package e2e)
+
+`Describe("OTel tracing", Ordered)`:
+
+- **BeforeAll:**
+  1. Read `TEMPO_URL` + `OTLP_ENDPOINT`; `Skip("TEMPO_URL/OTLP_ENDPOINT not set")` when empty.
+  2. `runID := "e2e-" + strconv.FormatInt(time.Now().UnixNano(), 10)`;
+     print it to `GinkgoWriter` so the run is findable in Grafana by hand.
+  3. Create operator ns + restricted-PSS label; `make install`;
+     `make deploy IMG=<managerImage>` (same commands as e2e_test.go:54-75,
+     via `utils.Run`).
+  4. Pre-pull the proxy image to kill the biggest flake source:
+     `docker pull ubuntu/squid:6.6-24.04_edge` + `kind load docker-image`
+     (via `utils.Run`, honoring `KIND`/`KIND_CLUSTER` env like
+     utils.LoadImageToKindClusterWithName).
+  5. OTLP preflight: curl pod POSTing `{}` to `<OTLP_ENDPOINT>/v1/traces`,
+     assert HTTP 200 in its logs (fail message names the endpoint).
+  6. `kubectl set env deployment/egress-proxies-operator-controller-manager
+     -n <ns> OTEL_EXPORTER_OTLP_ENDPOINT=<OTLP_ENDPOINT>
+     "OTEL_RESOURCE_ATTRIBUTES=k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE),test.run.id=<runID>"`
+     — in-place update keeps the var after the downward-API vars ($(VAR)
+     expansion needs that ordering); `exec.Command` means no shell mangling
+     of `$()`. Then `kubectl rollout status`.
+  7. `Eventually`: newest controller pod (sorted by creationTimestamp — a
+     terminating old pod may otherwise be picked) logs contain
+     `"tracing enabled"`.
+- **It "creates proxies and reports reconcile traces":**
+  - Write 2 Proxy manifests (names `proxy-tracing-e2e-1/2`,
+    `provider: kubernetes`, modeled on config/samples/proxy_kubernetes.yaml)
+    to `GinkgoT().TempDir()` (absolute paths — `utils.Run` chdirs the
+    process); `kubectl apply -n default`.
+  - `Eventually` (5m — first squid start) `.status.phase == "Ready"`
+    (confirmed field, api/v1alpha1/proxy_types.go:41).
+  - `Eventually`: Tempo search
+    `{resource.test.run.id="<runID>" && name="provider.create"}` ≥1 hit
+    (BSP flushes every ~5s; 2m default timeout is ample).
+  - Fetch that traceID via `/api/traces/<id>`; assert span names include
+    `Reconcile Proxy`, `reconcile.managed`, `provider.create`,
+    `status.patch`, and resource attr `service.name=egress-proxies-operator`.
+- **It "traces deletion":**
+  - `kubectl delete proxy -n default …`; `Eventually` CRs gone (finalizer
+    → `provider.delete`, DeletionPoll 10s).
+  - `Eventually`: Tempo search finds `provider.delete` for the runID; fetch
+    and assert `reconcile.delete` in the same trace.
+- **AfterAll** (= the sketch's "shut down operator"): delete leftover
+  proxies in `default`; `make undeploy` (SIGTERM → `tracingShutdown`
+  flushes); `make uninstall`; delete operator ns — errors discarded
+  (`_, _ = utils.Run(...)`), mirroring e2e_test.go:79-95.
+- **Tempo client helpers** (same file, stdlib only — the test process runs
+  on the host, which reaches Tempo directly):
+  - `tempoSearch(traceql string)` → `GET {TEMPO_URL}/api/search?q=…&start=…&end=…`
+    (Unix seconds, window = suite start − 5m → now); minimal struct
+    `{Traces []struct{ TraceID string }}`.
+  - `tempoTrace(id string)` → `/api/traces/<id>`, decoded as **OTLP-JSON**
+    (`batches[].scopeSpans[].spans[].name`, resource attrs as
+    `{key, value:{stringValue}}`) — not Jaeger's shape. Helper flattens to
+    a span-name set + resource attr map.
+
+### Step 2 — Makefile
+
+- `test-e2e`: pass `TEMPO_URL`/`OTLP_ENDPOINT` through to `go test` env
+  (no defaults) and add `-timeout 30m` — the suite already runs
+  docker-build + kind-load in BeforeSuite plus 3–5m Eventuallys, and this
+  adds a second full deploy cycle + image pulls; the 10m default will be
+  exceeded on cold caches.
+
+### Step 3 — Docs
+
+- `docs/testing.md` (§ e2e, currently "scaffold… only asserts manager runs
+  and serves metrics"): document the tracing spec, its Skip gate, and the
+  invocation:
+  `TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e`.
+- Execution-log entries per step in `docs/plans-executions/2026-08-24-1224-tracing-e2e.md`.
+- CHANGELOG entry only after the user confirms a green run (house rule).
+
+## Not doing (and why)
+
+- No dedicated flush assertion on shutdown — teardown exercises the flush
+  path, but attributing a specific late span to it is guesswork.
+- No gRPC (4317) variant — http/protobuf is the operator default and the
+  verified path; a variant run is a one-env-var change if ever wanted.
+- No changes to `internal/` — the whole test works through public surface
+  (env vars, kubectl, Tempo API), which is the point of an e2e test.
+
+## Verification
+
+1. `TEMPO_URL=http://192.168.0.30:3200 OTLP_ENDPOINT=http://192.168.0.30:4318 make test-e2e`
+   → tracing spec passes (both Its); without the env vars → spec reports
+   Skipped, remainder of suite unaffected.
+2. In Grafana: TraceQL `{resource.test.run.id="<runID printed in test log>"}`
+   shows the run's traces with the expected tree.
+3. `go vet -tags=e2e ./...` clean (documented routine).
+4. A deliberately wrong `OTLP_ENDPOINT` (e.g. port 9) fails fast in the
+   preflight step with a clear message, not a 2-minute search timeout.

docs/plans/2026-09-10-0805-kvm-libvirt-tracing.md

@@ -0,0 +1,186 @@
+# Plan: Trace every libvirt call in the KVM provider
+**Created:** 2026-09-10 08:05
+
+## Context
+
+Step 7 of the KVM provider plan (live validation on `beelink`) has gone through
+three fixes found only on the real host, and the current failure (guest hangs at
+GRUB's "Booting" line) is being diagnosed blind: the provider logs at V(1)/V(2)
+but nothing shows them. The integration test never installs a logger, so
+controller-runtime prints "log.SetLogger(...) was never called" and swallows
+everything; and even with a logger, the provider only logs per *operation*
+(Create, Get…), not per libvirt RPC, so the sequence and timing of what was
+actually sent to the hypervisor is invisible.
+
+Goal: one log line per libvirt call at debug level (`--zap-log-level=debug`, logr
+V(1) in this repo's scheme: V(1) = outcome per operation, V(2) = curated detail,
+V(5) = raw wire, per the GCP verbose-logging plans), with method, host, domain or
+volume, duration and the libvirt error code on failure; and those lines visible in
+`make test-integration-kvm` output.
+
+Assumption: this lands on the current `feat/kvm-provider` branch, since it exists
+to finish that branch's validation, and the plan file plus execution log follow
+CLAUDE.md conventions (plan committed alone first, execution summary alongside
+each step). Say so if you want a separate branch instead.
+
+## Design
+
+- **Decorator, not call-site logging.** New `tracingAPI` implements the 17-method
+  `libvirtAPI` seam (`internal/provider/kvm/conn.go:26-44`), wrapping the real
+  client. Every method logs one V(1) line after the inner call returns. Applied in
+  `hostPool.call`, so every provider method, `image.go`'s cache and the
+  integration test's own `p.hosts.call` are traced with no per-site changes.
+- **Logger passed explicitly.** `call(ctx, log, host, fn)` and `get(ctx, log, host)`
+  gain a `logr.Logger` parameter, matching how this package already threads `log`
+  into every helper. The five call sites (`kvm.go:169, 322, 458, 530`,
+  `kvm_integration_test.go:220`) already hold the right logger with
+  provider/host/name values. `call` does `log = log.WithName("libvirt")`, so trace
+  lines are named `kvm.libvirt`.
+- **Wrap only when `log.V(1).Enabled()`.** Zero cost at info level; the
+  controller-runtime unfulfilled root sink reports disabled, so unit tests and
+  `conn_test.go`'s `hostClient{api: nil}` cases are unaffected.
+- **One line per RPC at every level.** At V(2) the same line gains extra keys
+  (`xml`, `metadata`, `addresses`, `names`) instead of a second line. Upload and
+  download log offset/length/duration only, never bytes (the seed ISO carries
+  cloud-init). Domain and volume XML contain no secrets, so V(2) is fine for them.
+- **Connection events traced too** in the pool: dial with duration, dial failure,
+  dead cached client redial, and both drop reasons (context cancelled, transport
+  error). `dialSSH`/`connectLibvirt`/`keepalive` stay untouched: changing
+  `hostDialer`'s signature would ripple into every test dialer, and the pool
+  already observes every event.
+- **Rendering.** Handles by name only (`domain`, `pool`, `volume`), never UUID/Key.
+  `libvirt.DomainState` and `DomainInterfaceAddressesSource` have stringers, pass
+  them typed. Bitmask flags don't stringify, log as integers only when non-zero.
+  `libvirt.OptString` → first element or `""` under `uri`.
+- **awaitOrCancel.** `done` runs inside fn's goroutine; on the normal path it logs
+  before `call` returns. On cancel, the abandoned RPC logs one late line when the
+  closed connection makes it fail: desirable in production, and in the integration
+  test only reachable in an already-failing timeout run (testr panics on a log after
+  the test ends; note that in the header, don't engineer around it).
+
+## Steps
+
+### Step 0 — Save plan
+Copy this file to `docs/plans/2026-09-10-0805-kvm-libvirt-tracing.md`, commit alone.
+
+### Step 1 — `errors.go`: shared error fields
+Factor `libvirtErrorFields(err error) []any` out of `logAPIError` (`errors.go:62-72`):
+returns `libvirtCode` (uint32), `libvirtCodeName` (`libvirt.ErrorNumber(code)`,
+e.g. `ErrNoDomain`), `libvirtMessage`; nil for non-libvirt errors; works through
+`%w` wrapping via `errors.As`. `logAPIError` keeps its message and gains
+`libvirtCodeName`. Test `TestLibvirtErrorFields` (table: libvirt.Error, wrapped,
+plain error) in `errors_test.go`.
+
+### Step 2 — new `trace.go`
+```go
+type tracingAPI struct { inner libvirtAPI; log logr.Logger }
+type tracedCall struct { t *tracingAPI; method string; start time.Time; kv []any }
+func (t *tracingAPI) begin(method string, kv ...any) *tracedCall
+func (c *tracedCall) detail(kv ...any) *tracedCall // appended only if V(2) enabled
+func (c *tracedCall) done(err error, kv ...any)    // one V(1) line
+```
+`done` emits `log.V(1).Info("libvirt call", ...)` with keys in order: `method`,
+begin args, result kv, `duration` (rounded to µs), then on error `error` plus
+`libvirtErrorFields`. Per-method keys:
+
+| method | V(1) args | V(1) results | V(2) extra |
+|---|---|---|---|
+| DomainLookupByName | domain | | |
+| DomainDefineXML | xmlBytes | domain | xml |
+| DomainCreate, DomainDestroy | domain | | |
+| DomainUndefineFlags | domain, flags | | |
+| DomainGetState | domain | state, reason | |
+| DomainGetMetadata | domain, type, uri | metadataBytes | metadata |
+| DomainInterfaceAddresses | domain, source | interfaces (count) | addresses |
+| ConnectListAllDomains | | count | names |
+| StoragePoolLookupByName, StoragePoolRefresh | pool | | |
+| StorageVolLookupByName | pool, volume | | |
+| StorageVolGetPath | pool, volume | path | |
+| StorageVolCreateXML | pool, xmlBytes | volume | xml |
+| StorageVolUpload, StorageVolDownload | pool, volume, offset, length | | (never content) |
+| StorageVolDelete | pool, volume | | |
+
+Return values pass through untouched.
+
+### Step 3 — `conn.go`: pool logging and wrapping
+- `get(ctx, log, host)`: dead cached client → `"libvirt connection lost, redialing"`;
+  time the dial; `"libvirt host connected"` with `address`, `duration`; failure →
+  `"libvirt host dial failed"` with `address`, `duration`, `error`.
+- `call(ctx, log, host, fn)`: `log = log.WithName("libvirt")`; wrap when
+  `log.V(1).Enabled()`; abort closure logs `"libvirt connection dropped"`
+  `reason="context cancelled"` before `drop`; transport-error branch logs the same
+  message with `reason="transport error"`. Update `call`'s doc comment.
+
+### Step 4 — call sites
+`kvm.go` Create/Get/Delete pass `log`, ListByTag passes `hlog`;
+`kvm_integration_test.go:220` passes `p.logger(ctx).WithValues("host", host.Name)`;
+`conn_test.go` (12 `p.call(` sites) gets `var discard = logr.Discard()`.
+
+### Step 5 — integration test output
+- `integrationLogger(t)`: `KVM_TEST_LOG_LEVEL` (default `1`, `strconv.Atoi`,
+  `t.Fatalf` on garbage) → `testr.NewWithOptions(t, testr.Options{LogTimestamp:
+  true, Verbosity: n})` (`github.com/go-logr/logr/testr`, present in logr v1.4.3,
+  no go.mod change); `logf.SetLogger(log)` once so nothing falls back to the
+  unfulfilled root.
+- `TestKVM_lifecycle`: `ctx = logr.NewContext(ctx, log)` after `WithTimeout`; the
+  cleanup ctx gets the same logger.
+- Header comment: document `KVM_TEST_LOG_LEVEL` (1 = one line per RPC, 2 adds
+  XML/metadata/addresses, 0 = only `t.Log`) and the late-line-after-timeout caveat.
+
+### Step 6 — unit tests
+- `kvm_test.go`: `captureContext(verbosity)` like `gcp_test.go:277-286` but with a
+  mutex around the slice; `TestLogging_verbosityTiers` (mirror `gcp_test.go:322-399`):
+  V0 → no lines; V1 → `"msg"="libvirt call"`, `"method"="DomainDefineXML"`,
+  `"method"="StorageVolUpload"`, `"msg"="libvirt host connected"`, provider/host/name
+  values, `"libvirtCodeName"="ErrNoDomain"` from the first lookup, no `"xml"=`;
+  V2 → `"xml"="<domain` and `"metadata"=`; a cloud-init sentinel absent at every tier.
+- `trace_test.go`: `TestTracingAPI_logsEveryMethod` (table of 17 calls over a
+  `readyHost()` fake, exactly one line each, plus
+  `reflect.TypeOf((*libvirtAPI)(nil)).Elem().NumMethod() == len(cases)` so a new
+  interface method without tracing fails); `TestTracingAPI_passesResultsThrough`;
+  `TestTracingAPI_errorFields` (libvirt error → code/name/message; `io.EOF` →
+  `"error"="EOF"`, no code); `TestTracingAPI_detailOnlyAtV2`;
+  `TestTracingAPI_uploadLogsSizeNotContent`.
+- `conn_test.go`: `fakeDialer` gains an `api` field; `TestHostPool_call_tracesAtV1`
+  (V1 → connected + method lines; V0 → no lines and fn receives the bare
+  `*fakeAPI`); `TestHostPool_call_logsDropReason` (transport error, cancel).
+
+### Step 7 — docs, execution log, CHANGELOG
+- `docs/kvm-provider.md`: `## Logging` section before "Known gaps":
+  `--zap-log-level=debug` = one `libvirt call` line per RPC plus connect/drop lines;
+  `--zap-log-level=2` adds XML, metadata, addresses; cloud-init never logged; no
+  V(5) wire tier because go-libvirt exposes no hook. Mention `KVM_TEST_LOG_LEVEL`
+  in its Testing paragraph.
+- `docs/testing.md`: `KVM_TEST_LOG_LEVEL` in the optional vars; `-v` now shows every
+  RPC; extend the `kvm_test.go` table row.
+- `docs/plans-executions/2026-09-10-0805-kvm-libvirt-tracing.md` with the checklist
+  and per-step entries; also a short cross-reference line in the KVM provider
+  execution log's Step 7 section.
+- `CHANGELOG.md` entry once the user confirms the live run shows the trace.
+
+## Verification
+
+```bash
+go build ./... && go vet ./... && go vet -tags=integration ./internal/provider/kvm/
+go test -race -count=1 ./internal/provider/kvm/
+go test -short ./...
+```
+Live, with the usual env: `make test-integration-kvm`. Expect, interleaved with
+`t.Log` lines and attributed to `trace.go:<line>`, lines like
+
+```
+kvm.libvirt: "level"=1 "msg"="libvirt call" "provider"="kvm-integration" "host"="kvm-test" "name"="proxy-…" "method"="DomainLookupByName" "domain"="proxy-…" "duration"="2.1ms" "error"="…" "libvirtCode"=42 "libvirtCodeName"="ErrNoDomain" "libvirtMessage"="…"
+```
+
+plus one `libvirt host connected` line with `duration`, a `StorageVolUpload` line
+whose duration is the seed upload, and no "log.SetLogger(...) was never called"
+text. `KVM_TEST_LOG_LEVEL=2` shows `"xml"="<domain` and `"addresses"=`;
+`KVM_TEST_LOG_LEVEL=0` shows only `t.Log` output. No line at any level contains
+`#cloud-config`.
+
+## Critical files
+- `internal/provider/kvm/conn.go`, `trace.go` (new), `trace_test.go` (new)
+- `internal/provider/kvm/errors.go`, `errors_test.go`
+- `internal/provider/kvm/kvm.go`, `kvm_test.go`, `conn_test.go`
+- `internal/provider/kvm/kvm_integration_test.go`
+- `docs/kvm-provider.md`, `docs/testing.md`

docs/plans/2026-09-10-2222-kvm-review-fixes.md

@@ -0,0 +1,195 @@
+# Plan: Fix the five code-review findings on `feat/kvm-provider`
+**Created:** 2026-09-10 22:22 UTC
+
+## Context
+
+PR #5 (`feat/kvm-provider` → `main`, 19 commits) is open and awaiting merge. A
+`/code-review high` pass over the branch returned five confirmed findings: two that can
+pin a Proxy's finalizer forever, one startup crash-loop, and two in the guest-agent merge
+committed earlier today. All five are fixed on the same branch so the PR updates in place,
+then re-validated against the real hypervisor before merging.
+
+Four decisions, made by the user during planning:
+
+1. **Wedged deletes** — attempt `Delete` even when `Get` fails permanently, make an
+   unconfigured KVM host a no-op delete, and add an annotation that abandons cleanup for
+   whatever still cannot finish.
+2. **Missing `kvm-ssh` Secret** — read the SSH material lazily, so only KVM Proxies fail.
+3. **Guest agent** — stop rewriting the user's cloud-config. Ship the bootstrap as a
+   vendor-data shell script instead.
+4. Validation is unit tests, the integration test against beelink, and the kind e2e. The
+   uncommitted dev-only files stay exactly as they are and out of the PR.
+
+## Why the guest-agent fix is a rewrite, not a patch
+
+Both cloud-init findings come from the same root cause: this operator edits the user's
+document. Reading cloud-init 26.1's sources settles that it never has to.
+
+Vendor-data is consumed by its **own** handler chain with separate script and config paths
+(`stages.py:_default_vendordata_handlers`). A vendor-data **shell script** is therefore
+written to the vendor script directory and run by `cc_scripts_vendor`, never passing
+through the config merger that drops colliding keys. On the final-stage module list it
+runs after `package_update_upgrade_install` and before the user's own `runcmd`, so the
+agent comes up early regardless of what the user's config does.
+
+That also closes the door the previous approach left open. The merge cannot be rescued
+from inside the documents: `merge_how` in the user-data governs only the first source, and
+`merge_how` in vendor-data is popped and discarded by `dict_extract_mergers` before the
+document is ever written. There is no supported way to make vendor-data cloud-config keys
+survive a user-data that defines the same key.
+
+Consequences: user-data reaches the seed byte for byte in any format, so Jinja templates,
+MIME archives, gzip payloads and shell scripts stop being special cases (finding 4), and
+nothing re-serialises YAML, so unquoted scalars keep their type (finding 5). The cost is
+that the script picks the package manager itself where cloud-init's `packages` key was
+distro-agnostic.
+
+## Why the delete fix is shaped this way
+
+KVM is the only provider that resolves a providerID segment against operator config. GCP
+and Kubernetes let the backend answer "not found", so retiring a location yields
+`ErrNotFound` and the finalizer drops. `Provider.host()`
+([kvm.go:118-139](internal/provider/kvm/kvm.go#L118-L139)) returns `ErrPermanent`, and
+`reconcileDelete` ([proxy_controller.go:281-291](internal/controller/proxy_controller.go#L281-L291))
+drops the finalizer only on `ErrNotFound`. `deletionFailure`
+([:327-336](internal/controller/proxy_controller.go#L327-L336)) says in its own comment
+that it retries "until an operator intervenes", and no intervention mechanism exists. The
+annotation is that mechanism, and it also rescues the unconfigured-provider wedge at
+[:276-279](internal/controller/proxy_controller.go#L276-L279).
+
+`Get` keeps returning `ErrPermanent` for an unknown host deliberately. Turning it into
+`ErrNotFound` would make a typo in the host list look like a missing VM on the live path,
+and the reconciler would recreate every affected Proxy elsewhere while the originals keep
+running where garbage collection cannot see them.
+
+## Steps
+
+One commit per step on `feat/kvm-provider`, each ending with
+`Co-Authored-By: Claude Opus 5 (1M context) <noreply@anthropic.com>`.
+
+### Step 0 — Save this plan into the repo
+Copy to `docs/plans/2026-09-10-2222-kvm-review-fixes.md` with the same header timestamp and
+commit it alone, before any code change. Start
+`docs/plans-executions/2026-09-10-2222-kvm-review-fixes.md` with the status checklist when
+Step 1 lands.
+
+### Step 1 — Unwedge deletion (finding 1)
+- `api/v1alpha1/proxy_types.go`: add `AnnotationSkipCleanup = "crawl.example.com/skip-cleanup"`
+  beside `AnnotationSpecHash` ([:59-63](api/v1alpha1/proxy_types.go#L59-L63)), documented as
+  abandoning the backend instance.
+- `internal/controller/proxy_controller.go`, `reconcileDelete`: honour the annotation after
+  the empty-providerID branch and **before** the provider lookup, so it also covers a
+  provider that is no longer configured. Log the abandoned providerID at Info.
+  `ProxyReconciler` has no `EventRecorder`; do not add one for this.
+- Same function: replace the two `if`s after `Get` with a switch. On
+  `provider.Class(err) == provider.ErrPermanent`, call `Delete` anyway, since it is
+  idempotent, and remove the finalizer when it succeeds rather than requeueing into a `Get`
+  that can never converge. On failure, `deletionFailure(errors.Join(getErr, delErr))`.
+  Guard on `err != nil`, since `Class(nil)` is nil.
+- `internal/provider/kvm/kvm.go`, `Delete`: an unconfigured host segment means there is
+  nothing this operator can clean, so log it and return success, mirroring `removeVolumes`
+  ([kvm.go:506-514](internal/provider/kvm/kvm.go#L506-L514)) for a missing pool. `Get` is
+  unchanged.
+- Tests: extend the deletion table in `internal/controller/reconcile_test.go`
+  ([:357-393](internal/controller/reconcile_test.go#L357-L393)) with permanent-Get plus
+  succeeding Delete, permanent-Get plus failing Delete, the annotation with the provider
+  never called, and the annotation on an unconfigured provider. In `kvm_test.go`, the
+  `"host not configured"` case at [:737](internal/provider/kvm/kvm_test.go#L737) flips from
+  `ErrPermanent` to success; add a named test beside `TestDelete_missingPoolIsNotAnError`
+  ([:715](internal/provider/kvm/kvm_test.go#L715)).
+- Docs: the annotation in `README.md` (~line 163) and `docs/architecture.md` (~line 487);
+  a *Known gaps* entry in `docs/kvm-provider.md` saying a domain on a host removed from
+  config can no longer be cleaned up by the operator, the Proxy still finishes deleting,
+  and the VM must be removed by hand because garbage collection only sweeps configured
+  hosts.
+
+### Step 2 — Validate names that become identifiers (finding 2)
+- `internal/provider/config_kvm.go`: add a name regexp beside `sha256Hex`
+  ([:6](internal/provider/config_kvm.go#L6)) allowing letters, digits, dot, dash and
+  underscore. Apply it to `hosts[].name` after the existing empty check
+  ([:129-131](internal/provider/config_kvm.go#L129-L131)) and to each `images` map key,
+  which becomes the cached volume name `base-<key>.<format>`
+  ([image.go:49-55](internal/provider/kvm/image.go#L49-L55)) and half of the image-cache
+  lock key ([image.go:96](internal/provider/kvm/image.go#L96)). `machineTypes` keys are only
+  compared, never embedded, so leave them.
+- Keep the file's first-error-wins style and `fmt.Sprintf` field paths. The host message
+  should name the consequence: the value becomes part of `hosts/<name>/domains/<vm>`, which
+  `parseProviderID` splits on `/` ([id.go:11-21](internal/provider/kvm/id.go#L11-L21)).
+- Tests: two entries in the `TestLoadConfig_kvmInvalid` table
+  ([config_kvm_test.go:76](internal/provider/config_kvm_test.go#L76)), existing
+  name/yaml/wantErrSub shape.
+
+### Step 3 — Read the SSH material lazily (finding 3)
+- `internal/provider/kvm/conn.go`: keep `newSSHAuth`, and add a lazy dialer that builds it
+  on first dial and caches it once it succeeds, so a `kvm-ssh` Secret created after the
+  manager starts heals on the next reconcile with no restart.
+- `internal/provider/kvm/kvm.go`, `New`: stop calling `newSSHAuth`; pass the lazy dialer.
+  Use the context parameter it currently ignores to log a warning when either file is
+  unreadable at startup, keeping the diagnostic without the exit.
+- Error classes: a missing or unreadable file stays unclassified, so `Class` defaults it to
+  transient and the Proxy retries until the Secret appears; an unparseable key or malformed
+  known_hosts wraps `ErrPermanent`. Distinguish with `errors.Is(err, fs.ErrNotExist)`.
+- Fix the two doc comments promising startup failure
+  ([kvm.go:79-81](internal/provider/kvm/kvm.go#L79-L81),
+  [conn.go:182-185](internal/provider/kvm/conn.go#L182-L185)) and the matching claim in
+  `docs/kvm-provider.md` (~lines 107-109). `DISCOVERY_TOKEN` already sets the house
+  convention for an optional mount: degrade with a loud warning.
+- Tests in `conn_test.go`, which already writes key files: `New` succeeds with no key
+  present, the first dial fails transiently, a dial after the file appears succeeds, and a
+  corrupt key is permanent.
+
+### Step 4 — Guest agent via vendor-data script (findings 4 and 5)
+- `internal/provider/kvm/seed.go`: delete `withGuestAgent`, `isCloudConfig`, `appendUnique`
+  and the `sigs.k8s.io/yaml` import. User-data goes onto the seed exactly as the Proxy
+  supplied it.
+- Add the bootstrap as a `#!/bin/sh` vendor-data script: skip when the agent is already
+  present, otherwise install `qemu-guest-agent` through whichever of `apt-get`, `dnf`,
+  `yum`, `zypper` or `apk` exists, then `systemctl enable --now`. Run `apt-get update`
+  before installing, since nothing else guarantees a fresh index when the user's config has
+  no `packages` key. Keep it idempotent and let it log to stdout, which lands in
+  `cloud-init-output.log`.
+- When the provider config also sets `vendorData`, wrap both into a MIME multipart
+  vendor-data: the user's document as one part, the script as another. Cloud-init detects
+  multipart by finding `mime-version:` in the first 4096 bytes, so the header must lead.
+- `internal/provider/config_kvm.go`: add `installGuestAgent`, defaulting to on. Off means
+  the seed carries only the user's own vendor-data and IP discovery falls back to the host
+  ARP table. Nothing fails permanently any more, so the error path in `writeSeed`
+  ([kvm.go:252-255](internal/provider/kvm/kvm.go#L252-L255)) narrows to MIME assembly.
+- Tests in `seed_test.go`: user-data byte-identical for cloud-config, Jinja, MIME, gzip and
+  script inputs; the script present in vendor-data; the opt-out; the multipart case
+  including the `mime-version:` position; keep the existing ISO tests.
+- Docs: rewrite the *What lands on the host* passage added earlier today, the `vendorData`
+  row and a new `installGuestAgent` row in the config table, and the ARP note in
+  *Known gaps*. Cite the cloud-init behaviour that forced the change.
+
+### Step 5 — Validate, record, push
+- `gofmt -l internal/`, `go vet ./...`, `go test -short ./...`.
+- `make test-integration-kvm` against beelink, environment as recorded in the KVM execution
+  log.
+- Rebuild the image, `kind load`, restart the manager, delete and recreate both Proxies,
+  curl a test URL through each.
+- `CHANGELOG.md` entry at the top with a real `date` timestamp, noting it supersedes the
+  merge approach described in today's earlier entry. Add a Run 8 section to
+  `docs/plans-executions/2026-09-04-1404-kvm-provider.md` plus this plan's own execution
+  file. Push with the token helper; PR #5 updates in place.
+
+## Verification
+- Unit: the controller cases prove a permanent `Get` no longer pins the finalizer and that
+  the annotation short-circuits before the provider is touched. `TestDelete_*` proves an
+  unconfigured host is a clean delete while `TestGet_*` stays permanent, which is what keeps
+  the live path from recreating VMs.
+- Seed: assert the uploaded user-data equals the Proxy's `cloudInit` byte for byte, which is
+  the property the old merge could not offer.
+- Integration on beelink: Create, IP via the guest agent, ListByTag, Delete. In the guest,
+  `cloud-init status --long` clean and `systemctl is-active qemu-guest-agent` active.
+- In-cluster: both Proxies reach Ready with an IP and return 204 through squid. Their
+  cloud-config defines its own `packages`, which is the exact case that failed in Run 7.
+- Negative check in kind: rename the `kvm-ssh` Secret away and restart. The pod must stay
+  up, the Kubernetes Proxies must stay Ready, and only the KVM Proxies degrade. Restore the
+  Secret and confirm they recover without a restart.
+
+## Out of scope
+- The two items the review noted but did not report: deleting a cached base image while
+  running VMs back onto it, and an ad-hoc image URL always being treated as qcow2. Both are
+  documented known gaps and neither is a regression from this branch.
+- The uncommitted dev-only files, by the user's decision.

docs/testing.md

@@ -54,6 +54,11 @@ manual runs too.
 | | `metrics_test.go` | `WithMetrics` decorator: classified result labels, error passthrough | fake recorder + static provider |
 | `internal/provider/kubernetes` | `kubernetes_test.go`, `pod_test.go` | Create/Get/Delete/ListByTag over real Pod objects; pure `buildPod`/`squidConf` incl. the `max_filedescriptors` OOM-regression assertion | `client/fake` (real `corev1.Pod`s, no kubelet) |
 | `internal/provider/gcp` | `insert_test.go`, `errors_test.go`, `gcp_test.go` | field-by-field `buildInsertRequest`; HTTP-code classification table; zone-qualified IDs, 409-is-success, 9-row state mapping, ListByTag filter + `ReturnPartialSuccess` | pure builder needs **no fake**; the rest uses the flattened `instancesAPI` seam |
+| `internal/provider/kvm` | `domainxml_test.go`, `volume_test.go`, `seed_test.go`, `id_test.go`, `metadata_test.go` | pure builders: domain/volume XML unmarshalled back and checked field by field, seed ISO reopened with the same library, providerID round-trip, metadata in both namespace spellings | pure |
+| | `errors_test.go`, `conn_test.go` | libvirt-code classification table; connection pool (reuse, redial, drop on transport error, cancel releases a blocked RPC, one dial per host under concurrency); SSH dial, host-key policy, keepalive | fake dialer; a **real in-process `x/crypto/ssh` server** forwarding a unix socket |
+| | `image_test.go`, `kvm_test.go` | image cache (fresh fetch, ready, marker missing, checksum change/mismatch, 4xx/5xx, concurrent callers); Create resume after every partial step, leftover truncated seed, state/IP mapping, every Delete already-gone case, ListByTag across hosts / one down / unreadable domain; logging tiers (V0 silent, V1 one line per RPC, V2 XML) with cloud-init never logged | `httptest` image server + in-memory `fakeAPI` behind the `libvirtAPI` seam |
+| | `trace_test.go`, `conn_test.go`, `errors_test.go` | every `libvirtAPI` method traced exactly once (guarded by reflection on the interface), results and errors pass through, libvirt error fields, detail keys only at V2, upload content never logged; pool connect/drop lines, no wrapping below V1 | `fakeAPI` + `funcr` capture |
+| | `kvm_integration_test.go` (`-tags=integration`) | one real VM: image fetch, Create, idempotent re-Create, Running with IP, ListByTag, Delete, pool state afterwards | a **real hypervisor** — see below |
 | `internal/health` | `probe_test.go` | probes through a **real CONNECT-capable proxy stub** to a real TLS server: tunnel success, refused CONNECT, wrong status, dead proxy, plain-http forward | `httptest` + hijacked bidirectional tunnel |
 | | `engine_test.go` | thresholds, first-verdict, latency suppression matrix, dropped-event retry, stale-probe UID guard, tick scheduling/seeding/pruning, `Start` end-to-end | fake `client.Reader` + injected `probeFn` |
 | `internal/lease` | `store_test.go` | capacity, `MaxLeases=0`, all three selection tie-breaks, target-scoped vs global cooldowns, expiry via fake clock, report-on-retained-lease, idempotent release, **40 concurrent acquires never exceeding capacity** | injectable clock; the concurrency case is why `-race` matters |
@@ -83,6 +88,59 @@ envtest suite the scaffold generated.
   bug (below).
 - **Live GCP**: no test talks to Google. The seam boundary
   (`buildInsertRequest` + classification) is tested exhaustively instead.
+- **Live libvirt, by default**: the KVM unit tests run over an in-memory
+  fake of the 17 libvirt calls the provider uses. Whether libvirt accepts
+  the domain XML, whether a raw qcow2 upload plus pool refresh yields a
+  usable backing image, and whether the guest actually boots and reports
+  an address are provable only on a real host — that is the opt-in
+  integration test below.
+
+## The KVM integration test (real hypervisor)
+
+`internal/provider/kvm/kvm_integration_test.go` compiles only under
+`-tags=integration` and skips itself unless the environment names a
+host. It deviates from the "testcontainers for real infra" convention on
+purpose: libvirt needs `/dev/kvm` and a bridge to a DHCP network, and a
+container has neither. So it targets whichever hypervisor you point it
+at and leaves that host's pool with one more cached base image than it
+had.
+
+```sh
+export KVM_TEST_HOST=nas1.home.lan:22          # SSH endpoint
+export KVM_TEST_USER=virt                      # must be in the libvirt group
+export KVM_TEST_SSH_KEY=$HOME/.ssh/id_ed25519  # private key for that user
+export KVM_TEST_BRIDGE=br0                     # bridge to a network with DHCP
+export KVM_TEST_IMAGE_URL=https://cloud.debian.org/images/cloud/trixie/latest/debian-13-generic-amd64.qcow2
+make test-integration-kvm
+```
+
+Optional: `KVM_TEST_KNOWN_HOSTS` (without it host keys are **not**
+verified — the log says so), `KVM_TEST_IMAGE_SHA256`, `KVM_TEST_POOL`
+(default `default`), `KVM_TEST_SOCKET`, `KVM_TEST_TIMEOUT` (default
+`20m`, must cover the first-time image download), `KVM_TEST_KEEP`
+to leave the VM behind for `virsh console` when something goes wrong,
+and `KVM_TEST_LOG_LEVEL` (default `1`) for how much of the provider's
+logging the `-v` output shows: at `1` every libvirt RPC is one compact
+line (`HH:MM:SS.mmm libvirt virDomainLookupByName domain=... duration=...
+error=... libvirtError=ErrNoDomain`), interleaved with the test's own
+`t.Log` lines; `2` adds the domain and volume XML, metadata and
+addresses; `0` leaves only `t.Log`. The per-run constants (provider,
+host, domain name) are left off each line. See the Logging section of
+[kvm-provider.md](kvm-provider.md#logging).
+
+What one run asserts, in order: `New` dials the host; `Create` returns a
+`hosts/<host>/domains/<name>` ID (downloading the image on a cold host —
+the log prints how long it took); a second `Create` returns the same ID;
+`Get` reaches `Running` with an IPv4 within the budget, and the UID and
+`CreatedAt` survive the metadata round-trip through libvirt; `ListByTag`
+lists it; `Delete` removes it, `Get` says `ErrNotFound`, a second
+`Delete` is a no-op, and the pool holds the base image and its marker
+but no per-VM overlay or seed. It also tries a TCP connect to port 22 on
+the guest, but only logs the outcome — the machine running the test may
+not route to the bridge network.
+
+The test is not part of `make test` and not run in CI. Keep it compiling
+with `go vet -tags=integration ./...` when the provider's internals move.
 
 ## The scaffolded `make test-e2e` suite
 
@@ -92,8 +150,38 @@ compiles only under `-tags=e2e`, manages its own kind cluster
 (`make test-e2e` / `make cleanup-test-e2e`), and has been kept compiling
 (`go vet -tags=e2e ./...` is part of the routine) but is **not part of
 `make test` and was not used for the release verification** — the manual
-kind run below covers strictly more. Treat it as scaffold to grow into if
+kind run below covers strictly more.
-CI wants an automated cluster smoke test.
+
+### The OTel tracing spec (Tempo-gated)
+
+`test/e2e/tracing_test.go` proves the full tracing pipeline against a
+**real Tempo**: deploy in kind with tracing enabled, create two
+kubernetes-provider proxies, delete them, and assert in Tempo that the
+traces exist with the documented span topology (`Reconcile Proxy` →
+`reconcile.managed` / `provider.create` / `status.patch`, and
+`reconcile.delete` / `provider.delete` on the way out).
+
+It **skips unless both env vars are set** (so the rest of the suite runs
+anywhere). Homelab invocation:
+
+```bash
+TEMPO_URL=http://192.168.0.30:3200 \
+OTLP_ENDPOINT=http://192.168.0.30:4318 \
+make test-e2e
+```
+
+Worth knowing:
+
+- Every span of a run carries the resource attribute
+  `test.run.id=e2e-<nanos>` (injected via `OTEL_RESOURCE_ATTRIBUTES`, no
+  code involved); the run ID is printed in the test log, and
+  `{resource.test.run.id="<id>"}` in Grafana shows exactly that run.
+- The spec preflights the OTLP endpoint **from inside the cluster** with a
+  curl pod and fails fast with a clear message if it's unreachable —
+  export failures are otherwise only visible at `-zap-log-level=1`.
+- Proxy CRs are created in `default`, not the operator namespace: the
+  squid pods carry no securityContext and the operator namespace enforces
+  restricted PSS.
 
 ## The kind verification run (the real end-to-end)
 

go.mod

@@ -5,12 +5,19 @@ go 1.26.0
 require (
 	cloud.google.com/go/compute v1.65.0
 	github.com/digitalocean/go-libvirt v0.0.0-20260814190004-1a83157e1858
-	github.com/go-logr/logr v1.4.3
+	github.com/go-logr/logr v1.4.4
 	github.com/kdomanski/iso9660 v0.4.0
 	github.com/onsi/ginkgo/v2 v2.27.4
 	github.com/onsi/gomega v1.39.0
 	github.com/prometheus/client_golang v1.23.2
-	golang.org/x/crypto v0.56.0
+	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0
+	go.opentelemetry.io/otel v1.45.0
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0
+	go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0
+	go.opentelemetry.io/otel/sdk v1.45.0
+	go.opentelemetry.io/otel/trace v1.45.0
+	golang.org/x/crypto v0.54.0
 	google.golang.org/api v0.292.0
 	google.golang.org/protobuf v1.36.12-0.20260120151049-f2248ac996af
 	k8s.io/api v0.36.0
@@ -34,7 +41,7 @@ require (
 	github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc // indirect
 	github.com/emicklei/go-restful/v3 v3.13.0 // indirect
 	github.com/evanphx/json-patch/v5 v5.9.11 // indirect
-	github.com/felixge/httpsnoop v1.0.4 // indirect
+	github.com/felixge/httpsnoop v1.1.0 // indirect
 	github.com/fsnotify/fsnotify v1.9.0 // indirect
 	github.com/fxamacker/cbor/v2 v2.9.0 // indirect
 	github.com/go-logr/stdr v1.2.2 // indirect
@@ -51,7 +58,7 @@ require (
 	github.com/google/uuid v1.6.0 // indirect
 	github.com/googleapis/enterprise-certificate-proxy v0.3.19 // indirect
 	github.com/googleapis/gax-go/v2 v2.23.0 // indirect
-	github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7 // indirect
+	github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0 // indirect
 	github.com/inconshreveable/mousetrap v1.1.0 // indirect
 	github.com/josharian/intern v1.0.0 // indirect
 	github.com/json-iterator/go v1.1.12 // indirect
@@ -69,31 +76,26 @@ require (
 	github.com/stoewer/go-strcase v1.3.0 // indirect
 	github.com/x448/float16 v0.8.4 // indirect
 	go.opentelemetry.io/auto/sdk v1.2.1 // indirect
-	go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0 // indirect
+	go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0 // indirect
-	go.opentelemetry.io/otel v1.44.0 // indirect
+	go.opentelemetry.io/otel/metric v1.45.0 // indirect
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0 // indirect
+	go.opentelemetry.io/proto/otlp v1.11.0 // indirect
-	go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0 // indirect
-	go.opentelemetry.io/otel/metric v1.44.0 // indirect
-	go.opentelemetry.io/otel/sdk v1.44.0 // indirect
-	go.opentelemetry.io/otel/trace v1.44.0 // indirect
-	go.opentelemetry.io/proto/otlp v1.9.0 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
 	go.uber.org/zap v1.27.1 // indirect
 	go.yaml.in/yaml/v2 v2.4.3 // indirect
 	go.yaml.in/yaml/v3 v3.0.4 // indirect
 	golang.org/x/exp v0.0.0-20251219203646-944ab1f22d93 // indirect
-	golang.org/x/mod v0.38.0 // indirect
+	golang.org/x/mod v0.37.0 // indirect
 	golang.org/x/net v0.57.0 // indirect
 	golang.org/x/oauth2 v0.36.0 // indirect
 	golang.org/x/sync v0.22.0 // indirect
 	golang.org/x/sys v0.47.0 // indirect
 	golang.org/x/term v0.45.0 // indirect
-	golang.org/x/text v0.41.0 // indirect
+	golang.org/x/text v0.40.0 // indirect
 	golang.org/x/time v0.15.0 // indirect
-	golang.org/x/tools v0.48.0 // indirect
+	golang.org/x/tools v0.47.0 // indirect
 	gomodules.xyz/jsonpatch/v2 v2.4.0 // indirect
 	google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7 // indirect
-	google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7 // indirect
+	google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d // indirect
 	google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d // indirect
 	google.golang.org/grpc v1.83.0 // indirect
 	gopkg.in/evanphx/json-patch.v4 v4.13.0 // indirect

go.sum

@@ -36,8 +36,8 @@ github.com/evanphx/json-patch v0.5.2 h1:xVCHIVMUu1wtM/VkR9jVZ45N3FhZfYMMYGorLCR8
 github.com/evanphx/json-patch v0.5.2/go.mod h1:ZWS5hhDbVDyob71nXKNL0+PWn6ToqBHMikGIFbs31qQ=
 github.com/evanphx/json-patch/v5 v5.9.11 h1:/8HVnzMq13/3x9TPvjG08wUGqBTmZBsCWzjTM0wiaDU=
 github.com/evanphx/json-patch/v5 v5.9.11/go.mod h1:3j+LviiESTElxA4p3EMKAB9HXj3/XEtnUf6OZxqIQTM=
-github.com/felixge/httpsnoop v1.0.4 h1:NFTV2Zj1bL4mc9sqWACXbQFVBBg2W3GPvqp8/ESS2Wg=
+github.com/felixge/httpsnoop v1.1.0 h1:3YtUj32ZZkqZtt3sZZsClsymw/QDuVfpNhoA31zeORc=
-github.com/felixge/httpsnoop v1.0.4/go.mod h1:m8KPJKqk1gH5J9DgRY2ASl2lWCfGKXixSwevea8zH2U=
+github.com/felixge/httpsnoop v1.1.0/go.mod h1:Zqxgdd+1Rkcz8euOqdr7lqgCRJztwr5hp9vDSi5UZCE=
 github.com/fsnotify/fsnotify v1.9.0 h1:2Ml+OJNzbYCTzsxtv8vKSFD9PbJjmhYF14k/jKC7S9k=
 github.com/fsnotify/fsnotify v1.9.0/go.mod h1:8jBTzvmWwFyi3Pb8djgCCO5IBqzKJ/Jwo8TRcHyHii0=
 github.com/fxamacker/cbor/v2 v2.9.0 h1:NpKPmjDBgUfBms6tr6JZkTHtfFGcMKsw3eGcmD/sapM=
@@ -49,8 +49,8 @@ github.com/gkampitakis/go-diff v1.3.2/go.mod h1:LLgOrpqleQe26cte8s36HTWcTmMEur6O
 github.com/gkampitakis/go-snaps v0.5.15 h1:amyJrvM1D33cPHwVrjo9jQxX8g/7E2wYdZ+01KS3zGE=
 github.com/gkampitakis/go-snaps v0.5.15/go.mod h1:HNpx/9GoKisdhw9AFOBT1N7DBs9DiHo/hGheFGBZ+mc=
 github.com/go-logr/logr v1.2.2/go.mod h1:jdQByPbusPIv2/zmleS9BjJVeZ6kBagPoEUsqbVz/1A=
-github.com/go-logr/logr v1.4.3 h1:CjnDlHq8ikf6E492q6eKboGOC0T8CDaOvkHCIg8idEI=
+github.com/go-logr/logr v1.4.4 h1:tG4xh9yMsRCAiodLVTxyrkzSZ9+o0L1Kg/+cPVcbP/8=
-github.com/go-logr/logr v1.4.3/go.mod h1:9T104GzyrTigFIr8wt5mBrctHMim0Nb2HLGrmQ40KvY=
+github.com/go-logr/logr v1.4.4/go.mod h1:9T104GzyrTigFIr8wt5mBrctHMim0Nb2HLGrmQ40KvY=
 github.com/go-logr/stdr v1.2.2 h1:hSWxHoqTgW2S2qGc0LTAI563KZ5YKYRhT3MFKZMbjag=
 github.com/go-logr/stdr v1.2.2/go.mod h1:mMo/vtBO5dYbehREoey6XUKy/eSumjCCveDpRre4VKE=
 github.com/go-logr/zapr v1.3.0 h1:XGdV8XW8zdwFiwOA2Dryh1gj2KRQyOOoNmBy4EplIcQ=
@@ -88,8 +88,8 @@ github.com/googleapis/enterprise-certificate-proxy v0.3.19 h1:mMOE7DN2+p76/EdIrm
 github.com/googleapis/enterprise-certificate-proxy v0.3.19/go.mod h1:rSEsBUemEBZEexP2y6jPp16LUmUbjmSbcPMQizR0o4k=
 github.com/googleapis/gax-go/v2 v2.23.0 h1:Tchl7qkvE7Ip3y+ztvNufYFvkfqTe7NfLTYGIdJRLuE=
 github.com/googleapis/gax-go/v2 v2.23.0/go.mod h1:rBQKOVJCdb8IFEzg+FCwlt1LP/xMDGuqUXhUG+XMXEg=
-github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7 h1:X+2YciYSxvMQK0UZ7sg45ZVabVZBeBuvMkmuI2V3Fak=
+github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0 h1:5VipnvEpbqr2gA2VbM+nYVbkIF28c5ZQfqCBQ5g2xfk=
-github.com/grpc-ecosystem/grpc-gateway/v2 v2.27.7/go.mod h1:lW34nIZuQ8UDPdkon5fmfp2l3+ZkQ2me/+oecHYLOII=
+github.com/grpc-ecosystem/grpc-gateway/v2 v2.29.0/go.mod h1:Hyl3n6Twe1hvtd9XUXDec4pTvgMSEixRuQKPTMH2bNs=
 github.com/inconshreveable/mousetrap v1.1.0 h1:wN+x4NVGpMsO7ErUn/mUI3vEoE6Jt13X2s0bqwp9tc8=
 github.com/inconshreveable/mousetrap v1.1.0/go.mod h1:vpF70FUmC8bwa3OWnCshd2FqLfsEA9PFc4w1p2J65bw=
 github.com/josharian/intern v1.0.0 h1:vlS4z54oSdjm0bgjRigI+G1HpF+tI+9rE5LLzOg8HmY=
@@ -174,24 +174,28 @@ github.com/x448/float16 v0.8.4 h1:qLwI1I70+NjRFUR3zs1JPUCgaCXSh3SW62uAKT1mSBM=
 github.com/x448/float16 v0.8.4/go.mod h1:14CWIYCyZA/cWjXOioeEpHeN/83MdbZDRQHoFcYsOfg=
 go.opentelemetry.io/auto/sdk v1.2.1 h1:jXsnJ4Lmnqd11kwkBV2LgLoFMZKizbCi5fNZ/ipaZ64=
 go.opentelemetry.io/auto/sdk v1.2.1/go.mod h1:KRTj+aOaElaLi+wW1kO/DZRXwkF4C5xPbEe3ZiIhN7Y=
-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0 h1:OyrsyzuttWTSur2qN/Lm0m2a8yqyIjUVBZcxFPuXq2o=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0 h1:LMuyCAyfalSjDyjdC65nK6N0zoTT63+E/u95X0JovZI=
-go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.67.0/go.mod h1:C2NGBr+kAB4bk3xtMXfZ94gqFDtg/GkI7e9zqGh5Beg=
+go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp v0.70.0/go.mod h1:085m8qbm4hgc8rZWGDEa4vmyyo2c3nPxUslYUKUIU04=
-go.opentelemetry.io/otel v1.44.0 h1:JjwHmHpA4iZ3wBxluu2fbbE7j4kqlE8jXyAyPXH7HqU=
+go.opentelemetry.io/otel v1.45.0 h1:pdrWmLHofpubmArBv1LgFSv1Z0Ie/ppdZzu+kUN5EeU=
-go.opentelemetry.io/otel v1.44.0/go.mod h1:BMgjTHL9WPRlRjL2oZCBTL4whCGtXch2H4BhOPIAyYc=
+go.opentelemetry.io/otel v1.45.0/go.mod h1:XZxIqPapzEYnhNSScF5DIqXhm/rYi0FzCe2XddAwZfQ=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0 h1:QKdN8ly8zEMrByybbQgv8cWBcdAarwmIPZ6FThrWXJs=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0 h1:QRefszxJmfPdjXUUm3j6iDzY03mTPXMjqErFqQ67vUg=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.40.0/go.mod h1:bTdK1nhqF76qiPoCCdyFIV+N/sRHYXYCTQc+3VCi3MI=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace v1.45.0/go.mod h1:Tiz03lTBVBrm7eWZBOidzEaYaJa8tjwGUGv6d8mlTyk=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0 h1:DvJDOPmSWQHWywQS6lKL+pb8s3gBLOZUtw4N+mavW1I=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0 h1:fG5MCxGz8+2VtrN/WgqSpJFctVz24gpxj8CxkKmc8Ww=
-go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.40.0/go.mod h1:EtekO9DEJb4/jRyN4v4Qjc2yA7AtfCBuz2FynRUWTXs=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc v1.45.0/go.mod h1:BmAYTn+3ysbRe+IU2msxmf5Rx3g6DHvex+tWI3LdhYI=
-go.opentelemetry.io/otel/metric v1.44.0 h1:1w0gILTcHdr3YI+ixLyjemwrVnsMURbTZFrSYCdDdmc=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0 h1:QBajQ2SrwQijzHyZbQlPsuIzpl/ll8DY6wPWsajeGcI=
-go.opentelemetry.io/otel/metric v1.44.0/go.mod h1:8O7hanEPBNgEMmybD3s2VBKcgWOCsA6tzHBPODAiquo=
+go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp v1.45.0/go.mod h1:08ZQLjrPLQ6R4kAXvuOvODEer5Yh4CoFvll5qB2BCI8=
-go.opentelemetry.io/otel/sdk v1.44.0 h1:nHYwb9lK+fJPU/dnT6s7W7Z8itMWyqrnVfbheVYrZ58=
+go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0 h1:lsA/S1bxgdbyFGkTj+3meEdJ6ADVU7QoFstV6MXgE68=
-go.opentelemetry.io/otel/sdk v1.44.0/go.mod h1:Osuydd3Se74nqjAKxid74N5eC+jfEqfTegHRnq58oK0=
+go.opentelemetry.io/otel/exporters/stdout/stdouttrace v1.45.0/go.mod h1:L7u+MirGoB1bjeLH66+xDykF4RC8C3RN7lIFpBiewUo=
-go.opentelemetry.io/otel/sdk/metric v1.44.0 h1:3LlKgI+VjbVsjNRFZJZAJ30WjXC5VkNRks6si09iEfI=
+go.opentelemetry.io/otel/metric v1.45.0 h1:7Eg1uH7CJ5cXv9is6tnBe1FI6rj1nwUdbFypRm3br/M=
-go.opentelemetry.io/otel/sdk/metric v1.44.0/go.mod h1:5B5pMARnXxKhltooO4xUuCBorl65a4EpnTalObqOigA=
+go.opentelemetry.io/otel/metric v1.45.0/go.mod h1:HAPbm1nd3p1PmFH7v2dR+6BjXxw+Lq4a2+pndMAm08s=
-go.opentelemetry.io/otel/trace v1.44.0 h1:jxF5CsGYCe74MCRx2X4g7WsY/VBKRqqpNvXlX/6gtIk=
+go.opentelemetry.io/otel/sdk v1.45.0 h1:4VVSMgQ83dUgW2aoX5f6JgLvHwIvzcuLnF9lUdCSpCw=
-go.opentelemetry.io/otel/trace v1.44.0/go.mod h1:oLl1jrMQAVo6v3GAggN+1VH9VIz9iUSvW53sW1Q8PIE=
+go.opentelemetry.io/otel/sdk v1.45.0/go.mod h1:Sr40LgXV7DsKMMJMKOhUWOgMWTfAaqvm2kF0g7ilwuA=
-go.opentelemetry.io/proto/otlp v1.9.0 h1:l706jCMITVouPOqEnii2fIAuO3IVGBRPV5ICjceRb/A=
+go.opentelemetry.io/otel/sdk/metric v1.45.0 h1:oVFszMfyj1Am6s24Vtc7wBb8BKLcwepJjNEYILuiE3o=
-go.opentelemetry.io/proto/otlp v1.9.0/go.mod h1:xE+Cx5E/eEHw+ISFkwPLwCZefwVjY+pqKg1qcK03+/4=
+go.opentelemetry.io/otel/sdk/metric v1.45.0/go.mod h1:vUWUxDZvu1WVRj8JA8S0AdhsPrZoDpA2DdZauIh4mDA=
+go.opentelemetry.io/otel/trace v1.45.0 h1:l/mP6Uv7oNO7/TblbhpbgMidxhq1uO/rPsikOyVhxag=
+go.opentelemetry.io/otel/trace v1.45.0/go.mod h1:qoJJA2xNMnxRrdISU/kLtfUH2wNeQbiv+jhs/CxI8bc=
+go.opentelemetry.io/proto/otlp v1.11.0 h1:5rrYs0Ykyj50sdU/JU0x8etU+LubXWb+gED6TbEdMIk=
+go.opentelemetry.io/proto/otlp v1.11.0/go.mod h1:SmVizdCOAm3XBtG1g1NnOdhW6jtddT72hLMhv8VwA8E=
 go.uber.org/goleak v1.3.0 h1:2K3zAYmnTNqV73imy9J1T3WC+gmCePx2hEGkimedGto=
 go.uber.org/goleak v1.3.0/go.mod h1:CoHD4mav9JJNrW/WLlf7HGZPjdw8EucARQHekz1X6bE=
 go.uber.org/multierr v1.11.0 h1:blXXJkSxSSfBVBlC76pxqeO+LN3aDfLQo+309xJstO0=
@@ -202,12 +206,12 @@ go.yaml.in/yaml/v2 v2.4.3 h1:6gvOSjQoTB3vt1l+CU+tSyi/HOjfOjRLJ4YwYZGwRO0=
 go.yaml.in/yaml/v2 v2.4.3/go.mod h1:zSxWcmIDjOzPXpjlTTbAsKokqkDNAVtZO0WOMiT90s8=
 go.yaml.in/yaml/v3 v3.0.4 h1:tfq32ie2Jv2UxXFdLJdh3jXuOzWiL1fo0bu/FbuKpbc=
 go.yaml.in/yaml/v3 v3.0.4/go.mod h1:DhzuOOF2ATzADvBadXxruRBLzYTpT36CKvDb3+aBEFg=
-golang.org/x/crypto v0.56.0 h1:GUh5Ii4J5jtcseSMiRqr1jXCNHoxjeV9Fmekc2oLy6Y=
+golang.org/x/crypto v0.54.0 h1:YLIA59K4fiNzHzjnZt2tUJQjQtUWfWbeHBqKtk3eScw=
-golang.org/x/crypto v0.56.0/go.mod h1:OMW5y6CY9l38uPLmxU6l6pwcXp1obtLo3e6gT7gQR2I=
+golang.org/x/crypto v0.54.0/go.mod h1:KWL8ny2AZdGR2cWmzeHrp2azQPGogOv+HeQaVEXC2dk=
 golang.org/x/exp v0.0.0-20251219203646-944ab1f22d93 h1:fQsdNF2N+/YewlRZiricy4P1iimyPKZ/xwniHj8Q2a0=
 golang.org/x/exp v0.0.0-20251219203646-944ab1f22d93/go.mod h1:EPRbTFwzwjXj9NpYyyrvenVh9Y+GFeEvMNh7Xuz7xgU=
-golang.org/x/mod v0.38.0 h1:MECBjubtXD7yj4HrhIUcywNaGeNVUdfVnxmPajOk4yk=
+golang.org/x/mod v0.37.0 h1:vF1DjpVEshcIqoEaauuHebaLk1O1forxjxBaVn884JQ=
-golang.org/x/mod v0.38.0/go.mod h1:V6Xz0pq8TQ3dGqVQ1FVHuelZpAL0uNhSkk9ogYP3c40=
+golang.org/x/mod v0.37.0/go.mod h1:m8S8VeM9r4dzDwjrKO0a1sZP3YjeMamRRlD+fmR2Q/0=
 golang.org/x/net v0.57.0 h1:K5+3DljvIuDG9/Jv9rvyMywYNFCQ9RSUY6OOTTkT+tE=
 golang.org/x/net v0.57.0/go.mod h1:KpXc8iv+r3XplLAG/f7Jsf9RPszJzdR0f58q9vGOuEU=
 golang.org/x/oauth2 v0.36.0 h1:peZ/1z27fi9hUOFCAZaHyrpWG5lwe0RJEEEeH0ThlIs=
@@ -218,12 +222,12 @@ golang.org/x/sys v0.47.0 h1:o7XGOvZQCADBQQ4Y7VNq2dRWQR7JmOUW8Kxx4ZsNgWs=
 golang.org/x/sys v0.47.0/go.mod h1:4GL1E5IUh+htKOUEOaiffhrAeqysfVGipDYzABqnCmw=
 golang.org/x/term v0.45.0 h1:NwWyBmoJCbfTHpxrWoZ9C6/VxOf7ic219I8xZZFdrf0=
 golang.org/x/term v0.45.0/go.mod h1:9aqxs0blBcrm/n0L9QW0aRVD+ktan8ssZromtqJC43w=
-golang.org/x/text v0.41.0 h1:vz/seA0lnX87Othu2f/0L24RcgrXD9/YFTSuGjj3rH8=
+golang.org/x/text v0.40.0 h1:Ub2Z6/xjgF1WrYQz2nuITOEegKFtiIy+rieRJ5lHZKs=
-golang.org/x/text v0.41.0/go.mod h1:jvf1O8ajNzZqhSrQBPbutR/EB83Cc0CFrezNQIwbb5M=
+golang.org/x/text v0.40.0/go.mod h1:hpnzDAfGV753zIKo+wk3u1bVKCGPbrnF7+7LBF/UHVY=
 golang.org/x/time v0.15.0 h1:bbrp8t3bGUeFOx08pvsMYRTCVSMk89u4tKbNOZbp88U=
 golang.org/x/time v0.15.0/go.mod h1:Y4YMaQmXwGQZoFaVFk4YpCt4FLQMYKZe9oeV/f4MSno=
-golang.org/x/tools v0.48.0 h1:3+hClM1aLL5mjMKm5ovokw9epgRXPuu2tILgismM6RE=
+golang.org/x/tools v0.47.0 h1:7Kn5x/d1svx/PzryTsqeoZN4TZwqeH5pGWjefhLi/1Q=
-golang.org/x/tools v0.48.0/go.mod h1:08xX0orndb/F7jJxGDicx061tyd5pcMto75YMAXr6lk=
+golang.org/x/tools v0.47.0/go.mod h1:dFHnyTvFWY212G+h7ZY4Vsp/K3U4/7W9TyVaAul8uCA=
 gomodules.xyz/jsonpatch/v2 v2.4.0 h1:Ci3iUJyx9UeRx7CeFN8ARgGbkESwJK+KB9lLcWxY/Zw=
 gomodules.xyz/jsonpatch/v2 v2.4.0/go.mod h1:AH3dM2RI6uoBZxn3LVrfvJ3E0/9dG4cSrbuBJT4moAY=
 gonum.org/v1/gonum v0.17.0 h1:VbpOemQlsSMrYmn7T2OUvQ4dqxQXU+ouZFQsZOx50z4=
@@ -232,8 +236,8 @@ google.golang.org/api v0.292.0 h1:Ewiwo/GTtiaPZSNAZQUcWLh8AYDEoPmIXyJfeoTSMHU=
 google.golang.org/api v0.292.0/go.mod h1:07kjmMnFGm2RQuCza2EZM/5N68G/fVvFb1xKjWqoFA0=
 google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7 h1:XzmzkmB14QhVhgnawEVsOn6OFsnpyxNPRY9QV01dNB0=
 google.golang.org/genproto v0.0.0-20260319201613-d00831a3d3e7/go.mod h1:L43LFes82YgSonw6iTXTxXUX1OlULt4AQtkik4ULL/I=
-google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7 h1:jQ9p21COKWjP3VwuFrNRiiOTMh3mPpN45R7SLrH/HUU=
+google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d h1:FarXi840EJWSHYTN3ERkADbPWjl307+FGrA22KAVjjc=
-google.golang.org/genproto/googleapis/api v0.0.0-20260630182238-925bb5da69e7/go.mod h1:KqHwBx2upmfa1XSi1WuRvC+2VGCLtooKkfmyvRbUmqA=
+google.golang.org/genproto/googleapis/api v0.0.0-20260803160001-6ac0973c030d/go.mod h1:K/+WGbmBY7aNW1HDw1fJnKYo10i0DkAX6pows00dLig=
 google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d h1:IL4hdHzcUv2l/gcg98/Rj3FbtE6axwqslOW8SW0C+S0=
 google.golang.org/genproto/googleapis/rpc v0.0.0-20260803160001-6ac0973c030d/go.mod h1:4Hqkh8ycfw05ld/3BWL7rJOSfebL2Q+DVDeRgYgxUU8=
 google.golang.org/grpc v1.83.0 h1:JeNZEKJFbQxArAMl+hiytHauacDNqJUllNfmIMmpqnQ=

internal/controller/proxy_controller.go

@@ -41,6 +41,7 @@ import (
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/health"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )
 
 // HealthSnapshotter provides the current probe verdict for a proxy. The
@@ -96,9 +97,14 @@ func (r *ProxyReconciler) Reconcile(ctx context.Context, req ctrl.Request) (res
 	}
 	base := p.DeepCopy()
 	defer func() {
+		// Runs inside the root reconcile span (this defer fires before the
+		// tracing.NewReconciler wrapper sees the return), and its error is
+		// folded into err, which that wrapper records.
+		pctx, span := tracing.Start(ctx, "status.patch")
+		defer span.End()
 		// NotFound is expected when this reconcile just removed the last
 		// finalizer and the object is already gone.
-		if perr := r.patchStatusIfChanged(ctx, base, &p); perr != nil && !apierrors.IsNotFound(perr) {
+		if perr := r.patchStatusIfChanged(pctx, base, &p); perr != nil && !apierrors.IsNotFound(perr) {
 			err = errors.Join(err, perr)
 		}
 	}()
@@ -114,6 +120,8 @@ func (r *ProxyReconciler) Reconcile(ctx context.Context, req ctrl.Request) (res
 }
 
 func (r *ProxyReconciler) reconcileManaged(ctx context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.managed")
+	defer span.End()
 	log := logf.FromContext(ctx)
 
 	if controllerutil.AddFinalizer(p, crawlv1alpha1.FinalizerName) {
@@ -224,6 +232,8 @@ func (r *ProxyReconciler) reconcileManaged(ctx context.Context, p *crawlv1alpha1
 // exists" — hence: delete, poll to NotFound, only then advance the hash and
 // let the create branch run.
 func (r *ProxyReconciler) replaceInstance(ctx context.Context, p *crawlv1alpha1.Proxy, prov provider.Provider, hash string) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.replaceInstance")
+	defer span.End()
 	_, err := prov.Get(ctx, p.Status.ProviderID)
 	if provider.Class(err) == provider.ErrNotFound {
 		// Old instance is gone. The Update inside setSpecHash refreshes p
@@ -252,14 +262,22 @@ func (r *ProxyReconciler) replaceInstance(ctx context.Context, p *crawlv1alpha1.
 }
 
 func (r *ProxyReconciler) reconcileDelete(ctx context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
+	ctx, span := tracing.Start(ctx, "reconcile.delete")
+	defer span.End()
 	if !controllerutil.ContainsFinalizer(p, crawlv1alpha1.FinalizerName) {
 		return ctrl.Result{}, nil
 	}
 	if p.Status.ProviderID == "" {
 		// Nothing was ever recorded as created; orphan GC reaps any stray
 		// instance a crashed create might have left behind.
-		controllerutil.RemoveFinalizer(p, crawlv1alpha1.FinalizerName)
+		return r.releaseFinalizer(ctx, p)
-		return ctrl.Result{}, r.Update(ctx, p)
+	}
+	if p.Annotations[crawlv1alpha1.AnnotationSkipCleanup] == "true" {
+		// Checked before the provider lookup so it also releases a Proxy whose
+		// provider is gone from the config. The instance is left running.
+		logf.FromContext(ctx).Info("skip-cleanup annotation set; abandoning the instance",
+			"providerID", p.Status.ProviderID, "provider", p.Spec.Provider)
+		return r.releaseFinalizer(ctx, p)
 	}
 	prov, ok := r.Providers[p.Spec.Provider]
 	if !ok {
@@ -267,11 +285,22 @@ func (r *ProxyReconciler) reconcileDelete(ctx context.Context, p *crawlv1alpha1.
 			"provider %q is not configured; cannot clean up instance %s", p.Spec.Provider, p.Status.ProviderID)
 	}
 	_, err := prov.Get(ctx, p.Status.ProviderID)
-	if provider.Class(err) == provider.ErrNotFound {
+	switch {
-		controllerutil.RemoveFinalizer(p, crawlv1alpha1.FinalizerName)
+	case err == nil:
-		return ctrl.Result{}, r.Update(ctx, p)
+	case provider.Class(err) == provider.ErrNotFound:
-	}
+		return r.releaseFinalizer(ctx, p)
-	if err != nil {
+	case provider.Class(err) == provider.ErrPermanent:
+		// Get will never answer for this instance — a host retired from the
+		// config, a providerID the provider can no longer resolve. Delete is
+		// idempotent and may still finish, so try it instead of polling a Get
+		// that cannot converge, and release the object when it does.
+		if delErr := prov.Delete(ctx, p.Status.ProviderID); delErr != nil {
+			return r.deletionFailure(errors.Join(err, delErr))
+		}
+		logf.FromContext(ctx).Info("instance unreachable but cleanup succeeded; removing the finalizer",
+			"providerID", p.Status.ProviderID, "error", err.Error())
+		return r.releaseFinalizer(ctx, p)
+	default:
 		return r.deletionFailure(err)
 	}
 	if err := prov.Delete(ctx, p.Status.ProviderID); err != nil {
@@ -282,6 +311,11 @@ func (r *ProxyReconciler) reconcileDelete(ctx context.Context, p *crawlv1alpha1.
 	return ctrl.Result{RequeueAfter: r.DeletionPoll}, nil
 }
 
+func (r *ProxyReconciler) releaseFinalizer(ctx context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
+	controllerutil.RemoveFinalizer(p, crawlv1alpha1.FinalizerName)
+	return ctrl.Result{}, r.Update(ctx, p)
+}
+
 func (r *ProxyReconciler) reconcileExternal(_ context.Context, p *crawlv1alpha1.Proxy) (ctrl.Result, error) {
 	if p.Spec.Endpoint == nil {
 		// CEL guarantees an endpoint on any object that went through the API
@@ -409,7 +443,10 @@ func (r *ProxyReconciler) SetupWithManager(mgr ctrl.Manager) error {
 	if r.HealthEvents != nil {
 		b = b.WatchesRawSource(source.Channel(r.HealthEvents, &handler.EnqueueRequestForObject{}))
 	}
-	return b.Complete(r)
+	// Root span per reconcile; sub-reconcilers and the status flush hang
+	// their spans off it. Tests calling r.Reconcile directly bypass the
+	// wrapper and see no-op spans — the global tracer is never set there.
+	return b.Complete(tracing.NewReconciler("Proxy", r))
 }
 
 func (r *ProxyReconciler) applyDefaults() {

internal/controller/reconcile_test.go

@@ -2,6 +2,7 @@ package controller
 
 import (
 	"context"
+	"slices"
 	"testing"
 	"time"
 
@@ -78,6 +79,10 @@ func notFoundErr() error {
 	return provider.Wrap(provider.ErrNotFound, "get", "stub", "some-id", nil)
 }
 
+func permanentErr() error {
+	return provider.Wrap(provider.ErrPermanent, "get", "stub", "some-id", nil)
+}
+
 func testScheme(t *testing.T) *runtime.Scheme {
 	t.Helper()
 	s := runtime.NewScheme()
@@ -125,6 +130,15 @@ func withSpecHashAnnotation(hash string) func(*crawlv1alpha1.Proxy) {
 	}
 }
 
+func withSkipCleanup() func(*crawlv1alpha1.Proxy) {
+	return func(p *crawlv1alpha1.Proxy) {
+		if p.Annotations == nil {
+			p.Annotations = map[string]string{}
+		}
+		p.Annotations[crawlv1alpha1.AnnotationSkipCleanup] = "true"
+	}
+}
+
 func deleting() func(*crawlv1alpha1.Proxy) {
 	return func(p *crawlv1alpha1.Proxy) {
 		now := metav1.Now()
@@ -375,6 +389,59 @@ func TestReconcile_actionTable(t *testing.T) {
 				assertProxyGone(t, r)
 			},
 		},
+		{
+			// A permanent Get (a retired KVM host, a providerID the provider
+			// cannot resolve) used to retry forever with the finalizer on.
+			name:       "deletion with an unreachable instance still deletes and releases",
+			proxy:      managedProxy(deleting(), withProviderID("stub-id-1")),
+			stub:       &stubProvider{getErr: permanentErr()},
+			wantResult: ctrl.Result{},
+			verify: func(t *testing.T, r *ProxyReconciler, stub *stubProvider) {
+				assertProxyGone(t, r)
+				if stub.deleteCalls != 1 {
+					t.Errorf("deleteCalls = %d, want 1 — Delete must be tried when Get cannot answer", stub.deleteCalls)
+				}
+			},
+		},
+		{
+			name:  "deletion keeps the finalizer when cleanup itself fails",
+			proxy: managedProxy(deleting(), withProviderID("stub-id-1")),
+			stub: &stubProvider{
+				getErr:    permanentErr(),
+				deleteErr: provider.Wrap(provider.ErrPermanent, "delete", "stub", "stub-id-1", nil),
+			},
+			wantResult: ctrl.Result{},
+			wantErr:    true,
+			verify: func(t *testing.T, r *ProxyReconciler, _ *stubProvider) {
+				// getProxy fails the test if the object is gone, which is what
+				// finalizer removal would have caused.
+				if p := getProxy(t, r); !slices.Contains(p.Finalizers, crawlv1alpha1.FinalizerName) {
+					t.Error("finalizer removed although cleanup failed; the instance would leak silently")
+				}
+			},
+		},
+		{
+			name:       "skip-cleanup annotation abandons the instance",
+			proxy:      managedProxy(deleting(), withProviderID("stub-id-1"), withSkipCleanup()),
+			stub:       &stubProvider{getInst: &provider.Instance{ID: "stub-id-1", State: provider.StateRunning}},
+			wantResult: ctrl.Result{},
+			verify: func(t *testing.T, r *ProxyReconciler, stub *stubProvider) {
+				assertProxyGone(t, r)
+				if stub.getCalls != 0 || stub.deleteCalls != 0 {
+					t.Errorf("getCalls/deleteCalls = %d/%d, want 0/0 — the provider must not be asked", stub.getCalls, stub.deleteCalls)
+				}
+			},
+		},
+		{
+			name: "skip-cleanup annotation releases a proxy whose provider is gone",
+			proxy: managedProxy(deleting(), withProviderID("stub-id-1"), withSkipCleanup(),
+				func(p *crawlv1alpha1.Proxy) { p.Spec.Provider = "retired" }),
+			stub:       &stubProvider{},
+			wantResult: ctrl.Result{},
+			verify: func(t *testing.T, r *ProxyReconciler, _ *stubProvider) {
+				assertProxyGone(t, r)
+			},
+		},
 		{
 			name:  "deletion deletes the instance and polls",
 			proxy: managedProxy(deleting(), withProviderID("stub-id-1")),

internal/discovery/handlers.go

@@ -11,6 +11,7 @@ import (
 
 	apimeta "k8s.io/apimachinery/pkg/api/meta"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
 
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/lease"
@@ -82,7 +83,10 @@ func (s *Server) handleListProxies(w http.ResponseWriter, r *http.Request) {
 
 	var list crawlv1alpha1.ProxyList
 	if err := s.Reader.List(r.Context(), &list); err != nil {
-		s.log.Error(err, "listing proxies")
+		// The ctx logger is s.log enriched with this request's
+		// traceID/spanID by the tracing middleware (logr sinks can't read
+		// ctx at log time, so per-request values ride on the logger).
+		logf.FromContext(r.Context()).Error(err, "listing proxies")
 		writeError(w, http.StatusInternalServerError, "internal", "listing proxies failed")
 		return
 	}
@@ -138,7 +142,7 @@ func (s *Server) handleAcquireLease(w http.ResponseWriter, r *http.Request) {
 
 	var list crawlv1alpha1.ProxyList
 	if err := s.Reader.List(r.Context(), &list); err != nil {
-		s.log.Error(err, "listing proxies for lease")
+		logf.FromContext(r.Context()).Error(err, "listing proxies for lease")
 		writeError(w, http.StatusInternalServerError, "internal", "listing proxies failed")
 		return
 	}
@@ -231,7 +235,7 @@ func (s *Server) handleReportLease(w http.ResponseWriter, r *http.Request) {
 			writeError(w, http.StatusNotFound, "unknown_lease", "no such lease")
 			return
 		}
-		s.log.Error(err, "reporting lease", "leaseID", r.PathValue("id"))
+		logf.FromContext(r.Context()).Error(err, "reporting lease", "leaseID", r.PathValue("id"))
 		writeError(w, http.StatusInternalServerError, "internal", "report failed")
 		return
 	}

internal/discovery/server.go

@@ -20,6 +20,7 @@ import (
 	logf "sigs.k8s.io/controller-runtime/pkg/log"
 
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/lease"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )
 
 // LeaseStore is what the handlers need from a lease backend. Defined here,
@@ -136,7 +137,9 @@ func (s *Server) Start(ctx context.Context) error {
 }
 
 // handler assembles the mux and the middleware chain, outermost first:
-// recover → request-log → body-size cap → bearer auth.
+// recover → tracing (server span + request logger) → request-log →
+// body-size cap → bearer auth. Everything inside the tracing layer logs via
+// logf.FromContext(r.Context()) and so carries traceID/spanID.
 func (s *Server) handler() http.Handler {
 	mux := http.NewServeMux()
 	mux.HandleFunc("GET /healthz", func(w http.ResponseWriter, _ *http.Request) {
@@ -152,6 +155,7 @@ func (s *Server) handler() http.Handler {
 	h = s.authMiddleware(h)
 	h = maxBytesMiddleware(h)
 	h = s.logMiddleware(h)
+	h = tracing.HTTPMiddleware("discovery", s.log)(h)
 	h = s.recoverMiddleware(h)
 	return h
 }
@@ -188,7 +192,7 @@ func (s *Server) logMiddleware(next http.Handler) http.Handler {
 		rec := &statusRecorder{ResponseWriter: w, status: http.StatusOK}
 		start := time.Now()
 		next.ServeHTTP(rec, r)
-		s.log.Info("request",
+		logf.FromContext(r.Context()).Info("request",
 			"method", r.Method, "path", r.URL.Path,
 			"status", rec.status, "duration", time.Since(start).String())
 	})

internal/gc/gc.go

@@ -12,8 +12,11 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	logf "sigs.k8s.io/controller-runtime/pkg/log"
 
+	"go.opentelemetry.io/otel/attribute"
+
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
 	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )
 
 // Sweeper is the manager Runnable running the sweep loop.
@@ -81,6 +84,8 @@ func (s *Sweeper) Start(ctx context.Context) error {
 // that deletion, and GC racing it would double-delete. A UID becomes
 // orphan-eligible only once the object is fully gone.
 func (s *Sweeper) sweep(ctx context.Context) {
+	ctx, span := tracing.Start(ctx, "gc.sweep")
+	defer span.End()
 	log := logf.FromContext(ctx).WithName("orphan-gc")
 
 	var list crawlv1alpha1.ProxyList
@@ -95,6 +100,7 @@ func (s *Sweeper) sweep(ctx context.Context) {
 		live[string(list.Items[i].UID)] = true
 	}
 
+	deleted := 0
 	for name, prov := range s.Providers {
 		instances, err := prov.ListByTag(ctx)
 		if err != nil {
@@ -119,7 +125,13 @@ func (s *Sweeper) sweep(ctx context.Context) {
 			if err := prov.Delete(ctx, inst.ID); err != nil {
 				log.Error(err, "deleting orphaned instance",
 					"provider", name, "providerID", inst.ID, "uid", inst.UID)
+				continue
 			}
+			deleted++
 		}
 	}
+	span.SetAttributes(
+		attribute.Int("gc.providers", len(s.Providers)),
+		attribute.Int("gc.deleted", deleted),
+	)
 }

internal/health/engine.go

@@ -10,6 +10,9 @@ import (
 	"sync"
 	"time"
 
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
 	apimeta "k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/types"
@@ -18,6 +21,7 @@ import (
 	logf "sigs.k8s.io/controller-runtime/pkg/log"
 
 	crawlv1alpha1 "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/api/v1alpha1"
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
 )
 
 // Snapshot is the engine's current verdict for one proxy, read by the
@@ -99,6 +103,10 @@ type Engine struct {
 	// transition-only by design, so metrics are where high-frequency
 	// signal (true probe recency, every latency sample) lives.
 	Metrics ProbeMetrics
+	// TraceProbes emits one root span per probe (--trace-health-probes).
+	// Off by default: probes run about once per second per proxy and would
+	// dominate trace volume.
+	TraceProbes bool
 
 	probeFn func(context.Context, *url.URL, crawlv1alpha1.HealthCheckSpec, *tls.Config) probeResult
 
@@ -155,8 +163,7 @@ func (e *Engine) Start(ctx context.Context) error {
 				case <-ctx.Done():
 					return
 				case job := <-jobs:
-					res := e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
+					e.record(job, e.runProbe(ctx, job), time.Now())
-					e.record(job, res, time.Now())
 				}
 			}
 		})
@@ -264,6 +271,29 @@ func newState(p *crawlv1alpha1.Proxy, now time.Time, interval time.Duration) *st
 	return st
 }
 
+// runProbe executes one probe, inside its own root span when TraceProbes is
+// on. The span ends before record folds the result (record stays ctx-free),
+// and the probe transport is deliberately uninstrumented — no traceparent
+// must ever leak through a proxy toward external targets.
+func (e *Engine) runProbe(ctx context.Context, job probeJob) probeResult {
+	if !e.TraceProbes {
+		return e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
+	}
+	ctx, span := tracing.Start(ctx, "health.probe",
+		trace.WithSpanKind(trace.SpanKindClient),
+		trace.WithAttributes(attribute.String("proxy", job.key.String())))
+	defer span.End()
+	res := e.probeFn(ctx, job.proxyURL, job.hc, e.ProbeTLSConfig)
+	span.SetAttributes(
+		attribute.Bool("probe.ok", res.ok),
+		attribute.Int64("probe.latency_ms", res.latency.Milliseconds()),
+	)
+	if !res.ok {
+		span.SetStatus(codes.Error, res.err.Error())
+	}
+	return res
+}
+
 // record folds one probe result into the proxy's threshold state and emits
 // an event when the result is status-affecting: a first-ever verdict, a
 // threshold-crossing flip, or a material latency change (beyond

internal/provider/config_kvm.go

@@ -22,10 +22,18 @@ type KVMConfig struct {
 	// DiskSizeGB is the capacity of each VM's overlay disk. Default 10. The
 	// guest's cloud-init growpart expands the root filesystem into it.
 	DiskSizeGB int64 `json:"diskSizeGb,omitempty"`
-	// VendorData is cloud-init vendor-data placed on every seed next to the
+	// VendorData is optional cloud-init vendor-data placed on every seed next
-	// Proxy's own user-data. Default: installs and starts qemu-guest-agent so
+	// to the Proxy's own user-data. Note that cloud-init drops any top-level
-	// the provider can read the VM's IP even before it shows up in ARP.
+	// key of a vendor-data cloud-config that the user-data also defines.
+	// When InstallGuestAgent is on, this document and the agent script are
+	// carried as separate parts of a MIME multipart vendor-data.
 	VendorData string `json:"vendorData,omitempty"`
+	// InstallGuestAgent adds a vendor-data script that installs and starts
+	// qemu-guest-agent, which is how the provider learns a VM's address
+	// before the host's ARP table has seen traffic from it. Default true.
+	// Turn it off for images that already ship the agent, or that cannot
+	// reach a package mirror; discovery then depends on ARP alone.
+	InstallGuestAgent *bool `json:"installGuestAgent,omitempty"`
 	// Images are named base images; placement.image names a key here (or is
 	// an http(s) URL directly). The provider downloads each image into a
 	// host's storage pool on first use and caches it there.
@@ -47,6 +55,11 @@ type KVMImage struct {
 	SHA256 string `json:"sha256,omitempty"`
 	// Format is the image's disk format, "qcow2" (default) or "raw".
 	Format string `json:"format,omitempty"`
+	// Firmware is how VMs from this image boot: "uefi" (default; OVMF with
+	// secure boot off) or "bios" (SeaBIOS) for images with no EFI system
+	// partition. Current Debian, Ubuntu, Fedora and Rocky cloud images all
+	// boot UEFI, and Debian 13's BIOS path was found not to boot at all.
+	Firmware string `json:"firmware,omitempty"`
 }
 
 // KVMMachineType is a VM size profile.
@@ -75,8 +88,31 @@ type KVMHost struct {
 	Bridge string `json:"bridge"`
 }
 
+// Accepted KVMImage.Format and KVMImage.Firmware values.
+const (
+	KVMFormatQcow2  = "qcow2"
+	KVMFormatRaw    = "raw"
+	KVMFirmwareUEFI = "uefi"
+	KVMFirmwareBIOS = "bios"
+)
+
+// IsHTTPURL reports whether s is an absolute http(s) URL with a host, the
+// only kind of image source the kvm provider can fetch.
+func IsHTTPURL(s string) bool {
+	u, err := url.Parse(s)
+	return err == nil && (u.Scheme == "http" || u.Scheme == "https") && u.Host != ""
+}
+
 var sha256Hex = regexp.MustCompile(`^[0-9a-fA-F]{64}$`)
 
+// kvmIdentifier constrains the config names that are pasted into
+// identifiers elsewhere: a host name goes into the providerID
+// hosts/<name>/domains/<vm>, which is split on "/" to parse, and an image
+// key becomes the file name of the cached base volume. A slash in either
+// produces an ID or a path that never resolves again, so the VM leaks with
+// nothing able to address it.
+var kvmIdentifier = regexp.MustCompile(`^[A-Za-z0-9][A-Za-z0-9_.-]*$`)
+
 func validateKVM(prefix string, c *KVMConfig) error {
 	if c == nil {
 		return fmt.Errorf("%s: kvm block is required", prefix)
@@ -92,15 +128,21 @@ func validateKVM(prefix string, c *KVMConfig) error {
 	}
 	for name, img := range c.Images {
 		p := fmt.Sprintf("%s: kvm.images[%q]", prefix, name)
-		u, err := url.Parse(img.URL)
+		if !kvmIdentifier.MatchString(name) {
-		if err != nil || (u.Scheme != "http" && u.Scheme != "https") || u.Host == "" {
+			return fmt.Errorf("%s: key must be letters, digits, dots, dashes or underscores"+
+				" — it becomes the cached volume name base-<key>.<format>", p)
+		}
+		if !IsHTTPURL(img.URL) {
 			return fmt.Errorf("%s.url must be an http(s) URL (got %q)", p, img.URL)
 		}
 		if img.SHA256 != "" && !sha256Hex.MatchString(img.SHA256) {
 			return fmt.Errorf("%s.sha256 must be 64 hex characters", p)
 		}
-		if img.Format != "" && img.Format != "qcow2" && img.Format != "raw" {
+		if img.Format != "" && img.Format != KVMFormatQcow2 && img.Format != KVMFormatRaw {
-			return fmt.Errorf("%s.format must be qcow2 or raw (got %q)", p, img.Format)
+			return fmt.Errorf("%s.format must be %s or %s (got %q)", p, KVMFormatQcow2, KVMFormatRaw, img.Format)
+		}
+		if img.Firmware != "" && img.Firmware != KVMFirmwareUEFI && img.Firmware != KVMFirmwareBIOS {
+			return fmt.Errorf("%s.firmware must be %s or %s (got %q)", p, KVMFirmwareUEFI, KVMFirmwareBIOS, img.Firmware)
 		}
 	}
 	if len(c.MachineTypes) == 0 {
@@ -120,6 +162,10 @@ func validateKVM(prefix string, c *KVMConfig) error {
 		if h.Name == "" {
 			return fmt.Errorf("%s: name is required", p)
 		}
+		if !kvmIdentifier.MatchString(h.Name) {
+			return fmt.Errorf("%s: name %q must be letters, digits, dots, dashes or underscores"+
+				" — it becomes part of the providerID hosts/<name>/domains/<vm>", p, h.Name)
+		}
 		if seen[h.Name] {
 			return fmt.Errorf("%s: duplicate host name %q", p, h.Name)
 		}

internal/provider/config_kvm_test.go

@@ -129,6 +129,19 @@ hosts:
 			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nmachineTypes:\n  small: {vcpus: 1, memoryMiB: 1024}\nhosts:\n  - {name: nas1, address: a:22, user: virt, bridge: br0}\n  - {name: nas1, address: b:22, user: virt, bridge: br0}\n"),
 			wantErrSub: `duplicate host name "nas1"`,
 		},
+		{
+			// A slash would produce hosts/dc1/rack2/domains/<vm>, which
+			// parseProviderID can never split back, so the VM would be
+			// unreachable for Get, Delete and GC alike.
+			name:       "host name with a slash",
+			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nmachineTypes:\n  small: {vcpus: 1, memoryMiB: 1024}\nhosts:\n  - {name: dc1/rack2, address: a:22, user: virt, bridge: br0}\n"),
+			wantErrSub: `name "dc1/rack2" must be letters, digits, dots, dashes or underscores`,
+		},
+		{
+			name:       "image key with a slash",
+			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nimages:\n  ../etc/d: {url: https://x/y.qcow2}\n" + hostsAndTypes),
+			wantErrSub: `images["../etc/d"]: key must be letters, digits, dots, dashes or underscores`,
+		},
 		{
 			name:       "host missing address",
 			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nmachineTypes:\n  small: {vcpus: 1, memoryMiB: 1024}\nhosts:\n  - {name: nas1, user: virt, bridge: br0}\n"),
@@ -154,6 +167,11 @@ hosts:
 			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nimages:\n  d: {url: https://x/y.qcow2, sha256: abc}\n" + hostsAndTypes),
 			wantErrSub: `images["d"].sha256 must be 64 hex characters`,
 		},
+		{
+			name:       "image with unknown firmware",
+			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nimages:\n  d: {url: https://x/y.qcow2, firmware: coreboot}\n" + hostsAndTypes),
+			wantErrSub: `images["d"].firmware must be uefi or bios`,
+		},
 		{
 			name:       "image with unknown format",
 			yaml:       minimal("sshKeyFile: /key\nknownHostsFile: /kh\nimages:\n  d: {url: https://x/y.vmdk, format: vmdk}\n" + hostsAndTypes),

internal/provider/gcp/wirelog.go

@@ -6,6 +6,7 @@ import (
 	"log/slog"
 
 	"github.com/go-logr/logr"
+	"go.opentelemetry.io/otel/trace"
 )
 
 // wireLogMaxFieldBytes is the elision threshold for string fields in wire
@@ -47,6 +48,15 @@ func (h *wireFilterHandler) Handle(ctx context.Context, rec slog.Record) error {
 	if rec.Level <= slog.LevelDebug && rec.Message != "api request" && rec.Message != "api response" {
 		return nil
 	}
+	// The SDK logs with the request ctx, so wire records can carry the
+	// surrounding provider span — the one place slog's ctx-aware handlers
+	// beat logr, and the same keys the logr enrichment uses.
+	if sc := trace.SpanContextFromContext(ctx); sc.IsValid() {
+		rec = rec.Clone()
+		rec.AddAttrs(
+			slog.String("traceID", sc.TraceID().String()),
+			slog.String("spanID", sc.SpanID().String()))
+	}
 	if h.fullPayloads {
 		return h.inner.Handle(ctx, rec)
 	}

internal/provider/gcp/wirelog_test.go

@@ -0,0 +1,50 @@
+package gcp
+
+import (
+	"context"
+	"strings"
+	"testing"
+
+	"github.com/go-logr/logr/funcr"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+)
+
+func TestWireFilterHandler_addsTraceContext(t *testing.T) {
+	t.Parallel()
+
+	var lines []string
+	base := funcr.New(func(prefix, args string) {
+		lines = append(lines, prefix+" "+args)
+	}, funcr.Options{Verbosity: 5})
+	log := wireLogger(base, WireLogOptions{})
+
+	tp := sdktrace.NewTracerProvider()
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+	ctx, span := tp.Tracer("test").Start(context.Background(), "provider.create")
+	defer span.End()
+
+	log.DebugContext(ctx, "api request", "url", "https://compute.googleapis.com/x")
+	if len(lines) != 1 {
+		t.Fatalf("got %d lines, want 1: %v", len(lines), lines)
+	}
+	traceID := span.SpanContext().TraceID().String()
+	if !strings.Contains(lines[0], "traceID") || !strings.Contains(lines[0], traceID) {
+		t.Errorf("wire record missing trace context %s: %s", traceID, lines[0])
+	}
+
+	// The security filter must still win: non-wire Debug records are
+	// dropped even when a span is present.
+	log.DebugContext(ctx, "token exchange", "assertion", "secret-jwt")
+	if len(lines) != 1 {
+		t.Fatalf("filtered record leaked: %v", lines[1:])
+	}
+
+	// No span in ctx: record passes through without trace keys.
+	log.DebugContext(context.Background(), "api response", "status", 200)
+	if len(lines) != 2 {
+		t.Fatalf("got %d lines, want 2", len(lines))
+	}
+	if strings.Contains(lines[1], "traceID") {
+		t.Errorf("spanless record must not carry traceID: %s", lines[1])
+	}
+}

internal/provider/kubernetes/kubernetes.go

@@ -14,6 +14,7 @@ import (
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/types"
 	"k8s.io/client-go/tools/cache"
+	"k8s.io/client-go/transport"
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 
@@ -39,11 +40,22 @@ type Provider struct {
 
 // New builds a kubernetes Provider from its config block. Satisfies
 // registry.Constructor.
-func New(_ context.Context, cfg provider.ProviderConfig) (provider.Provider, error) {
+func New(ctx context.Context, cfg provider.ProviderConfig) (provider.Provider, error) {
+	return NewWithTransportWrapper(ctx, cfg, nil)
+}
+
+// NewWithTransportWrapper is New with an optional transport wrapper applied
+// to the provider's own rest.Config (this client is built independently of
+// the manager's, so the composition root must wrap it separately for
+// tracing). A nil wrapper means a plain client.
+func NewWithTransportWrapper(_ context.Context, cfg provider.ProviderConfig, wrap transport.WrapperFunc) (provider.Provider, error) {
 	restCfg, err := ctrl.GetConfig()
 	if err != nil {
 		return nil, fmt.Errorf("kubernetes provider %q: loading kubeconfig: %w", cfg.Name, err)
 	}
+	if wrap != nil {
+		restCfg.Wrap(wrap)
+	}
 	scheme := runtime.NewScheme()
 	if err := corev1.AddToScheme(scheme); err != nil {
 		return nil, fmt.Errorf("kubernetes provider %q: %w", cfg.Name, err)

internal/provider/kvm/conn.go

@@ -2,14 +2,17 @@ package kvm
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"io"
+	"io/fs"
 	"net"
 	"os"
 	"sync"
 	"time"
 
 	libvirt "github.com/digitalocean/go-libvirt"
+	"github.com/go-logr/logr"
 	"golang.org/x/crypto/ssh"
 	"golang.org/x/crypto/ssh/knownhosts"
 
@@ -95,7 +98,7 @@ func (p *hostPool) entry(name string) *hostEntry {
 	return e
 }
 
-func (p *hostPool) get(ctx context.Context, host provider.KVMHost) (*hostClient, error) {
+func (p *hostPool) get(ctx context.Context, log logr.Logger, host provider.KVMHost) (*hostClient, error) {
 	e := p.entry(host.Name)
 	e.mu.Lock()
 	defer e.mu.Unlock()
@@ -103,13 +106,17 @@ func (p *hostPool) get(ctx context.Context, host provider.KVMHost) (*hostClient,
 		if e.client.alive() {
 			return e.client, nil
 		}
+		log.V(1).Info("libvirt connection lost, redialing", "address", host.Address)
 		e.client.close()
 		e.client = nil
 	}
+	start := time.Now()
 	c, err := p.dial(ctx, host)
 	if err != nil {
+		log.V(1).Info("libvirt host dial failed", "address", host.Address, "duration", time.Since(start).Round(time.Millisecond), "error", err.Error())
 		return nil, fmt.Errorf("connecting to host %s (%s): %w", host.Name, host.Address, err)
 	}
+	log.V(1).Info("libvirt host connected", "address", host.Address, "duration", time.Since(start).Round(time.Millisecond))
 	e.client = c
 	return c, nil
 }
@@ -129,16 +136,29 @@ func (p *hostPool) drop(host string, c *hostClient) {
 // call runs fn against host's connection. go-libvirt RPCs take no context
 // and block until the daemon answers, so when ctx ends first the connection
 // is closed — which unblocks fn with an error — and ctx.Err() is returned.
-// A transport error (anything that is not a libvirt.Error) also drops the
+// A transport error also drops the cached connection so the next call
-// cached connection so the next call redials instead of reusing a dead
+// redials instead of reusing a dead link. "Transport error" means anything
-// link.
+// that is neither a libvirt.Error nor an error fn already classified with a
-func (p *hostPool) call(ctx context.Context, host provider.KVMHost, fn func(api libvirtAPI) error) error {
+// provider sentinel (a failed seed build, a bad placement): those are local
-	c, err := p.get(ctx, host)
+// verdicts, not evidence about the link. When log has V(1) enabled, every
+// RPC fn makes is traced through it (see tracingAPI), as are connection
+// events.
+func (p *hostPool) call(ctx context.Context, log logr.Logger, host provider.KVMHost, fn func(api libvirtAPI) error) error {
+	log = log.WithName("libvirt")
+	c, err := p.get(ctx, log, host)
 	if err != nil {
 		return err
 	}
-	err = awaitOrCancel(ctx, func() error { return fn(c.api) }, func() { p.drop(host.Name, c) })
+	api := c.api
-	if err != nil && !isLibvirtError(err) {
+	if log.V(1).Enabled() {
+		api = &tracingAPI{inner: c.api, log: log}
+	}
+	err = awaitOrCancel(ctx, func() error { return fn(api) }, func() {
+		log.V(1).Info("libvirt connection dropped", "reason", "context cancelled", "error", ctx.Err().Error())
+		p.drop(host.Name, c)
+	})
+	if err != nil && !isLibvirtError(err) && !isClassified(err) && !errors.Is(err, ctx.Err()) {
+		log.V(1).Info("libvirt connection dropped", "reason", "transport error", "error", err.Error())
 		p.drop(host.Name, c)
 	}
 	return err
@@ -161,14 +181,17 @@ func awaitOrCancel(ctx context.Context, fn func() error, abort func()) error {
 }
 
 // sshAuth holds the pieces of the SSH client config shared by every host:
-// the private key and the host-key policy, both loaded once at startup so a
+// the private key and the host-key policy. Both are loaded on the first
-// missing or unreadable file fails the operator fast rather than on the
+// connection rather than at startup — see lazySSH.
-// first Create.
 type sshAuth struct {
 	signer  ssh.Signer
 	hostKey ssh.HostKeyCallback
 }
 
+// newSSHAuth loads the key material. A file that is not there yet stays
+// unclassified, so the provider treats it as transient and heals when the
+// Secret appears; content that will never parse is permanent, since
+// retrying cannot fix it.
 func newSSHAuth(cfg provider.KVMConfig) (*sshAuth, error) {
 	key, err := os.ReadFile(cfg.SSHKeyFile)
 	if err != nil {
@@ -176,34 +199,79 @@ func newSSHAuth(cfg provider.KVMConfig) (*sshAuth, error) {
 	}
 	signer, err := ssh.ParsePrivateKey(key)
 	if err != nil {
-		return nil, fmt.Errorf("parsing kvm.sshKeyFile: %w", err)
+		return nil, fmt.Errorf("%w: parsing kvm.sshKeyFile: %v", provider.ErrPermanent, err)
 	}
 	hostKey := ssh.InsecureIgnoreHostKey() //nolint:gosec // opt-in via config, documented as insecure
 	if !cfg.InsecureIgnoreHostKey {
 		hostKey, err = knownhosts.New(cfg.KnownHostsFile)
-		if err != nil {
+		if errors.Is(err, fs.ErrNotExist) {
 			return nil, fmt.Errorf("loading kvm.knownHostsFile: %w", err)
 		}
+		if err != nil {
+			return nil, fmt.Errorf("%w: loading kvm.knownHostsFile: %v", provider.ErrPermanent, err)
+		}
 	}
 	return &sshAuth{signer: signer, hostKey: hostKey}, nil
 }
 
-// dialer returns the production hostDialer: SSH to the host, forward its
+// lazySSH defers loading the SSH material until it is first needed and
-// libvirt unix socket through the connection, and open a libvirt session
+// caches it once it works. The kvm-ssh Secret is an optional mount: the
-// over that.
+// manager has to start without it and keep every other provider running,
-func (a *sshAuth) dialer() hostDialer {
+// and a Secret created afterwards has to heal the KVM proxies on the next
-	return func(ctx context.Context, host provider.KVMHost) (*hostClient, error) {
+// reconcile rather than needing a restart.
-		client, err := a.dialSSH(ctx, host)
+type lazySSH struct {
-		if err != nil {
+	cfg provider.KVMConfig
-			return nil, err
+
-		}
+	mu   sync.Mutex
-		hc, err := connectLibvirt(ctx, client, host.Socket)
+	auth *sshAuth
-		if err != nil {
+}
-			client.Close()
+
-			return nil, err
+// newLazySSH keeps only the SSH fields of cfg, since the loader lives as
-		}
+// long as the Provider.
-		return hc, nil
+func newLazySSH(cfg provider.KVMConfig) *lazySSH {
+	return &lazySSH{cfg: provider.KVMConfig{
+		SSHKeyFile:            cfg.SSHKeyFile,
+		KnownHostsFile:        cfg.KnownHostsFile,
+		InsecureIgnoreHostKey: cfg.InsecureIgnoreHostKey,
+	}}
+}
+
+func (l *lazySSH) load() (*sshAuth, error) {
+	l.mu.Lock()
+	defer l.mu.Unlock()
+	if l.auth != nil {
+		return l.auth, nil
 	}
+	auth, err := newSSHAuth(l.cfg)
+	if err != nil {
+		return nil, err
+	}
+	l.auth = auth
+	return auth, nil
+}
+
+// dial is the production hostDialer.
+func (l *lazySSH) dial(ctx context.Context, host provider.KVMHost) (*hostClient, error) {
+	a, err := l.load()
+	if err != nil {
+		return nil, err
+	}
+	return a.dial(ctx, host)
+}
+
+// dial SSHes to the host, forwards its libvirt unix socket through the
+// connection, and opens a libvirt session over that.
+func (a *sshAuth) dial(ctx context.Context, host provider.KVMHost) (*hostClient, error) {
+	client, err := a.dialSSH(ctx, host)
+	if err != nil {
+		return nil, err
+	}
+	hc, err := connectLibvirt(ctx, client, host.Socket)
+	if err != nil {
+		client.Close()
+		return nil, err
+	}
+	return hc, nil
 }
 
 // dialSSH establishes the SSH connection. The handshake is bounded by ctx's

internal/provider/kvm/conn_test.go

@@ -7,6 +7,7 @@ import (
 	"crypto/rand"
 	"encoding/pem"
 	"errors"
+	"fmt"
 	"io"
 	"net"
 	"os"
@@ -18,6 +19,7 @@ import (
 	"time"
 
 	libvirt "github.com/digitalocean/go-libvirt"
+	"github.com/go-logr/logr"
 	"golang.org/x/crypto/ssh"
 	"golang.org/x/crypto/ssh/knownhosts"
 
@@ -43,6 +45,8 @@ type fakeDialer struct {
 	err     error
 	delay   time.Duration
 	clients []*fakeClient
+	// api is what the dialled client exposes; nil for pool-only tests.
+	api libvirtAPI
 }
 
 func (d *fakeDialer) dial(ctx context.Context, _ provider.KVMHost) (*hostClient, error) {
@@ -61,7 +65,7 @@ func (d *fakeDialer) dial(ctx context.Context, _ provider.KVMHost) (*hostClient,
 	}
 	fc := &fakeClient{done: make(chan struct{})}
 	d.clients = append(d.clients, fc)
-	return &hostClient{api: nil, done: fc.done, close: fc.close}, nil
+	return &hostClient{api: d.api, done: fc.done, close: fc.close}, nil
 }
 
 func (d *fakeDialer) dialCount() int {
@@ -72,6 +76,8 @@ func (d *fakeDialer) dialCount() int {
 
 var testHost = provider.KVMHost{Name: "nas1", Address: "nas1:22", User: "virt", Socket: defaultSocket, Pool: "default", Bridge: "br0"}
 
+var discard = logr.Discard()
+
 func noop(libvirtAPI) error { return nil }
 
 func TestHostPool_call_reusesConnection(t *testing.T) {
@@ -79,7 +85,7 @@ func TestHostPool_call_reusesConnection(t *testing.T) {
 	d := &fakeDialer{}
 	p := newHostPool(d.dial)
 	for range 3 {
-		if err := p.call(context.Background(), testHost, noop); err != nil {
+		if err := p.call(context.Background(), discard, testHost, noop); err != nil {
 			t.Fatalf("call() error = %v", err)
 		}
 	}
@@ -92,11 +98,11 @@ func TestHostPool_call_redialsAfterDisconnect(t *testing.T) {
 	t.Parallel()
 	d := &fakeDialer{}
 	p := newHostPool(d.dial)
-	if err := p.call(context.Background(), testHost, noop); err != nil {
+	if err := p.call(context.Background(), discard, testHost, noop); err != nil {
 		t.Fatalf("call() error = %v", err)
 	}
 	d.clients[0].close()
-	if err := p.call(context.Background(), testHost, noop); err != nil {
+	if err := p.call(context.Background(), discard, testHost, noop); err != nil {
 		t.Fatalf("second call() error = %v", err)
 	}
 	if d.dialCount() != 2 {
@@ -104,41 +110,48 @@ func TestHostPool_call_redialsAfterDisconnect(t *testing.T) {
 	}
 }
 
-func TestHostPool_call_transportErrorDropsConnection(t *testing.T) {
+// Only a transport error is evidence about the link. A daemon-reported
+// libvirt error, or a verdict fn reached locally, must not cost the
+// connection.
+func TestHostPool_call_dropsConnectionOnlyOnTransportError(t *testing.T) {
 	t.Parallel()
-	d := &fakeDialer{}
+	tests := []struct {
-	p := newHostPool(d.dial)
+		name        string
-	err := p.call(context.Background(), testHost, func(libvirtAPI) error { return io.ErrUnexpectedEOF })
+		err         error
-	if !errors.Is(err, io.ErrUnexpectedEOF) {
+		wantDropped bool
-		t.Fatalf("call() error = %v, want the transport error passed through", err)
+	}{
+		{"transport error", io.ErrUnexpectedEOF, true},
+		{"libvirt error", lvErr(libvirt.ErrNoDomain), false},
+		{"locally classified error", fmt.Errorf("%w: creating iso writer: read-only file system", provider.ErrPermanent), false},
 	}
-	if !d.clients[0].closed.Load() {
+	for _, tc := range tests {
-		t.Error("connection not closed after a transport error")
+		t.Run(tc.name, func(t *testing.T) {
-	}
+			t.Parallel()
-	if err := p.call(context.Background(), testHost, noop); err != nil {
+			d := &fakeDialer{}
-		t.Fatalf("call() after transport error = %v", err)
+			p := newHostPool(d.dial)
-	}
+			log, snapshot := captureLogger(1)
-	if d.dialCount() != 2 {
+			err := p.call(context.Background(), log, testHost, func(libvirtAPI) error { return tc.err })
-		t.Errorf("dials = %d, want 2", d.dialCount())
+			if !errors.Is(err, tc.err) {
-	}
+				t.Fatalf("call() error = %v, want %v passed through", err, tc.err)
-}
+			}
-
+			if got := d.clients[0].closed.Load(); got != tc.wantDropped {
-func TestHostPool_call_libvirtErrorKeepsConnection(t *testing.T) {
+				t.Errorf("connection closed = %v, want %v", got, tc.wantDropped)
-	t.Parallel()
+			}
-	d := &fakeDialer{}
+			joined := strings.Join(snapshot(), "\n")
-	p := newHostPool(d.dial)
+			if logged := strings.Contains(joined, `"msg"="libvirt connection dropped"`) && strings.Contains(joined, `"reason"="transport error"`); logged != tc.wantDropped {
-	err := p.call(context.Background(), testHost, func(libvirtAPI) error { return lvErr(libvirt.ErrNoDomain) })
+				t.Errorf("transport drop logged = %v, want %v:\n%s", logged, tc.wantDropped, joined)
-	if !hasCode(err, libvirt.ErrNoDomain) {
+			}
-		t.Fatalf("call() error = %v, want the libvirt error passed through", err)
+			if err := p.call(context.Background(), discard, testHost, noop); err != nil {
-	}
+				t.Fatalf("next call() error = %v", err)
-	if err := p.call(context.Background(), testHost, noop); err != nil {
+			}
-		t.Fatalf("call() error = %v", err)
+			wantDials := 1
-	}
+			if tc.wantDropped {
-	if d.dialCount() != 1 {
+				wantDials = 2
-		t.Errorf("dials = %d, want 1: a daemon-reported error must not cost the connection", d.dialCount())
+			}
-	}
+			if d.dialCount() != wantDials {
-	if d.clients[0].closed.Load() {
+				t.Errorf("dials = %d, want %d", d.dialCount(), wantDials)
-		t.Error("connection closed after a libvirt error")
+			}
+		})
 	}
 }
 
@@ -146,7 +159,7 @@ func TestHostPool_call_dialErrorPropagates(t *testing.T) {
 	t.Parallel()
 	d := &fakeDialer{err: errors.New("ssh: handshake failed")}
 	p := newHostPool(d.dial)
-	err := p.call(context.Background(), testHost, noop)
+	err := p.call(context.Background(), discard, testHost, noop)
 	if err == nil || !strings.Contains(err.Error(), "nas1") || !strings.Contains(err.Error(), "handshake failed") {
 		t.Errorf("call() error = %v, want the dial error naming the host", err)
 	}
@@ -162,7 +175,7 @@ func TestHostPool_call_cancelAbandonsBlockedCall(t *testing.T) {
 		time.Sleep(20 * time.Millisecond)
 		cancel()
 	}()
-	err := p.call(ctx, testHost, func(libvirtAPI) error {
+	err := p.call(ctx, discard, testHost, func(libvirtAPI) error {
 		// Simulates an RPC stuck on a hung hypervisor: it only returns once
 		// the pool closes the connection out from under it.
 		<-d.clients[0].done
@@ -177,7 +190,7 @@ func TestHostPool_call_cancelAbandonsBlockedCall(t *testing.T) {
 	case <-time.After(time.Second):
 		t.Fatal("blocked call was not released by closing the connection")
 	}
-	if err := p.call(context.Background(), testHost, noop); err != nil {
+	if err := p.call(context.Background(), discard, testHost, noop); err != nil {
 		t.Fatalf("call() after cancel = %v", err)
 	}
 	if d.dialCount() != 2 {
@@ -192,7 +205,7 @@ func TestHostPool_call_concurrentCallersShareOneDial(t *testing.T) {
 	var wg sync.WaitGroup
 	for range 8 {
 		wg.Go(func() {
-			if err := p.call(context.Background(), testHost, noop); err != nil {
+			if err := p.call(context.Background(), discard, testHost, noop); err != nil {
 				t.Errorf("call() error = %v", err)
 			}
 		})
@@ -210,7 +223,7 @@ func TestHostPool_call_hostsAreIndependent(t *testing.T) {
 	other := testHost
 	other.Name = "lab2"
 	for _, h := range []provider.KVMHost{testHost, other, testHost, other} {
-		if err := p.call(context.Background(), h, noop); err != nil {
+		if err := p.call(context.Background(), discard, h, noop); err != nil {
 			t.Fatalf("call(%s) error = %v", h.Name, err)
 		}
 	}
@@ -382,13 +395,19 @@ func newSSHFixture(t *testing.T, answerGlobalRequests bool) *sshFixture {
 	}
 }
 
-func TestSSHAuth_dialSSH_forwardsUnixSocket(t *testing.T) {
+func mustSSHAuth(t *testing.T, cfg provider.KVMConfig) *sshAuth {
-	t.Parallel()
+	t.Helper()
-	f := newSSHFixture(t, true)
+	auth, err := newSSHAuth(cfg)
-	auth, err := newSSHAuth(f.cfg)
 	if err != nil {
 		t.Fatalf("newSSHAuth() error = %v", err)
 	}
+	return auth
+}
+
+func TestSSHAuth_dialSSH_forwardsUnixSocket(t *testing.T) {
+	t.Parallel()
+	f := newSSHFixture(t, true)
+	auth := mustSSHAuth(t, f.cfg)
 	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
 	defer cancel()
 	client, err := auth.dialSSH(ctx, f.host)
@@ -422,10 +441,7 @@ func TestSSHAuth_dialSSH_rejectsUnknownHostKey(t *testing.T) {
 	if err := os.WriteFile(f.cfg.KnownHostsFile, []byte(line+"\n"), 0o600); err != nil {
 		t.Fatal(err)
 	}
-	auth, err := newSSHAuth(f.cfg)
+	auth := mustSSHAuth(t, f.cfg)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
 	client, err := auth.dialSSH(context.Background(), f.host)
 	if err == nil {
 		client.Close()
@@ -442,11 +458,7 @@ func TestSSHAuth_dialSSH_insecureIgnoreHostKey(t *testing.T) {
 	f := newSSHFixture(t, true)
 	f.cfg.KnownHostsFile = ""
 	f.cfg.InsecureIgnoreHostKey = true
-	auth, err := newSSHAuth(f.cfg)
+	client, err := mustSSHAuth(t, f.cfg).dialSSH(context.Background(), f.host)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
-	client, err := auth.dialSSH(context.Background(), f.host)
 	if err != nil {
 		t.Fatalf("dialSSH() error = %v", err)
 	}
@@ -460,11 +472,7 @@ func TestSSHAuth_dialSSH_rejectsWrongClientKey(t *testing.T) {
 	if err := os.WriteFile(f.keyFile, otherPEM, 0o600); err != nil {
 		t.Fatal(err)
 	}
-	auth, err := newSSHAuth(f.cfg)
+	client, err := mustSSHAuth(t, f.cfg).dialSSH(context.Background(), f.host)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
-	client, err := auth.dialSSH(context.Background(), f.host)
 	if err == nil {
 		client.Close()
 		t.Fatal("dialSSH() succeeded with a key the server does not know")
@@ -477,13 +485,9 @@ func TestSSHAuth_dialSSH_rejectsWrongClientKey(t *testing.T) {
 func TestSSHAuth_dialSSH_cancelledContext(t *testing.T) {
 	t.Parallel()
 	f := newSSHFixture(t, true)
-	auth, err := newSSHAuth(f.cfg)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
 	ctx, cancel := context.WithCancel(context.Background())
 	cancel()
-	if client, err := auth.dialSSH(ctx, f.host); err == nil {
+	if client, err := mustSSHAuth(t, f.cfg).dialSSH(ctx, f.host); err == nil {
 		client.Close()
 		t.Fatal("dialSSH() succeeded with an already-cancelled context")
 	}
@@ -519,14 +523,101 @@ func TestNewSSHAuth_missingFiles(t *testing.T) {
 	}
 }
 
+// The kvm-ssh Secret is an optional mount, so the provider has to be
+// constructible without it and has to start working once it appears — the
+// alternative was a constructor error that crash-looped the whole manager.
+func TestLazySSH_load_healsWhenTheKeyAppears(t *testing.T) {
+	t.Parallel()
+	f := newSSHFixture(t, true)
+	keyPEM, err := os.ReadFile(f.keyFile)
+	if err != nil {
+		t.Fatal(err)
+	}
+	if err := os.Remove(f.keyFile); err != nil {
+		t.Fatal(err)
+	}
+	auth := newLazySSH(f.cfg).load
+
+	if _, err := auth(); err == nil {
+		t.Fatal("loading with no key file succeeded, want an error")
+	} else if class := classify(err); class != provider.ErrTransient {
+		t.Errorf("class = %v, want ErrTransient so the proxy retries once the Secret lands", class)
+	}
+	if err := os.WriteFile(f.keyFile, keyPEM, 0o600); err != nil {
+		t.Fatal(err)
+	}
+	loaded, err := auth()
+	if err != nil {
+		t.Fatalf("loading after the key appeared: %v", err)
+	}
+	// Cached from here on: the file may vanish again (a Secret rotated out)
+	// without breaking connections that already work.
+	if err := os.Remove(f.keyFile); err != nil {
+		t.Fatal(err)
+	}
+	if again, err := auth(); err != nil || again != loaded {
+		t.Errorf("auth() = %v, %v; want the cached value reused", again, err)
+	}
+}
+
+func TestLazySSH_load_unparseableKeyIsPermanent(t *testing.T) {
+	t.Parallel()
+	f := newSSHFixture(t, true)
+	if err := os.WriteFile(f.keyFile, []byte("not a key"), 0o600); err != nil {
+		t.Fatal(err)
+	}
+	_, err := newLazySSH(f.cfg).load()
+	if classify(err) != provider.ErrPermanent {
+		t.Errorf("class = %v, want ErrPermanent: retrying cannot fix a key that does not parse", classify(err))
+	}
+}
+
+// The dialer must authenticate with the material the lazy loader produced,
+// not a stale or empty one. The echo socket is not a libvirt server, so the
+// call gets as far as the libvirt handshake and no further; what matters is
+// that it is past SSH by then.
+func TestLazySSH_dial_authenticatesOverSSH(t *testing.T) {
+	t.Parallel()
+	f := newSSHFixture(t, true)
+	ctx, cancel := context.WithTimeout(context.Background(), 5*time.Second)
+	defer cancel()
+
+	_, err := newLazySSH(f.cfg).dial(ctx, f.host)
+	if err == nil {
+		t.Fatal("dial to an echo socket succeeded, want a libvirt handshake error")
+	}
+	if strings.Contains(err.Error(), "sshKeyFile") || strings.Contains(err.Error(), "ssh handshake") {
+		t.Errorf("dial failed before libvirt: %v", err)
+	}
+	if paths := f.server.requestedPaths(); len(paths) != 1 || paths[0] != f.host.Socket {
+		t.Errorf("server saw forward requests %v, want [%s]", paths, f.host.Socket)
+	}
+}
+
+// New must not fail on missing key material, or one misconfigured provider
+// aborts registry.Build and the manager exits before any controller starts.
+func TestNew_missingSSHMaterialStillBuilds(t *testing.T) {
+	t.Parallel()
+	p, err := New(context.Background(), provider.ProviderConfig{
+		Name: "kvm-home", Type: "kvm",
+		KVM: &provider.KVMConfig{
+			SSHKeyFile:     filepath.Join(t.TempDir(), "absent"),
+			KnownHostsFile: filepath.Join(t.TempDir(), "absent"),
+			Hosts:          []provider.KVMHost{{Name: "nas1", Address: "nas1:22", User: "virt", Bridge: "br0"}},
+		},
+	})
+	if err != nil || p == nil {
+		t.Fatalf("New() = %v, %v; want a usable provider", p, err)
+	}
+	if _, err := p.Get(context.Background(), "hosts/nas1/domains/proxy-x"); provider.Class(err) != provider.ErrTransient {
+		t.Errorf("Get class = %v, want ErrTransient", provider.Class(err))
+	}
+}
+
 func TestKeepalive_closesClientWhenServerStalls(t *testing.T) {
 	t.Parallel()
 	f := newSSHFixture(t, false)
-	auth, err := newSSHAuth(f.cfg)
+	client, err := mustSSHAuth(t, f.cfg).dialSSH(context.Background(), f.host)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
-	client, err := auth.dialSSH(context.Background(), f.host)
 	if err != nil {
 		t.Fatalf("dialSSH() error = %v", err)
 	}
@@ -547,11 +638,7 @@ func TestKeepalive_closesClientWhenServerStalls(t *testing.T) {
 func TestKeepalive_keepsHealthyClientOpen(t *testing.T) {
 	t.Parallel()
 	f := newSSHFixture(t, true)
-	auth, err := newSSHAuth(f.cfg)
+	client, err := mustSSHAuth(t, f.cfg).dialSSH(context.Background(), f.host)
-	if err != nil {
-		t.Fatalf("newSSHAuth() error = %v", err)
-	}
-	client, err := auth.dialSSH(context.Background(), f.host)
 	if err != nil {
 		t.Fatalf("dialSSH() error = %v", err)
 	}
@@ -567,3 +654,69 @@ func TestKeepalive_keepsHealthyClientOpen(t *testing.T) {
 	}
 	conn.Close()
 }
+
+func TestHostPool_call_tracesAtV1(t *testing.T) {
+	t.Parallel()
+	d := &fakeDialer{api: readyHost()}
+	p := newHostPool(d.dial)
+	log, snapshot := captureLogger(1)
+	err := p.call(context.Background(), log, testHost, func(api libvirtAPI) error {
+		_, err := api.StoragePoolLookupByName("default")
+		return err
+	})
+	if err != nil {
+		t.Fatalf("call() error = %v", err)
+	}
+	joined := strings.Join(snapshot(), "\n")
+	for _, want := range []string{`"msg"="libvirt host connected"`, `"address"="nas1:22"`, `"rpc"="virStoragePoolLookupByName"`, `"pool"="default"`, "libvirt "} {
+		if !strings.Contains(joined, want) {
+			t.Errorf("output missing %s:\n%s", want, joined)
+		}
+	}
+}
+
+func TestHostPool_call_noTracingBelowV1(t *testing.T) {
+	t.Parallel()
+	inner := readyHost()
+	d := &fakeDialer{api: inner}
+	p := newHostPool(d.dial)
+	log, snapshot := captureLogger(0)
+	err := p.call(context.Background(), log, testHost, func(api libvirtAPI) error {
+		if api != libvirtAPI(inner) {
+			t.Errorf("fn received %T, want the bare fake when V(1) is off", api)
+		}
+		return nil
+	})
+	if err != nil {
+		t.Fatalf("call() error = %v", err)
+	}
+	if lines := snapshot(); len(lines) != 0 {
+		t.Errorf("verbosity 0 logged %d lines:\n%s", len(lines), strings.Join(lines, "\n"))
+	}
+}
+
+func TestHostPool_call_logsCancelDropReason(t *testing.T) {
+	t.Parallel()
+	d := &fakeDialer{}
+	p := newHostPool(d.dial)
+	log, snapshot := captureLogger(1)
+	ctx, cancel := context.WithCancel(context.Background())
+	cancel()
+	released := make(chan struct{})
+	err := p.call(ctx, log, testHost, func(libvirtAPI) error {
+		<-d.clients[0].done
+		close(released)
+		return io.EOF
+	})
+	if !errors.Is(err, context.Canceled) {
+		t.Fatalf("call() error = %v, want context.Canceled", err)
+	}
+	<-released
+	joined := strings.Join(snapshot(), "\n")
+	if !strings.Contains(joined, `"reason"="context cancelled"`) {
+		t.Errorf("output missing the cancel drop line:\n%s", joined)
+	}
+	if strings.Contains(joined, `"reason"="transport error"`) {
+		t.Errorf("cancel was also reported as a transport error:\n%s", joined)
+	}
+}

internal/provider/kvm/domainxml.go

@@ -9,35 +9,54 @@ import (
 const guestAgentChannel = "org.qemu.guest_agent.0"
 
 // domainParams is everything buildDomainXML needs, already resolved from the
-// config and placement so the builder stays a pure function.
+// config and placement so the builder stays a pure function. DiskPath and
+// SeedPath are the volumes' host paths as reported by libvirt; Firmware is
+// firmwareUEFI or firmwareBIOS.
 type domainParams struct {
 	Name      string
 	UID       string
 	CreatedAt time.Time
 	VCPUs     int32
 	MemoryMiB int64
-	Pool      string
+	Firmware  string
 	Bridge    string
-	DiskVol   string
+	DiskPath  string
-	SeedVol   string
+	SeedPath  string
 }
 
 // buildDomainXML renders a q35 KVM guest: host-passthrough CPU, a virtio
-// overlay disk and a SATA cdrom for the seed (both referenced as pool
+// overlay disk and a SATA cdrom for the seed, one virtio NIC on the host
-// volumes so no host paths are needed), one virtio NIC on the host bridge,
+// bridge, a serial console, the guest-agent channel, a virtio RNG, no
-// a serial console, the guest-agent channel, a virtio RNG, no graphics, and
+// graphics, and the operator's metadata element.
-// the operator's metadata element.
+//
+// Disks are type="file" with host paths, not type="volume" with pool/volume
+// names: libvirt's AppArmor helper (virt-aa-helper) only grants QEMU access
+// to sources that carry a path, so a volume-referenced disk fails to start
+// with "Permission denied" on any AppArmor-confined host (stock Debian and
+// Ubuntu). The paths cost one StorageVolGetPath round-trip each per Create.
+//
+// UEFI is expressed as <os firmware="efi"> with secure boot off, and libvirt
+// picks the OVMF binary and creates the NVRAM file itself (removed again by
+// the nvram undefine flag). Under SeaBIOS, Debian 13's GRUB hangs on a
+// headless domain with a serial console (Debian bug #1111240:
+// "terminal_output gfxterm serial" with no video device); the same image
+// boots under UEFI with the serial console intact.
 func buildDomainXML(p domainParams) (string, error) {
+	os := osXML{
+		Type: osTypeXML{Arch: "x86_64", Machine: "q35", Value: "hvm"},
+		Boot: bootXML{Dev: "hd"},
+	}
+	if p.Firmware == firmwareUEFI {
+		os.Firmware = "efi"
+		os.FirmwareFeatures = &firmwareXML{Features: []firmwareFeatureXML{{Enabled: "no", Name: "secure-boot"}}}
+	}
 	d := domainXML{
-		Type:     "kvm",
+		Type:       "kvm",
-		Name:     p.Name,
+		Name:       p.Name,
-		Metadata: domainMetadataXML{Instance: newInstanceMetadata(p.UID, p.CreatedAt)},
+		Metadata:   domainMetadataXML{Instance: newInstanceMetadata(p.UID, p.CreatedAt)},
-		Memory:   sizeXML{Unit: "MiB", Value: p.MemoryMiB},
+		Memory:     sizeXML{Unit: "MiB", Value: p.MemoryMiB},
-		VCPU:     p.VCPUs,
+		VCPU:       p.VCPUs,
-		OS: osXML{
+		OS:         os,
-			Type: osTypeXML{Arch: "x86_64", Machine: "q35", Value: "hvm"},
-			Boot: bootXML{Dev: "hd"},
-		},
 		Features:   featuresXML{ACPI: &struct{}{}, APIC: &struct{}{}},
 		CPU:        cpuXML{Mode: "host-passthrough"},
 		Clock:      clockXML{Offset: "utc"},
@@ -47,17 +66,17 @@ func buildDomainXML(p domainParams) (string, error) {
 		Devices: devicesXML{
 			Disks: []diskXML{
 				{
-					Type:   "volume",
+					Type:   "file",
 					Device: "disk",
 					Driver: driverXML{Name: "qemu", Type: formatQcow2},
-					Source: diskSourceXML{Pool: p.Pool, Volume: p.DiskVol},
+					Source: diskSourceXML{File: p.DiskPath},
 					Target: targetXML{Dev: "vda", Bus: "virtio"},
 				},
 				{
-					Type:     "volume",
+					Type:     "file",
 					Device:   "cdrom",
 					Driver:   driverXML{Name: "qemu", Type: formatRaw},
-					Source:   diskSourceXML{Pool: p.Pool, Volume: p.SeedVol},
+					Source:   diskSourceXML{File: p.SeedPath},
 					Target:   targetXML{Dev: "sda", Bus: "sata"},
 					ReadOnly: &struct{}{},
 				},
@@ -110,8 +129,19 @@ type sizeXML struct {
 }
 
 type osXML struct {
-	Type osTypeXML `xml:"type"`
+	Firmware         string       `xml:"firmware,attr,omitempty"`
-	Boot bootXML   `xml:"boot"`
+	Type             osTypeXML    `xml:"type"`
+	FirmwareFeatures *firmwareXML `xml:"firmware"`
+	Boot             bootXML      `xml:"boot"`
+}
+
+type firmwareXML struct {
+	Features []firmwareFeatureXML `xml:"feature"`
+}
+
+type firmwareFeatureXML struct {
+	Enabled string `xml:"enabled,attr"`
+	Name    string `xml:"name,attr"`
 }
 
 type osTypeXML struct {
@@ -161,8 +191,7 @@ type driverXML struct {
 }
 
 type diskSourceXML struct {
-	Pool   string `xml:"pool,attr"`
+	File string `xml:"file,attr"`
-	Volume string `xml:"volume,attr"`
 }
 
 type targetXML struct {

internal/provider/kvm/domainxml_test.go

@@ -14,10 +14,10 @@ func testDomainParams() domainParams {
 		CreatedAt: time.Date(2026, 9, 4, 12, 0, 0, 0, time.UTC),
 		VCPUs:     2,
 		MemoryMiB: 2048,
-		Pool:      "default",
+		Firmware:  firmwareUEFI,
 		Bridge:    "br0",
-		DiskVol:   "proxy-abc123def456ghij.qcow2",
+		DiskPath:  "/var/lib/libvirt/images/proxy-abc123def456ghij.qcow2",
-		SeedVol:   "proxy-abc123def456ghij-seed.iso",
+		SeedPath:  "/var/lib/libvirt/images/proxy-abc123def456ghij-seed.iso",
 	}
 }
 
@@ -41,6 +41,10 @@ func TestBuildDomainXML_fieldByField(t *testing.T) {
 	if d.OS.Type.Value != "hvm" || d.OS.Type.Arch != "x86_64" || d.OS.Type.Machine != "q35" || d.OS.Boot.Dev != "hd" {
 		t.Errorf("os = %+v", d.OS)
 	}
+	if d.OS.Firmware != "efi" || d.OS.FirmwareFeatures == nil || len(d.OS.FirmwareFeatures.Features) != 1 ||
+		d.OS.FirmwareFeatures.Features[0] != (firmwareFeatureXML{Enabled: "no", Name: "secure-boot"}) {
+		t.Errorf("os firmware = %q %+v, want efi with secure-boot disabled", d.OS.Firmware, d.OS.FirmwareFeatures)
+	}
 	if d.Features.ACPI == nil || d.Features.APIC == nil {
 		t.Errorf("features = %+v, want acpi and apic", d.Features)
 	}
@@ -63,16 +67,19 @@ func TestBuildDomainXML_fieldByField(t *testing.T) {
 		t.Fatalf("disks = %d, want 2", len(d.Devices.Disks))
 	}
 	disk, seed := d.Devices.Disks[0], d.Devices.Disks[1]
-	if disk.Type != "volume" || disk.Device != "disk" || disk.Driver.Type != "qcow2" ||
+	if disk.Type != "file" || disk.Device != "disk" || disk.Driver.Type != "qcow2" ||
-		disk.Source.Pool != "default" || disk.Source.Volume != "proxy-abc123def456ghij.qcow2" ||
+		disk.Source.File != "/var/lib/libvirt/images/proxy-abc123def456ghij.qcow2" ||
 		disk.Target.Dev != "vda" || disk.Target.Bus != "virtio" || disk.ReadOnly != nil {
 		t.Errorf("overlay disk = %+v", disk)
 	}
-	if seed.Type != "volume" || seed.Device != "cdrom" || seed.Driver.Type != "raw" ||
+	if seed.Type != "file" || seed.Device != "cdrom" || seed.Driver.Type != "raw" ||
-		seed.Source.Pool != "default" || seed.Source.Volume != "proxy-abc123def456ghij-seed.iso" ||
+		seed.Source.File != "/var/lib/libvirt/images/proxy-abc123def456ghij-seed.iso" ||
 		seed.Target.Bus != "sata" || seed.ReadOnly == nil {
 		t.Errorf("seed cdrom = %+v", seed)
 	}
+	if strings.Contains(raw, `type="volume"`) || strings.Contains(raw, " pool=") {
+		t.Errorf("disks reference pool volumes; virt-aa-helper cannot grant QEMU access to those:\n%s", raw)
+	}
 
 	if len(d.Devices.Interfaces) != 1 {
 		t.Fatalf("interfaces = %d, want 1", len(d.Devices.Interfaces))
@@ -111,3 +118,20 @@ func TestBuildDomainXML_escapesUserValues(t *testing.T) {
 		t.Errorf("bridge = %q, want the raw value back", d.Devices.Interfaces[0].Source.Bridge)
 	}
 }
+
+func TestBuildDomainXML_biosFirmware(t *testing.T) {
+	t.Parallel()
+	p := testDomainParams()
+	p.Firmware = firmwareBIOS
+	raw, err := buildDomainXML(p)
+	if err != nil {
+		t.Fatalf("buildDomainXML() error = %v", err)
+	}
+	var d domainXML
+	if err := xml.Unmarshal([]byte(raw), &d); err != nil {
+		t.Fatalf("output is not well-formed XML: %v", err)
+	}
+	if d.OS.Firmware != "" || d.OS.FirmwareFeatures != nil || strings.Contains(raw, "firmware") {
+		t.Errorf("bios domain still carries firmware settings:\n%s", raw)
+	}
+}

internal/provider/kvm/errors.go

@@ -19,10 +19,8 @@ import (
 // function to recognise. libvirt exposes no quota signal, so nothing maps
 // to QuotaExceeded.
 func classify(err error) error {
-	for _, class := range []error{provider.ErrNotFound, provider.ErrQuotaExceeded, provider.ErrPermanent, provider.ErrTransient} {
+	if isClassified(err) {
-		if errors.Is(err, class) {
+		return provider.Class(err)
-			return class
-		}
 	}
 	var lerr libvirt.Error
 	if !errors.As(err, &lerr) {
@@ -51,6 +49,18 @@ func isLibvirtError(err error) bool {
 	return errors.As(err, &lerr)
 }
 
+// isClassified reports whether err already carries one of the provider's
+// sentinels, i.e. the package reached a verdict itself rather than hitting
+// a transport failure.
+func isClassified(err error) bool {
+	for _, class := range []error{provider.ErrNotFound, provider.ErrQuotaExceeded, provider.ErrPermanent, provider.ErrTransient} {
+		if errors.Is(err, class) {
+			return true
+		}
+	}
+	return false
+}
+
 func hasCode(err error, code libvirt.ErrorNumber) bool {
 	var lerr libvirt.Error
 	return errors.As(err, &lerr) && libvirt.ErrorNumber(lerr.Code) == code
@@ -63,10 +73,18 @@ func logAPIError(log logr.Logger, op string, err error) {
 	if !log.V(1).Enabled() {
 		return
 	}
-	kv := []any{"op", op, "error", err.Error()}
+	kv := append([]any{"op", op, "error", err.Error()}, libvirtErrorFields(err)...)
-	var lerr libvirt.Error
-	if errors.As(err, &lerr) {
-		kv = append(kv, "libvirtCode", lerr.Code, "libvirtMessage", lerr.Message)
-	}
 	log.V(1).Info("libvirt call failed", kv...)
 }
+
+// libvirtErrorFields renders a daemon-reported error as log key/values:
+// its constant name (ErrNoDomain, ...) and numeric code. The daemon's
+// message is already the error text. Nil for transport and other
+// non-libvirt errors.
+func libvirtErrorFields(err error) []any {
+	var lerr libvirt.Error
+	if !errors.As(err, &lerr) {
+		return nil
+	}
+	return []any{"libvirtError", libvirt.ErrorNumber(lerr.Code).String(), "libvirtCode", lerr.Code}
+}

internal/provider/kvm/errors_test.go

@@ -5,6 +5,7 @@ import (
 	"errors"
 	"fmt"
 	"io"
+	"reflect"
 	"testing"
 
 	libvirt "github.com/digitalocean/go-libvirt"
@@ -67,3 +68,26 @@ func TestHasCode(t *testing.T) {
 		t.Error("io.EOF classified as a libvirt error")
 	}
 }
+
+func TestLibvirtErrorFields(t *testing.T) {
+	t.Parallel()
+	tests := []struct {
+		name string
+		err  error
+		want []any
+	}{
+		{"libvirt error", lvErr(libvirt.ErrNoDomain), []any{"libvirtError", "ErrNoDomain", "libvirtCode", uint32(42)}},
+		{"wrapped libvirt error", fmt.Errorf("looking up: %w", lvErr(libvirt.ErrNoDomain)), []any{"libvirtError", "ErrNoDomain", "libvirtCode", uint32(42)}},
+		{"transport error", io.EOF, nil},
+		{"cancelled", context.Canceled, nil},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			got := libvirtErrorFields(tc.err)
+			if !reflect.DeepEqual(got, tc.want) {
+				t.Errorf("libvirtErrorFields() = %#v, want %#v", got, tc.want)
+			}
+		})
+	}
+}

internal/provider/kvm/fake_test.go

@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"io"
 	"slices"
+	"strings"
 	"sync"
 
 	libvirt "github.com/digitalocean/go-libvirt"
@@ -30,7 +31,6 @@ type fakeAPI struct {
 }
 
 type fakeVol struct {
-	name     string
 	format   string
 	capacity int64
 	backing  string
@@ -93,7 +93,7 @@ func (f *fakeAPI) vol(pool, name string) *fakeVol {
 func (f *fakeAPI) putVol(pool, name, format string, data []byte) {
 	f.mu.Lock()
 	defer f.mu.Unlock()
-	f.pools[pool][name] = &fakeVol{name: name, format: format, capacity: int64(len(data)), data: data}
+	f.pools[pool][name] = &fakeVol{format: format, capacity: int64(len(data)), data: data}
 }
 
 func (f *fakeAPI) volNames(pool string) []string {
@@ -151,8 +151,11 @@ func (f *fakeAPI) DomainDefineXML(raw string) (libvirt.Domain, error) {
 	if err != nil {
 		return libvirt.Domain{}, lvError(libvirt.ErrXMLError, "%v", err)
 	}
+	// libvirt hands the element back without its namespace declaration
+	// (seen on 11.6); mimic that so Get/ListByTag parse the real shape.
+	stored := strings.Replace(string(meta), ` xmlns="`+metadataURI+`"`, "", 1)
 	existing := f.domains[d.Name]
-	nd := &fakeDomain{name: d.Name, xml: raw, metadata: string(meta)}
+	nd := &fakeDomain{name: d.Name, xml: raw, metadata: stored}
 	if existing != nil {
 		nd.running = existing.running
 		nd.addrs = existing.addrs
@@ -344,7 +347,7 @@ func (f *fakeAPI) StorageVolCreateXML(pool libvirt.StoragePool, raw string, _ li
 	if _, exists := vols[v.Name]; exists {
 		return libvirt.StorageVol{}, lvError(libvirt.ErrStorageVolExist, "storage volume '%s' exists already", v.Name)
 	}
-	fv := &fakeVol{name: v.Name, format: v.Target.Format.Type, capacity: v.Capacity.Value}
+	fv := &fakeVol{format: v.Target.Format.Type, capacity: v.Capacity.Value}
 	if v.BackingStore != nil {
 		fv.backing = v.BackingStore.Path
 	}

internal/provider/kvm/image.go

@@ -8,7 +8,6 @@ import (
 	"fmt"
 	"io"
 	"net/http"
-	"net/url"
 	"strings"
 	"sync"
 	"time"
@@ -22,10 +21,8 @@ import (
 // imageSource is a resolved placement.image: either an entry from the
 // provider's images map (Key set) or a URL given directly.
 type imageSource struct {
-	Key    string
+	Key string
-	URL    string
+	provider.KVMImage
-	SHA256 string
-	Format string
 }
 
 // resolveImage maps placement.image to a source. Anything that is neither a
@@ -33,11 +30,10 @@ type imageSource struct {
 // surface, not retry.
 func resolveImage(cfg provider.KVMConfig, image string) (imageSource, error) {
 	if img, ok := cfg.Images[image]; ok {
-		return imageSource{Key: image, URL: img.URL, SHA256: img.SHA256, Format: img.Format}, nil
+		return imageSource{Key: image, KVMImage: img}, nil
 	}
-	u, err := url.Parse(image)
+	if provider.IsHTTPURL(image) {
-	if err == nil && (u.Scheme == "http" || u.Scheme == "https") && u.Host != "" {
+		return imageSource{KVMImage: imageDefaults(provider.KVMImage{URL: image})}, nil
-		return imageSource{URL: image, Format: formatQcow2}, nil
 	}
 	return imageSource{}, fmt.Errorf("%w: placement.image %q is neither a key in kvm.images nor an http(s) URL",
 		provider.ErrPermanent, image)
@@ -101,7 +97,7 @@ func (c *imageCache) ensure(ctx context.Context, log logr.Logger, api libvirtAPI
 		return "", err
 	}
 	if ready {
-		log.V(1).Info("base image already cached", "host", hostName, "volume", src.volumeName())
+		log.V(1).Info("base image already cached", "volume", src.volumeName())
 		return api.StorageVolGetPath(base)
 	}
 	if err := deleteIfExists(api, pool, src.markerName()); err != nil {
@@ -170,7 +166,7 @@ func (c *imageCache) fetch(ctx context.Context, log logr.Logger, api libvirtAPI,
 	}
 
 	log.Info("fetching base image into host pool",
-		"host", hostName, "pool", pool.Name, "volume", src.volumeName(),
+		"pool", pool.Name, "volume", src.volumeName(),
 		"url", src.URL, "bytes", resp.ContentLength)
 	start := time.Now()
 
@@ -212,7 +208,7 @@ func (c *imageCache) fetch(ctx context.Context, log logr.Logger, api libvirtAPI,
 		return libvirt.StorageVol{}, fmt.Errorf("writing image marker: %w", err)
 	}
 	log.Info("base image cached",
-		"host", hostName, "volume", src.volumeName(), "sha256", digest,
+		"volume", src.volumeName(), "sha256", digest,
 		"bytes", resp.ContentLength, "duration", time.Since(start).Round(time.Second))
 	return base, nil
 }

internal/provider/kvm/image_test.go

@@ -37,12 +37,11 @@ type imageServer struct {
 	status   int
 	noLength bool
 	delay    time.Duration
-	body     []byte
 }
 
 func newImageServer(t *testing.T) *imageServer {
 	t.Helper()
-	s := &imageServer{status: http.StatusOK, body: testImage}
+	s := &imageServer{status: http.StatusOK}
 	s.Server = httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, _ *http.Request) {
 		s.hits.Add(1)
 		time.Sleep(s.delay)
@@ -55,16 +54,16 @@ func newImageServer(t *testing.T) *imageServer {
 		if s.noLength {
 			w.(http.Flusher).Flush()
 		} else {
-			w.Header().Set("Content-Length", strconv.Itoa(len(s.body)))
+			w.Header().Set("Content-Length", strconv.Itoa(len(testImage)))
 		}
-		_, _ = w.Write(s.body)
+		_, _ = w.Write(testImage)
 	}))
 	t.Cleanup(s.Close)
 	return s
 }
 
 func testSource(srv *imageServer, sha string) imageSource {
-	return imageSource{Key: "debian-13", URL: srv.URL + "/debian.qcow2", SHA256: sha, Format: formatQcow2}
+	return imageSource{Key: "debian-13", KVMImage: provider.KVMImage{URL: srv.URL + "/debian.qcow2", SHA256: sha, Format: formatQcow2}}
 }
 
 func ensureTest(t *testing.T, api *fakeAPI, src imageSource) (string, error) {
@@ -88,9 +87,9 @@ func TestResolveImage(t *testing.T) {
 		want    imageSource
 		wantErr bool
 	}{
-		{"configured key", "debian-13", imageSource{Key: "debian-13", URL: "https://cloud.debian.org/d.qcow2", SHA256: "abc", Format: "qcow2"}, false},
+		{"configured key", "debian-13", imageSource{Key: "debian-13", KVMImage: provider.KVMImage{URL: "https://cloud.debian.org/d.qcow2", SHA256: "abc", Format: "qcow2", Firmware: "uefi"}}, false},
-		{"direct https url", "https://x.example/img.qcow2", imageSource{URL: "https://x.example/img.qcow2", Format: "qcow2"}, false},
+		{"direct https url", "https://x.example/img.qcow2", imageSource{KVMImage: provider.KVMImage{URL: "https://x.example/img.qcow2", Format: "qcow2", Firmware: "uefi"}}, false},
-		{"direct http url", "http://mirror/img.qcow2", imageSource{URL: "http://mirror/img.qcow2", Format: "qcow2"}, false},
+		{"direct http url", "http://mirror/img.qcow2", imageSource{KVMImage: provider.KVMImage{URL: "http://mirror/img.qcow2", Format: "qcow2", Firmware: "uefi"}}, false},
 		{"unknown key", "ubuntu", imageSource{}, true},
 		{"file url", "file:///tmp/x.qcow2", imageSource{}, true},
 		{"empty", "", imageSource{}, true},
@@ -100,9 +99,7 @@ func TestResolveImage(t *testing.T) {
 			t.Parallel()
 			got, err := resolveImage(cfg, tc.image)
 			if tc.wantErr {
-				if !errors.Is(err, provider.ErrPermanent) {
+				wantClass(t, err, provider.ErrPermanent)
-					t.Fatalf("resolveImage(%q) error = %v, want ErrPermanent", tc.image, err)
-				}
 				return
 			}
 			if err != nil {
@@ -117,16 +114,16 @@ func TestResolveImage(t *testing.T) {
 
 func TestImageSource_volumeNames(t *testing.T) {
 	t.Parallel()
-	keyed := imageSource{Key: "debian-13", URL: "https://a/b.qcow2", Format: "qcow2"}
+	keyed := imageSource{Key: "debian-13", KVMImage: provider.KVMImage{URL: "https://a/b.qcow2", Format: "qcow2"}}
 	if keyed.volumeName() != "base-debian-13.qcow2" || keyed.markerName() != "base-debian-13.qcow2.sha256" {
 		t.Errorf("keyed names = %s / %s", keyed.volumeName(), keyed.markerName())
 	}
-	direct := imageSource{URL: "https://a/b.qcow2", Format: "qcow2"}
+	direct := imageSource{KVMImage: provider.KVMImage{URL: "https://a/b.qcow2", Format: "qcow2"}}
 	name := direct.volumeName()
 	if !strings.HasPrefix(name, "base-") || !strings.HasSuffix(name, ".qcow2") || len(name) != len("base-")+16+len(".qcow2") {
 		t.Errorf("direct-url name = %q, want base-<16 hex>.qcow2", name)
 	}
-	other := imageSource{URL: "https://a/c.qcow2", Format: "qcow2"}
+	other := imageSource{KVMImage: provider.KVMImage{URL: "https://a/c.qcow2", Format: "qcow2"}}
 	if other.volumeName() == name {
 		t.Error("different URLs produced the same volume name")
 	}
@@ -181,57 +178,47 @@ func TestImageCache_ensure_noChecksumConfigured(t *testing.T) {
 	}
 }
 
-func TestImageCache_ensure_alreadyCached(t *testing.T) {
+func TestImageCache_ensure_existingVolumes(t *testing.T) {
 	t.Parallel()
-	srv := newImageServer(t)
+	tests := []struct {
-	api := newFakeAPI("default")
+		name     string
-	api.putVol("default", "base-debian-13.qcow2", "qcow2", testImage)
+		base     []byte
-	api.putVol("default", "base-debian-13.qcow2.sha256", "raw", []byte(testImageSHA()))
+		marker   []byte
-	path, err := ensureTest(t, api, testSource(srv, testImageSHA()))
+		wantHits int32
-	if err != nil {
+	}{
-		t.Fatalf("ensure() error = %v", err)
+		{"already cached", testImage, []byte(testImageSHA()), 0},
+		{"marker missing is a partial upload", []byte("half an image"), nil, 1},
+		{"configured checksum changed", []byte("an older release"), []byte(strings.Repeat("0", 64)), 1},
 	}
-	if path != "/var/lib/libvirt/images/base-debian-13.qcow2" {
+	for _, tc := range tests {
-		t.Errorf("path = %q", path)
+		t.Run(tc.name, func(t *testing.T) {
-	}
+			t.Parallel()
-	if srv.hits.Load() != 0 {
+			srv := newImageServer(t)
-		t.Errorf("http hits = %d, want 0 for a cached image", srv.hits.Load())
+			api := newFakeAPI("default")
-	}
+			api.putVol("default", "base-debian-13.qcow2", "qcow2", tc.base)
-	if api.hasCall("StorageVolCreateXML") || api.hasCall("StorageVolDelete") {
+			if tc.marker != nil {
-		t.Errorf("cached image was touched: calls = %v", api.calls)
+				api.putVol("default", "base-debian-13.qcow2.sha256", "raw", tc.marker)
-	}
+			}
-}
+			path, err := ensureTest(t, api, testSource(srv, testImageSHA()))
-
+			if err != nil {
-func TestImageCache_ensure_markerMissingRedownloads(t *testing.T) {
+				t.Fatalf("ensure() error = %v", err)
-	t.Parallel()
+			}
-	srv := newImageServer(t)
+			if path != "/var/lib/libvirt/images/base-debian-13.qcow2" {
-	api := newFakeAPI("default")
+				t.Errorf("path = %q", path)
-	api.putVol("default", "base-debian-13.qcow2", "qcow2", []byte("half an image"))
+			}
-	if _, err := ensureTest(t, api, testSource(srv, testImageSHA())); err != nil {
+			if srv.hits.Load() != tc.wantHits {
-		t.Fatalf("ensure() error = %v", err)
+				t.Errorf("http hits = %d, want %d", srv.hits.Load(), tc.wantHits)
-	}
+			}
-	if srv.hits.Load() != 1 {
+			if touched := api.hasCall("StorageVolCreateXML") || api.hasCall("StorageVolDelete"); touched != (tc.wantHits > 0) {
-		t.Errorf("http hits = %d, want 1: a base without its marker is a partial upload", srv.hits.Load())
+				t.Errorf("volumes touched = %v, want %v: calls = %v", touched, tc.wantHits > 0, api.calls)
-	}
+			}
-	if base := api.vol("default", "base-debian-13.qcow2"); base == nil || !bytes.Equal(base.data, testImage) {
+			if base := api.vol("default", "base-debian-13.qcow2"); base == nil || !bytes.Equal(base.data, testImage) {
-		t.Error("partial base volume was not replaced")
+				t.Error("base volume does not hold the verified image")
-	}
+			}
-}
+			if marker := api.vol("default", "base-debian-13.qcow2.sha256"); marker == nil || string(marker.data) != testImageSHA() {
-
+				t.Errorf("marker = %+v, want the verified digest", marker)
-func TestImageCache_ensure_checksumChangedRedownloads(t *testing.T) {
+			}
-	t.Parallel()
+		})
-	srv := newImageServer(t)
-	api := newFakeAPI("default")
-	api.putVol("default", "base-debian-13.qcow2", "qcow2", []byte("an older release"))
-	api.putVol("default", "base-debian-13.qcow2.sha256", "raw", []byte(strings.Repeat("0", 64)))
-	if _, err := ensureTest(t, api, testSource(srv, testImageSHA())); err != nil {
-		t.Fatalf("ensure() error = %v", err)
-	}
-	if srv.hits.Load() != 1 {
-		t.Errorf("http hits = %d, want 1 after the configured checksum changed", srv.hits.Load())
-	}
-	if marker := api.vol("default", "base-debian-13.qcow2.sha256"); marker == nil || string(marker.data) != testImageSHA() {
-		t.Errorf("marker not updated: %+v", marker)
 	}
 }
 
@@ -240,9 +227,7 @@ func TestImageCache_ensure_checksumMismatchIsPermanent(t *testing.T) {
 	srv := newImageServer(t)
 	api := newFakeAPI("default")
 	_, err := ensureTest(t, api, testSource(srv, strings.Repeat("a", 64)))
-	if !errors.Is(err, provider.ErrPermanent) {
+	wantClass(t, err, provider.ErrPermanent)
-		t.Fatalf("ensure() error = %v, want ErrPermanent", err)
-	}
 	if names := api.volNames("default"); len(names) != 0 {
 		t.Errorf("volumes left behind after a checksum mismatch: %v", names)
 	}
@@ -283,8 +268,9 @@ func TestImageCache_ensure_noContentLengthIsPermanent(t *testing.T) {
 	srv.noLength = true
 	api := newFakeAPI("default")
 	_, err := ensureTest(t, api, testSource(srv, ""))
-	if !errors.Is(err, provider.ErrPermanent) || !strings.Contains(err.Error(), "Content-Length") {
+	wantClass(t, err, provider.ErrPermanent)
-		t.Fatalf("ensure() error = %v, want ErrPermanent about Content-Length", err)
+	if !strings.Contains(err.Error(), "Content-Length") {
+		t.Errorf("ensure() error = %v, want one about Content-Length", err)
 	}
 }
 

internal/provider/kvm/kvm.go

@@ -26,8 +26,10 @@ const (
 	defaultDiskSizeGB = 10
 	defaultSocket     = "/var/run/libvirt/libvirt-sock"
 	defaultPool       = "default"
-	formatQcow2       = "qcow2"
+	formatQcow2       = provider.KVMFormatQcow2
-	formatRaw         = "raw"
+	formatRaw         = provider.KVMFormatRaw
+	firmwareUEFI      = provider.KVMFirmwareUEFI
+	firmwareBIOS      = provider.KVMFirmwareBIOS
 
 	// undefineFlags removes everything libvirt may keep alongside a domain
 	// definition, so an undefine never fails on leftover state.
@@ -40,15 +42,9 @@ func withDefaults(cfg provider.KVMConfig) provider.KVMConfig {
 	if cfg.DiskSizeGB == 0 {
 		cfg.DiskSizeGB = defaultDiskSizeGB
 	}
-	if cfg.VendorData == "" {
-		cfg.VendorData = defaultVendorData
-	}
 	images := make(map[string]provider.KVMImage, len(cfg.Images))
 	for k, img := range cfg.Images {
-		if img.Format == "" {
+		images[k] = imageDefaults(img)
-			img.Format = formatQcow2
-		}
-		images[k] = img
 	}
 	cfg.Images = images
 	hosts := make([]provider.KVMHost, len(cfg.Hosts))
@@ -74,30 +70,41 @@ type Provider struct {
 	now    func() time.Time
 }
 
+func imageDefaults(img provider.KVMImage) provider.KVMImage {
+	if img.Format == "" {
+		img.Format = formatQcow2
+	}
+	if img.Firmware == "" {
+		img.Firmware = firmwareUEFI
+	}
+	return img
+}
+
 // New builds a Provider that reaches its hosts over SSH. The key and
-// known_hosts files are read here so a bad path fails at startup rather
+// known_hosts files are tried once here and kept when usable, but a failure
-// than on the first Create. Satisfies registry.Constructor.
+// is only a warning, retried on the first connection: they come from an
-func New(_ context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
+// optional Secret mount, and a constructor that failed without it would
+// abort the whole provider set and crash-loop the manager, taking the
+// kubernetes and gcp providers down with it. Satisfies registry.Constructor.
+func New(ctx context.Context, pc provider.ProviderConfig) (provider.Provider, error) {
 	cfg := provider.KVMConfig{}
 	if pc.KVM != nil {
 		cfg = *pc.KVM
 	}
-	auth, err := newSSHAuth(cfg)
+	loader := newLazySSH(cfg)
-	if err != nil {
+	if _, err := loader.load(); err != nil {
-		return nil, fmt.Errorf("kvm provider %q: %w", pc.Name, err)
+		logf.FromContext(ctx).WithName("kvm").WithValues("provider", pc.Name).Info(
+			"WARNING: kvm ssh material is not usable; proxies on this provider will fail until it is",
+			"error", err.Error())
 	}
-	return newWithDialer(pc, auth.dialer(), nil), nil
+	return newWithDialer(pc.Name, cfg, loader.dial, nil), nil
 }
 
 // newWithDialer is the test seam: the dialer decides what libvirtAPI each
 // host resolves to, and the HTTP client is what image downloads go through.
-func newWithDialer(pc provider.ProviderConfig, dial hostDialer, httpClient *http.Client) *Provider {
+func newWithDialer(name string, cfg provider.KVMConfig, dial hostDialer, httpClient *http.Client) *Provider {
-	cfg := provider.KVMConfig{}
-	if pc.KVM != nil {
-		cfg = *pc.KVM
-	}
 	return &Provider{
-		name:   pc.Name,
+		name:   name,
 		cfg:    withDefaults(cfg),
 		hosts:  newHostPool(dial),
 		images: newImageCache(httpClient),
@@ -166,7 +173,7 @@ func (p *Provider) Create(ctx context.Context, req provider.CreateRequest) (stri
 		"vcpus", mt.VCPUs, "memoryMiB", mt.MemoryMiB, "diskSizeGb", p.cfg.DiskSizeGB,
 		"image", src.volumeName(), "cloudInitBytes", len(req.CloudInit))
 
-	err = p.hosts.call(ctx, host, func(api libvirtAPI) error {
+	err = p.hosts.call(ctx, log, host, func(api libvirtAPI) error {
 		dom, err := api.DomainLookupByName(req.Name)
 		if err == nil {
 			log.V(1).Info("domain already defined")
@@ -183,13 +190,23 @@ func (p *Provider) Create(ctx context.Context, req provider.CreateRequest) (stri
 		if err != nil {
 			return err
 		}
-		if err := p.ensureOverlay(log, api, pool, req.Name, basePath, src.Format); err != nil {
+		overlay, err := p.ensureOverlay(log, api, pool, req.Name, basePath, src.Format)
+		if err != nil {
 			return err
 		}
-		if err := p.writeSeed(log, api, pool, req.Name, req.CloudInit); err != nil {
+		seed, err := p.writeSeed(log, api, pool, req.Name, req.CloudInit)
+		if err != nil {
 			return err
 		}
-		dom, err = p.defineDomain(log, api, host, req, mt)
+		diskPath, err := api.StorageVolGetPath(overlay)
+		if err != nil {
+			return fmt.Errorf("resolving overlay path: %w", err)
+		}
+		seedPath, err := api.StorageVolGetPath(seed)
+		if err != nil {
+			return fmt.Errorf("resolving seed path: %w", err)
+		}
+		dom, err = p.defineDomain(log, api, host, req, mt, src.Firmware, diskPath, seedPath)
 		if err != nil {
 			return err
 		}
@@ -203,60 +220,71 @@ func (p *Provider) Create(ctx context.Context, req provider.CreateRequest) (stri
 	return id, nil
 }
 
-func (p *Provider) ensureOverlay(log logr.Logger, api libvirtAPI, pool libvirt.StoragePool, name, basePath, baseFormat string) error {
+// ensureOverlay creates the per-VM overlay volume, or returns the existing
+// one: creation is atomic, so an overlay that exists is complete.
+func (p *Provider) ensureOverlay(log logr.Logger, api libvirtAPI, pool libvirt.StoragePool, name, basePath, baseFormat string) (libvirt.StorageVol, error) {
 	xml, err := buildVolumeXML(overlayVolume(name, p.cfg.DiskSizeGB, basePath, baseFormat))
 	if err != nil {
-		return err
+		return libvirt.StorageVol{}, err
 	}
-	_, err = api.StorageVolCreateXML(pool, xml, 0)
+	vol, err := api.StorageVolCreateXML(pool, xml, 0)
 	switch {
 	case err == nil:
 		log.V(1).Info("overlay volume created", "volume", overlayVolumeName(name), "base", basePath)
+		return vol, nil
 	case hasCode(err, libvirt.ErrStorageVolExist):
 		log.V(1).Info("overlay volume already exists", "volume", overlayVolumeName(name))
+		vol, err := api.StorageVolLookupByName(pool, overlayVolumeName(name))
+		if err != nil {
+			return libvirt.StorageVol{}, fmt.Errorf("looking up existing overlay volume: %w", err)
+		}
+		return vol, nil
 	default:
-		return fmt.Errorf("creating overlay volume: %w", err)
+		return libvirt.StorageVol{}, fmt.Errorf("creating overlay volume: %w", err)
 	}
-	return nil
 }
 
 // writeSeed replaces the seed volume with a freshly built NoCloud ISO.
 // Only called while no domain references it.
-func (p *Provider) writeSeed(log logr.Logger, api libvirtAPI, pool libvirt.StoragePool, name, userData string) error {
+func (p *Provider) writeSeed(log logr.Logger, api libvirtAPI, pool libvirt.StoragePool, name, userData string) (libvirt.StorageVol, error) {
 	seedName := seedVolumeName(name)
 	if err := deleteIfExists(api, pool, seedName); err != nil {
-		return err
+		return libvirt.StorageVol{}, err
 	}
-	iso, err := buildSeedISO(name, userData, p.cfg.VendorData)
+	vendorData, err := buildVendorData(p.cfg.VendorData, p.cfg.InstallGuestAgent == nil || *p.cfg.InstallGuestAgent)
 	if err != nil {
-		return fmt.Errorf("%w: %v", provider.ErrPermanent, err)
+		return libvirt.StorageVol{}, fmt.Errorf("%w: %v", provider.ErrPermanent, err)
+	}
+	iso, err := buildSeedISO(name, userData, vendorData)
+	if err != nil {
+		return libvirt.StorageVol{}, fmt.Errorf("%w: %v", provider.ErrPermanent, err)
 	}
 	xml, err := buildVolumeXML(rawVolume(seedName, int64(len(iso))))
 	if err != nil {
-		return err
+		return libvirt.StorageVol{}, err
 	}
 	vol, err := api.StorageVolCreateXML(pool, xml, 0)
 	if err != nil {
-		return fmt.Errorf("creating seed volume: %w", err)
+		return libvirt.StorageVol{}, fmt.Errorf("creating seed volume: %w", err)
 	}
 	if err := api.StorageVolUpload(vol, bytes.NewReader(iso), 0, 0, 0); err != nil {
-		return fmt.Errorf("uploading seed volume: %w", err)
+		return libvirt.StorageVol{}, fmt.Errorf("uploading seed volume: %w", err)
 	}
 	log.V(1).Info("seed volume uploaded", "volume", seedName, "bytes", len(iso))
-	return nil
+	return vol, nil
 }
 
-func (p *Provider) defineDomain(log logr.Logger, api libvirtAPI, host provider.KVMHost, req provider.CreateRequest, mt provider.KVMMachineType) (libvirt.Domain, error) {
+func (p *Provider) defineDomain(log logr.Logger, api libvirtAPI, host provider.KVMHost, req provider.CreateRequest, mt provider.KVMMachineType, firmware, diskPath, seedPath string) (libvirt.Domain, error) {
 	xml, err := buildDomainXML(domainParams{
 		Name:      req.Name,
 		UID:       req.UID,
 		CreatedAt: p.now(),
 		VCPUs:     mt.VCPUs,
 		MemoryMiB: mt.MemoryMiB,
-		Pool:      host.Pool,
+		Firmware:  firmware,
 		Bridge:    host.Bridge,
-		DiskVol:   overlayVolumeName(req.Name),
+		DiskPath:  diskPath,
-		SeedVol:   seedVolumeName(req.Name),
+		SeedPath:  seedPath,
 	})
 	if err != nil {
 		return libvirt.Domain{}, err
@@ -265,7 +293,7 @@ func (p *Provider) defineDomain(log logr.Logger, api libvirtAPI, host provider.K
 	if err != nil {
 		return libvirt.Domain{}, fmt.Errorf("defining domain: %w", err)
 	}
-	log.V(1).Info("domain defined", "uid", req.UID)
+	log.V(1).Info("domain defined", "uid", req.UID, "firmware", firmware)
 	return dom, nil
 }
 
@@ -303,7 +331,7 @@ func (p *Provider) Get(ctx context.Context, providerID string) (*provider.Instan
 	}
 	log := p.logger(ctx).WithValues("host", host.Name, "name", name)
 	var inst *provider.Instance
-	err = p.hosts.call(ctx, host, func(api libvirtAPI) error {
+	err = p.hosts.call(ctx, log, host, func(api libvirtAPI) error {
 		dom, err := api.DomainLookupByName(name)
 		if err != nil {
 			return fmt.Errorf("looking up domain: %w", err)
@@ -428,7 +456,8 @@ func mapState(s libvirt.DomainState, ip string) provider.InstanceState {
 // domain is not destroyed again, a missing domain is not undefined, and
 // the per-VM volumes are removed by name even when the domain is already
 // gone, so a crash between volume creation and define is cleaned up on the
-// next reconcile.
+// next reconcile. A providerID naming a host that is no longer configured
+// is a no-op success rather than an error.
 func (p *Provider) Delete(ctx context.Context, providerID string) error {
 	hostName, name, err := parseProviderID(providerID)
 	if err != nil {
@@ -436,10 +465,17 @@ func (p *Provider) Delete(ctx context.Context, providerID string) error {
 	}
 	host, err := p.host(hostName)
 	if err != nil {
-		return p.wrapErr("delete", providerID, err)
+		// The host is no longer configured, so this operator has no way to
+		// reach the domain and nothing left to clean. Same reasoning as
+		// removeVolumes over a missing pool: refusing would pin the Proxy's
+		// finalizer. Whatever is still running there is the admin's to remove,
+		// and orphan GC cannot see it either — see docs/kvm-provider.md.
+		p.logger(ctx).Info("host is not configured; delete has nothing to clean up",
+			"host", hostName, "providerID", providerID)
+		return nil
 	}
 	log := p.logger(ctx).WithValues("host", host.Name, "name", name)
-	err = p.hosts.call(ctx, host, func(api libvirtAPI) error {
+	err = p.hosts.call(ctx, log, host, func(api libvirtAPI) error {
 		if err := p.removeDomain(log, api, name); err != nil {
 			return err
 		}
@@ -511,7 +547,7 @@ func (p *Provider) ListByTag(ctx context.Context) ([]provider.Instance, error) {
 	var out []provider.Instance
 	for _, host := range p.cfg.Hosts {
 		hlog := log.WithValues("host", host.Name)
-		err := p.hosts.call(ctx, host, func(api libvirtAPI) error {
+		err := p.hosts.call(ctx, hlog, host, func(api libvirtAPI) error {
 			doms, _, err := api.ConnectListAllDomains(1, 0)
 			if err != nil {
 				return fmt.Errorf("listing domains: %w", err)

internal/provider/kvm/kvm_integration_test.go

@@ -0,0 +1,396 @@
+//go:build integration
+
+package kvm
+
+// Integration test against a real libvirt/KVM hypervisor. It deviates from
+// the repo's testcontainers convention on purpose: libvirt needs /dev/kvm
+// and a bridge, neither of which a container provides, so this runs
+// against whatever host the KVM_TEST_* variables name. It creates one VM
+// from a stock cloud image, waits for it to report an address, deletes it,
+// and checks the pool afterwards. The base image stays cached on the host.
+//
+// Required:
+//
+//	KVM_TEST_HOST       SSH endpoint, host:port
+//	KVM_TEST_USER       SSH user (member of the libvirt group)
+//	KVM_TEST_SSH_KEY    path to the private key
+//	KVM_TEST_BRIDGE     host bridge for the VM's NIC
+//	KVM_TEST_IMAGE_URL  cloud image to fetch (http/https)
+//
+// Optional:
+//
+//	KVM_TEST_KNOWN_HOSTS   known_hosts file; without it host keys are NOT verified
+//	KVM_TEST_IMAGE_SHA256  expected digest of the image
+//	KVM_TEST_POOL          storage pool (default "default")
+//	KVM_TEST_SOCKET        libvirt socket path on the host
+//	KVM_TEST_TIMEOUT       overall budget incl. the image download (default 20m)
+//	KVM_TEST_KEEP          set to anything to leave the VM behind for inspection
+//	KVM_TEST_LOG_LEVEL     provider log verbosity shown in -v output (default 1:
+//	                       one line per libvirt call; 2 adds XML, metadata and
+//	                       addresses; 0 leaves only the t.Log lines)
+//
+// Provider logs are printed through t.Log in a compact form: time, logger
+// name, then the libvirt API function (or the message) and its fields.
+// The provider/host/name values that are the same on every line of a run
+// are dropped; the first t.Log line of the run states them. A run that
+// hits its timeout may log one more line from the RPC the pool abandoned,
+// after the test has ended; that is a symptom of the timeout, not a bug
+// in the tracer.
+
+import (
+	"context"
+	"crypto/rand"
+	"encoding/hex"
+	"errors"
+	"fmt"
+	"net"
+	"os"
+	"strconv"
+	"strings"
+	"testing"
+	"time"
+
+	libvirt "github.com/digitalocean/go-libvirt"
+	"github.com/go-logr/logr"
+	"k8s.io/apimachinery/pkg/types"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/provider"
+)
+
+const (
+	integrationHostName = "kvm-test"
+	integrationImageKey = "test-image"
+	integrationPoll     = 5 * time.Second
+)
+
+type integrationEnv struct {
+	cfg      provider.ProviderConfig
+	timeout  time.Duration
+	keep     bool
+	logLevel int
+}
+
+func loadIntegrationEnv(t *testing.T) integrationEnv {
+	t.Helper()
+	if testing.Short() {
+		t.Skip("integration test skipped under -short")
+	}
+	required := map[string]string{}
+	for _, key := range []string{"KVM_TEST_HOST", "KVM_TEST_USER", "KVM_TEST_SSH_KEY", "KVM_TEST_BRIDGE", "KVM_TEST_IMAGE_URL"} {
+		v := os.Getenv(key)
+		if v == "" {
+			t.Skipf("%s not set; skipping KVM integration test", key)
+		}
+		required[key] = v
+	}
+	cfg := &provider.KVMConfig{
+		SSHKeyFile:     required["KVM_TEST_SSH_KEY"],
+		KnownHostsFile: os.Getenv("KVM_TEST_KNOWN_HOSTS"),
+		Images: map[string]provider.KVMImage{
+			integrationImageKey: {URL: required["KVM_TEST_IMAGE_URL"], SHA256: os.Getenv("KVM_TEST_IMAGE_SHA256")},
+		},
+		MachineTypes: map[string]provider.KVMMachineType{"small": {VCPUs: 1, MemoryMiB: 1024}},
+		Hosts: []provider.KVMHost{{
+			Name:    integrationHostName,
+			Address: required["KVM_TEST_HOST"],
+			User:    required["KVM_TEST_USER"],
+			Socket:  os.Getenv("KVM_TEST_SOCKET"),
+			Pool:    os.Getenv("KVM_TEST_POOL"),
+			Bridge:  required["KVM_TEST_BRIDGE"],
+		}},
+	}
+	if cfg.KnownHostsFile == "" {
+		cfg.InsecureIgnoreHostKey = true
+		t.Log("KVM_TEST_KNOWN_HOSTS not set: host key verification disabled for this run")
+	}
+	pc := provider.ProviderConfig{Name: "kvm-integration", Type: "kvm", KVM: cfg}
+	timeout := 20 * time.Minute
+	if v := os.Getenv("KVM_TEST_TIMEOUT"); v != "" {
+		d, err := time.ParseDuration(v)
+		if err != nil {
+			t.Fatalf("KVM_TEST_TIMEOUT: %v", err)
+		}
+		timeout = d
+	}
+	logLevel := 1
+	if v := os.Getenv("KVM_TEST_LOG_LEVEL"); v != "" {
+		n, err := strconv.Atoi(v)
+		if err != nil {
+			t.Fatalf("KVM_TEST_LOG_LEVEL: %v", err)
+		}
+		logLevel = n
+	}
+	return integrationEnv{cfg: pc, timeout: timeout, keep: os.Getenv("KVM_TEST_KEEP") != "", logLevel: logLevel}
+}
+
+// integrationLogger routes provider logs into the test output at the
+// requested verbosity, and installs it as controller-runtime's root logger
+// so nothing falls back to the unfulfilled delegating sink (which would
+// print its "SetLogger was never called" warning and swallow the lines).
+func integrationLogger(t *testing.T, verbosity int) logr.Logger {
+	t.Helper()
+	log := logr.New(&compactSink{t: t, verbosity: verbosity})
+	logf.SetLogger(log)
+	return log
+}
+
+// compactSink is a logr sink for test output: one line per record as
+// "HH:MM:SS.mmm name headline k=v ...", where the headline is the rpc
+// field when present (the libvirt API function) and the message
+// otherwise. Keys that are constant for the whole run are omitted.
+type compactSink struct {
+	t         *testing.T
+	verbosity int
+	name      string
+	values    []any
+}
+
+var compactOmit = map[string]bool{"provider": true, "host": true, "name": true}
+
+func (s *compactSink) Init(logr.RuntimeInfo) {}
+
+func (s *compactSink) Enabled(level int) bool { return level <= s.verbosity }
+
+// GetCallStackHelper lets logr mark its frames as helpers, so t.Log
+// attributes each line to the provider code that logged it.
+func (s *compactSink) GetCallStackHelper() func() { return s.t.Helper }
+
+func (s *compactSink) Info(_ int, msg string, kv ...any) {
+	s.t.Helper()
+	s.t.Log(s.format(msg, kv))
+}
+
+func (s *compactSink) Error(err error, msg string, kv ...any) {
+	s.t.Helper()
+	s.t.Log(s.format(msg, append(kv, "error", err)))
+}
+
+func (s *compactSink) WithValues(kv ...any) logr.LogSink {
+	c := *s
+	c.values = append(append([]any(nil), s.values...), kv...)
+	return &c
+}
+
+func (s *compactSink) WithName(name string) logr.LogSink {
+	c := *s
+	if c.name != "" {
+		name = c.name + "/" + name
+	}
+	c.name = name
+	return &c
+}
+
+func (s *compactSink) format(msg string, kv []any) string {
+	all := append(append([]any(nil), s.values...), kv...)
+	headline := msg
+	var b strings.Builder
+	for i := 0; i+1 < len(all); i += 2 {
+		key := fmt.Sprint(all[i])
+		if key == "rpc" {
+			headline = fmt.Sprint(all[i+1])
+			continue
+		}
+		if compactOmit[key] {
+			continue
+		}
+		val := fmt.Sprint(all[i+1])
+		if strings.ContainsAny(val, " \t\"=") {
+			val = strconv.Quote(val)
+		}
+		b.WriteString(" " + key + "=" + val)
+	}
+	name := s.name[strings.LastIndex(s.name, "/")+1:]
+	return fmt.Sprintf("%s %s %s%s", time.Now().Format("15:04:05.000"), name, headline, b.String())
+}
+
+func randomUID(t *testing.T) string {
+	t.Helper()
+	var b [16]byte
+	if _, err := rand.Read(b[:]); err != nil {
+		t.Fatal(err)
+	}
+	h := hex.EncodeToString(b[:])
+	return fmt.Sprintf("%s-%s-%s-%s-%s", h[0:8], h[8:12], h[12:16], h[16:20], h[20:32])
+}
+
+// TestKVM_lifecycle is one sequential story, not parallel subtests: each
+// stage depends on the state the previous one left on the hypervisor.
+func TestKVM_lifecycle(t *testing.T) {
+	env := loadIntegrationEnv(t)
+	log := integrationLogger(t, env.logLevel)
+	ctx, cancel := context.WithTimeout(logr.NewContext(context.Background(), log), env.timeout)
+	defer cancel()
+
+	prov, err := New(ctx, env.cfg)
+	if err != nil {
+		t.Fatalf("New: %v", err)
+	}
+	p := prov.(*Provider)
+	host := p.cfg.Hosts[0]
+
+	uid := randomUID(t)
+	req := provider.CreateRequest{
+		Name:      provider.NameFromUID(types.UID(uid)),
+		UID:       uid,
+		Namespace: "integration",
+		ProxyName: "kvm-integration",
+		Placement: provider.Placement{Zone: integrationHostName, MachineType: "small", Image: integrationImageKey},
+		CloudInit: "#cloud-config\n",
+		Port:      3128,
+	}
+	t.Logf("host %s (%s), pool %q, bridge %s, domain %s", host.Name, host.Address, host.Pool, host.Bridge, req.Name)
+
+	// Cleanup runs even when a stage fails, with its own budget: the test
+	// ctx may already be spent by then.
+	t.Cleanup(func() {
+		if env.keep {
+			t.Logf("KVM_TEST_KEEP set: leaving domain %s and its volumes on %s", req.Name, host.Address)
+			return
+		}
+		cctx, ccancel := context.WithTimeout(logr.NewContext(context.Background(), log), 2*time.Minute)
+		defer ccancel()
+		if err := p.Delete(cctx, formatProviderID(host.Name, req.Name)); err != nil {
+			t.Errorf("cleanup Delete: %v", err)
+		}
+	})
+
+	// --- create (includes the image fetch on a cold host) ---
+	start := time.Now()
+	id, err := p.Create(ctx, req)
+	if err != nil {
+		t.Fatalf("Create: %v", err)
+	}
+	t.Logf("Create returned %s after %s", id, time.Since(start).Round(time.Second))
+	if want := formatProviderID(host.Name, req.Name); id != want {
+		t.Fatalf("providerID = %s, want %s", id, want)
+	}
+
+	// --- create again: must find what it made, not duplicate it ---
+	id2, err := p.Create(ctx, req)
+	if err != nil {
+		t.Fatalf("second Create: %v", err)
+	}
+	if id2 != id {
+		t.Fatalf("second Create returned %s, want %s", id2, id)
+	}
+
+	// --- wait for the guest to come up with an address ---
+	inst := waitForRunning(ctx, t, p, id)
+	t.Logf("domain Running with IP %s (state reported after %s)", inst.IP, time.Since(start).Round(time.Second))
+	if inst.UID != uid {
+		t.Errorf("UID read back = %q, want %q (metadata round-trip through libvirt)", inst.UID, uid)
+	}
+	if age := time.Since(inst.CreatedAt); inst.CreatedAt.IsZero() || age < 0 || age > time.Hour {
+		t.Errorf("CreatedAt = %s (age %s), want a recent timestamp", inst.CreatedAt, age)
+	}
+	if conn, err := net.DialTimeout("tcp", net.JoinHostPort(inst.IP, "22"), 5*time.Second); err != nil {
+		t.Logf("note: tcp %s:22 not reachable from this machine (%v); fine if the bridge network is not routed here", inst.IP, err)
+	} else {
+		conn.Close()
+		t.Logf("tcp %s:22 reachable from this machine", inst.IP)
+	}
+
+	// --- the GC view must include it ---
+	listed, err := p.ListByTag(ctx)
+	if err != nil {
+		t.Fatalf("ListByTag: %v", err)
+	}
+	if !containsID(listed, id) {
+		t.Errorf("ListByTag = %+v, want it to include %s", listed, id)
+	}
+
+	// --- delete, then verify nothing of the VM remains but the base image does ---
+	if err := p.Delete(ctx, id); err != nil {
+		t.Fatalf("Delete: %v", err)
+	}
+	if _, err := p.Get(ctx, id); !errors.Is(err, provider.ErrNotFound) {
+		t.Errorf("Get after Delete = %v, want ErrNotFound", err)
+	}
+	if err := p.Delete(ctx, id); err != nil {
+		t.Errorf("second Delete: %v, want nil (idempotent)", err)
+	}
+	listed, err = p.ListByTag(ctx)
+	if err != nil {
+		t.Fatalf("ListByTag after Delete: %v", err)
+	}
+	if containsID(listed, id) {
+		t.Errorf("ListByTag still includes %s after Delete", id)
+	}
+
+	src, err := resolveImage(p.cfg, integrationImageKey)
+	if err != nil {
+		t.Fatal(err)
+	}
+	err = p.hosts.call(ctx, p.logger(ctx).WithValues("host", host.Name), host, func(api libvirtAPI) error {
+		pool, err := api.StoragePoolLookupByName(host.Pool)
+		if err != nil {
+			return err
+		}
+		for _, gone := range []string{overlayVolumeName(req.Name), seedVolumeName(req.Name)} {
+			if _, err := api.StorageVolLookupByName(pool, gone); !hasCode(err, libvirt.ErrNoStorageVol) {
+				t.Errorf("volume %s after Delete: lookup err = %v, want ErrNoStorageVol", gone, err)
+			}
+		}
+		for _, kept := range []string{src.volumeName(), src.markerName()} {
+			if _, err := api.StorageVolLookupByName(pool, kept); err != nil {
+				t.Errorf("cached image volume %s: %v, want it kept after Delete", kept, err)
+			}
+		}
+		return nil
+	})
+	if err != nil {
+		t.Fatalf("inspecting pool after Delete: %v", err)
+	}
+	// KVM_TEST_KEEP is for inspecting a failed run; a passed run has
+	// nothing left to keep, so let cleanup's Delete confirm that.
+	env.keep = false
+}
+
+// waitForRunning polls Get until the instance is Running with an IP or ctx
+// ends. Transient errors are retried; anything else fails the test.
+func waitForRunning(ctx context.Context, t *testing.T, p *Provider, id string) *provider.Instance {
+	t.Helper()
+	var last provider.InstanceState
+	ticker := time.NewTicker(integrationPoll)
+	defer ticker.Stop()
+	for {
+		inst, err := p.Get(ctx, id)
+		switch {
+		case err == nil:
+			if inst.State != last {
+				t.Logf("state %s ip %q", inst.State, inst.IP)
+				last = inst.State
+			}
+			if inst.State == provider.StateRunning {
+				return inst
+			}
+			if inst.State == provider.StateStopped {
+				t.Fatalf("domain reported %s while waiting for Running; check `virsh console %s` on the host", inst.State, idName(id))
+			}
+		case errors.Is(err, provider.ErrTransient):
+			t.Logf("Get: transient error, retrying: %v", err)
+		default:
+			t.Fatalf("Get: %v", err)
+		}
+		select {
+		case <-ctx.Done():
+			t.Fatalf("timed out waiting for Running (last state %s): %v", last, ctx.Err())
+		case <-ticker.C:
+		}
+	}
+}
+
+func idName(id string) string {
+	_, name, _ := parseProviderID(id)
+	return name
+}
+
+func containsID(list []provider.Instance, id string) bool {
+	for _, inst := range list {
+		if inst.ID == id {
+			return true
+		}
+	}
+	return false
+}

internal/provider/kvm/kvm_test.go

@@ -20,7 +20,7 @@ func TestWithDefaults(t *testing.T) {
 	cfg := withDefaults(provider.KVMConfig{
 		Images: map[string]provider.KVMImage{
 			"debian": {URL: "https://x/d.qcow2"},
-			"raw":    {URL: "https://x/r.img", Format: "raw"},
+			"raw":    {URL: "https://x/r.img", Format: "raw", Firmware: "bios"},
 		},
 		Hosts: []provider.KVMHost{
 			{Name: "a", Address: "a:22", User: "virt", Bridge: "br0"},
@@ -30,12 +30,15 @@ func TestWithDefaults(t *testing.T) {
 	if cfg.DiskSizeGB != defaultDiskSizeGB {
 		t.Errorf("diskSizeGb = %d, want %d", cfg.DiskSizeGB, defaultDiskSizeGB)
 	}
-	if cfg.VendorData != defaultVendorData {
+	if cfg.VendorData != "" {
-		t.Errorf("vendorData = %q, want the default", cfg.VendorData)
+		t.Errorf("vendorData = %q, want none: the guest-agent bootstrap is merged into the user-data, not defaulted here", cfg.VendorData)
 	}
 	if cfg.Images["debian"].Format != "qcow2" || cfg.Images["raw"].Format != "raw" {
 		t.Errorf("image formats = %q/%q, want qcow2 default and raw kept", cfg.Images["debian"].Format, cfg.Images["raw"].Format)
 	}
+	if cfg.Images["debian"].Firmware != firmwareUEFI || cfg.Images["raw"].Firmware != firmwareBIOS {
+		t.Errorf("image firmware = %q/%q, want uefi default and bios kept", cfg.Images["debian"].Firmware, cfg.Images["raw"].Firmware)
+	}
 	if a := cfg.Hosts[0]; a.Socket != defaultSocket || a.Pool != defaultPool {
 		t.Errorf("host a = %+v, want default socket and pool", a)
 	}
@@ -92,7 +95,8 @@ func testConfig(hosts ...string) provider.ProviderConfig {
 }
 
 func newTestProvider(fakes hostFakes, hosts ...string) *Provider {
-	p := newWithDialer(testConfig(hosts...), fakes.dial, nil)
+	pc := testConfig(hosts...)
+	p := newWithDialer(pc.Name, *pc.KVM, fakes.dial, nil)
 	p.now = func() time.Time { return testNow }
 	return p
 }
@@ -100,7 +104,7 @@ func newTestProvider(fakes hostFakes, hosts ...string) *Provider {
 // cacheImage pre-populates the pool with the configured image and its
 // marker so Create never touches the network.
 func cacheImage(api *fakeAPI) {
-	src := imageSource{Key: "debian-13", URL: testImageURL, Format: formatQcow2}
+	src := imageSource{Key: "debian-13", KVMImage: provider.KVMImage{URL: testImageURL, Format: formatQcow2}}
 	api.putVol("default", src.volumeName(), formatQcow2, []byte("qcow2"))
 	api.putVol("default", src.markerName(), formatRaw, []byte(testImageSHA()))
 }
@@ -184,6 +188,13 @@ func assertCreated(t *testing.T, api *fakeAPI) {
 	if seed.format != formatRaw || len(seed.data) == 0 || int64(len(seed.data)) != seed.capacity {
 		t.Errorf("seed = format %s, %d bytes, capacity %d; want raw with capacity == uploaded size", seed.format, len(seed.data), seed.capacity)
 	}
+	_, files := readSeed(t, seed.data)
+	if files["user-data"] != testCloudInit {
+		t.Errorf("seed user-data = %q, want the Proxy's cloud-init verbatim", files["user-data"])
+	}
+	if !strings.Contains(files["vendor-data"], "qemu-guest-agent") {
+		t.Errorf("seed vendor-data = %q, want the guest-agent script", files["vendor-data"])
+	}
 }
 
 func TestCreate_freshHost(t *testing.T) {
@@ -210,6 +221,13 @@ func TestCreate_freshHost(t *testing.T) {
 	if d.Devices.Interfaces[0].Source.Bridge != "br0" {
 		t.Errorf("bridge = %q, want br0", d.Devices.Interfaces[0].Source.Bridge)
 	}
+	wantDisk, wantSeed := api.poolPath+"/"+overlayVolumeName(testName), api.poolPath+"/"+seedVolumeName(testName)
+	if got := d.Devices.Disks[0].Source.File; got != wantDisk {
+		t.Errorf("overlay disk source = %q, want the path libvirt reported, %q", got, wantDisk)
+	}
+	if got := d.Devices.Disks[1].Source.File; got != wantSeed {
+		t.Errorf("seed cdrom source = %q, want the path libvirt reported, %q", got, wantSeed)
+	}
 	if m := d.Metadata.Instance; m.UID != testUID || !m.managed() || !m.createdAt().Equal(testNow) {
 		t.Errorf("metadata = %+v, want managed, uid %s, createdAt %s", m, testUID, testNow)
 	}
@@ -224,7 +242,7 @@ func TestCreate_fetchesImageOnFirstUse(t *testing.T) {
 	api := newFakeAPI("default")
 	cfg := testConfig("nas1")
 	cfg.KVM.Images["debian-13"] = provider.KVMImage{URL: srv.URL + "/debian.qcow2", SHA256: testImageSHA()}
-	p := newWithDialer(cfg, hostFakes{"nas1": api}.dial, nil)
+	p := newWithDialer(cfg.Name, *cfg.KVM, hostFakes{"nas1": api}.dial, nil)
 
 	if _, err := p.Create(context.Background(), testRequest()); err != nil {
 		t.Fatalf("Create: %v", err)
@@ -462,28 +480,25 @@ func TestCreate_hostFailures(t *testing.T) {
 	t.Parallel()
 	cases := []struct {
 		name  string
-		setup func() (hostFakes, string)
+		setup func() hostFakes
 		class error
 	}{
 		{
 			name:  "host unreachable",
-			setup: func() (hostFakes, string) { return hostFakes{}, "nas1" },
+			setup: func() hostFakes { return hostFakes{} },
 			class: provider.ErrTransient,
 		},
 		{
-			name: "pool missing",
+			name:  "pool missing",
-			setup: func() (hostFakes, string) {
+			setup: func() hostFakes { return hostFakes{"nas1": newFakeAPI("other")} },
-				api := newFakeAPI("other")
-				return hostFakes{"nas1": api}, "nas1"
-			},
 			class: provider.ErrPermanent,
 		},
 		{
 			name: "domain xml rejected",
-			setup: func() (hostFakes, string) {
+			setup: func() hostFakes {
 				api := readyHost()
 				api.fail["DomainDefineXML"] = lvError(libvirt.ErrConfigUnsupported, "no q35 here")
-				return hostFakes{"nas1": api}, "nas1"
+				return hostFakes{"nas1": api}
 			},
 			class: provider.ErrPermanent,
 		},
@@ -491,8 +506,7 @@ func TestCreate_hostFailures(t *testing.T) {
 	for _, tc := range cases {
 		t.Run(tc.name, func(t *testing.T) {
 			t.Parallel()
-			fakes, host := tc.setup()
+			p := newTestProvider(tc.setup(), "nas1")
-			p := newTestProvider(fakes, host)
 			_, err := p.Create(context.Background(), testRequest())
 			wantClass(t, err, tc.class)
 		})
@@ -712,6 +726,28 @@ func TestDelete_missingPoolIsNotAnError(t *testing.T) {
 	}
 }
 
+// A host dropped from the config leaves the operator no way to reach the
+// domain, so Delete has nothing left to clean. Failing instead would pin
+// the Proxy's finalizer forever, since the reconciler's delete path cannot
+// make progress without a Delete that can succeed.
+func TestDelete_unconfiguredHostIsNotAnError(t *testing.T) {
+	t.Parallel()
+	api := readyHost()
+	managedDomain(t, api, testName, testUID, true, nil)
+	p := newTestProvider(hostFakes{"nas1": api}, "nas1")
+
+	if err := p.Delete(context.Background(), "hosts/nas9/domains/"+testName); err != nil {
+		t.Fatalf("Delete over an unconfigured host: %v", err)
+	}
+	if api.domain(testName) == nil {
+		t.Error("domain on the configured host was touched; only the named host's state may change")
+	}
+	// Get still refuses, so the live path cannot mistake a config typo for a
+	// missing VM and recreate it somewhere else.
+	_, err := p.Get(context.Background(), "hosts/nas9/domains/"+testName)
+	wantClass(t, err, provider.ErrPermanent)
+}
+
 func TestDelete_errors(t *testing.T) {
 	t.Parallel()
 	cases := []struct {
@@ -721,7 +757,6 @@ func TestDelete_errors(t *testing.T) {
 		class error
 	}{
 		{"malformed id", "nope", func(*testing.T) hostFakes { return hostFakes{"nas1": readyHost()} }, provider.ErrPermanent},
-		{"host not configured", "hosts/nas9/domains/x", func(*testing.T) hostFakes { return hostFakes{"nas1": readyHost()} }, provider.ErrPermanent},
 		{"host unreachable", "hosts/nas1/domains/x", func(*testing.T) hostFakes { return hostFakes{} }, provider.ErrTransient},
 		{
 			"undefine fails", "hosts/nas1/domains/" + testName,
@@ -870,11 +905,95 @@ func TestMapState(t *testing.T) {
 	}
 }
 
-func TestNew_badKeyPathFailsFast(t *testing.T) {
+// runAllOps drives one full lifecycle over a ready fake host so logging
+// tests see every provider method and every libvirt call.
+func runAllOps(t *testing.T, ctx context.Context, req provider.CreateRequest) {
+	t.Helper()
+	p := newTestProvider(hostFakes{"nas1": readyHost()}, "nas1")
+	id, err := p.Create(ctx, req)
+	if err != nil {
+		t.Fatalf("Create: %v", err)
+	}
+	if _, err := p.Get(ctx, id); err != nil {
+		t.Fatalf("Get: %v", err)
+	}
+	if _, err := p.ListByTag(ctx); err != nil {
+		t.Fatalf("ListByTag: %v", err)
+	}
+	if err := p.Delete(ctx, id); err != nil {
+		t.Fatalf("Delete: %v", err)
+	}
+}
+
+func TestLogging_verbosityTiers(t *testing.T) {
 	t.Parallel()
-	cfg := testConfig("nas1")
+	tests := []struct {
-	cfg.KVM.SSHKeyFile = t.TempDir() + "/missing"
+		name        string
-	if _, err := New(context.Background(), cfg); err == nil {
+		verbosity   int
-		t.Fatal("New succeeded with a missing key file")
+		wantLines   []string
+		absentLines []string
+	}{
+		{
+			name:        "v0 stays silent",
+			verbosity:   0,
+			absentLines: []string{"libvirt call", "KVM domain ensured running"},
+		},
+		{
+			name:      "v1 logs one line per libvirt call plus the operation outcomes",
+			verbosity: 1,
+			wantLines: []string{
+				`kvm/libvirt "level"=1 "msg"="libvirt host connected"`,
+				`"msg"="libvirt call"`,
+				`"rpc"="virDomainLookupByName"`,
+				`"libvirtError"="ErrNoDomain"`,
+				`"rpc"="virStorageVolUpload"`,
+				`"rpc"="virDomainDefineXML"`,
+				`"rpc"="virDomainCreate"`,
+				`"rpc"="virDomainInterfaceAddresses"`,
+				`"rpc"="virConnectListAllDomains"`,
+				`"rpc"="virDomainUndefineFlags"`,
+				`"rpc"="virStorageVolDelete"`,
+				`"provider"="kvm-home"`,
+				`"host"="nas1"`,
+				`"name"="` + testName + `"`,
+				`"msg"="KVM domain ensured running"`,
+			},
+			absentLines: []string{`"xml"=`, `"metadata"=`},
+		},
+		{
+			name:      "v2 adds xml, metadata and addresses on the same lines",
+			verbosity: 2,
+			wantLines: []string{`"xml"="<domain`, `"xml"="<volume`, `"metadata"="<instance`, `"names"=[`},
+		},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			ctx, snapshot := captureContext(tc.verbosity)
+			req := testRequest()
+			const sentinel = "SENTINEL-cloud-init-must-never-be-logged"
+			req.CloudInit = "#cloud-config\nhostname: " + sentinel + "\n"
+
+			runAllOps(t, ctx, req)
+
+			lines := snapshot()
+			joined := strings.Join(lines, "\n")
+			if tc.verbosity == 0 && len(lines) != 0 {
+				t.Errorf("verbosity 0 logged %d lines:\n%s", len(lines), joined)
+			}
+			for _, want := range tc.wantLines {
+				if !strings.Contains(joined, want) {
+					t.Errorf("output missing %s:\n%s", want, joined)
+				}
+			}
+			for _, absent := range tc.absentLines {
+				if strings.Contains(joined, absent) {
+					t.Errorf("output unexpectedly contains %s:\n%s", absent, joined)
+				}
+			}
+			if strings.Contains(joined, sentinel) {
+				t.Errorf("cloud-init content leaked into logs:\n%s", joined)
+			}
+		})
 	}
 }

internal/provider/kvm/metadata.go

@@ -31,15 +31,19 @@ func newInstanceMetadata(uid string, createdAt time.Time) instanceMetadata {
 }
 
 // parseInstanceMetadata decodes the element as DomainGetMetadata returns it.
-// libvirt may re-serialise it with a namespace prefix rather than the default
+// libvirt selects the element by namespace URI but serialises it without the
-// namespace it was defined with; encoding/xml matches on namespace URI, so
+// declaration (observed on libvirt 11.6: a bare <instance>), and other
-// both spellings decode.
+// versions may keep a default or prefixed form. The URI is already checked
+// by the lookup, so only the local name is matched here.
 func parseInstanceMetadata(s string) (instanceMetadata, error) {
-	var m instanceMetadata
+	var raw struct {
-	if err := xml.Unmarshal([]byte(s), &m); err != nil {
+		XMLName xml.Name `xml:"instance"`
+		instanceMetadata
+	}
+	if err := xml.Unmarshal([]byte(s), &raw); err != nil {
 		return instanceMetadata{}, fmt.Errorf("parsing domain metadata: %w", err)
 	}
-	return m, nil
+	return raw.instanceMetadata, nil
 }
 
 func (m instanceMetadata) managed() bool {

internal/provider/kvm/metadata_test.go

@@ -29,32 +29,37 @@ func TestInstanceMetadata_roundTrip(t *testing.T) {
 	}
 }
 
-func TestParseInstanceMetadata_libvirtPrefixedForm(t *testing.T) {
+func TestParseInstanceMetadata(t *testing.T) {
-	t.Parallel()
-	// libvirt re-serialises the stored element with whatever prefix it
-	// chooses; only the namespace URI is contractual.
-	in := `<op:instance xmlns:op="` + metadataURI + `">` +
-		`<op:managed>true</op:managed><op:uid>uid-2</op:uid>` +
-		`<op:createdAt>2026-09-04T10:00:00Z</op:createdAt></op:instance>`
-	m, err := parseInstanceMetadata(in)
-	if err != nil {
-		t.Fatalf("parseInstanceMetadata() error = %v", err)
-	}
-	if !m.managed() || m.UID != "uid-2" || m.createdAt().Hour() != 10 {
-		t.Errorf("parsed = %+v", m)
-	}
-}
-
-func TestParseInstanceMetadata_notManaged(t *testing.T) {
 	t.Parallel()
 	tests := []struct {
-		name    string
+		name        string
-		in      string
+		in          string
-		wantErr bool
+		wantErr     bool
+		wantManaged bool
+		wantUID     string
+		wantCreated time.Time
 	}{
-		{"managed false", `<instance xmlns="` + metadataURI + `"><managed>false</managed><uid>u</uid></instance>`, false},
+		{
-		{"foreign element", `<foo xmlns="urn:other"><managed>true</managed></foo>`, true},
+			// libvirt re-serialises the stored element with whatever prefix it
-		{"garbage", `not xml`, true},
+			// chooses; only the namespace URI is contractual.
+			name: "libvirt prefixed form",
+			in: `<op:instance xmlns:op="` + metadataURI + `">` +
+				`<op:managed>true</op:managed><op:uid>uid-2</op:uid>` +
+				`<op:createdAt>2026-09-04T10:00:00Z</op:createdAt></op:instance>`,
+			wantManaged: true, wantUID: "uid-2", wantCreated: time.Date(2026, 9, 4, 10, 0, 0, 0, time.UTC),
+		},
+		{
+			// What libvirt 11.6 actually returns from DomainGetMetadata: the
+			// element selected by our URI, serialised without any namespace
+			// declaration.
+			name: "libvirt bare form",
+			in: `<instance><managed>true</managed><uid>uid-3</uid>` +
+				`<createdAt>2026-09-10T07:30:00Z</createdAt></instance>`,
+			wantManaged: true, wantUID: "uid-3", wantCreated: time.Date(2026, 9, 10, 7, 30, 0, 0, time.UTC),
+		},
+		{name: "managed false", in: `<instance xmlns="` + metadataURI + `"><managed>false</managed><uid>u</uid></instance>`, wantUID: "u"},
+		{name: "foreign element", in: `<foo xmlns="urn:other"><managed>true</managed></foo>`, wantErr: true},
+		{name: "garbage", in: `not xml`, wantErr: true},
 	}
 	for _, tc := range tests {
 		t.Run(tc.name, func(t *testing.T) {
@@ -63,8 +68,8 @@ func TestParseInstanceMetadata_notManaged(t *testing.T) {
 			if (err != nil) != tc.wantErr {
 				t.Fatalf("error = %v, wantErr %v", err, tc.wantErr)
 			}
-			if m.managed() {
+			if m.managed() != tc.wantManaged || m.UID != tc.wantUID || !m.createdAt().Equal(tc.wantCreated) {
-				t.Errorf("managed() = true for %q", tc.in)
+				t.Errorf("parsed = %+v, want managed=%v uid=%q createdAt=%v", m, tc.wantManaged, tc.wantUID, tc.wantCreated)
 			}
 		})
 	}

internal/provider/kvm/seed.go

@@ -3,6 +3,9 @@ package kvm
 import (
 	"bytes"
 	"fmt"
+	"io"
+	"mime/multipart"
+	"net/textproto"
 	"strings"
 
 	"github.com/kdomanski/iso9660"
@@ -11,20 +14,97 @@ import (
 // seedLabel is the volume label cloud-init's NoCloud datasource looks for.
 const seedLabel = "cidata"
 
-// defaultVendorData is the cloud-init vendor-data shipped on every seed
+// guestAgentScript installs and starts the QEMU guest agent, which is how
-// unless the config overrides it. cloud-init merges it under the Proxy's own
+// the provider learns a VM's address before the host's ARP table has seen
-// user-data, so stock images grow a guest agent (which lets the provider
+// any traffic from it.
-// read the VM's IP before ARP sees traffic) without the user's cloud-init
+//
-// having to know about it.
+// It ships as vendor-data, and as a *script* rather than a cloud-config,
-const defaultVendorData = `#cloud-config
+// because that is the only shape cloud-init cannot drop. Vendor-data
-packages:
+// cloud-config is merged under the Proxy's own user-data with mergers that
-  - qemu-guest-agent
+// keep the user-data's value for every key both documents define and never
-runcmd:
+// append lists, so a Proxy carrying its own packages: silently lost the
-  - [systemctl, enable, --now, qemu-guest-agent]
+// agent. The strategy cannot be overridden from either document: merge_how
+// in user-data governs only the first source, and merge_how in vendor-data
+// is consumed and discarded before the document is stored. A vendor-data
+// script bypasses all of it — cloud-init gives vendor-data its own handler
+// chain, writes scripts to a separate directory and runs them from
+// cc_scripts_vendor, after the user's packages are installed and before the
+// user's runcmd.
+const guestAgentScript = `#!/bin/sh
+# Added by egress-proxies-operator so the hypervisor can report this VM's
+# address. Set installGuestAgent: false on the provider to leave it out.
+set -e
+if ! command -v qemu-ga >/dev/null 2>&1 && [ ! -x /usr/sbin/qemu-ga ]; then
+	if command -v apt-get >/dev/null 2>&1; then
+		apt-get update
+		DEBIAN_FRONTEND=noninteractive apt-get install -y qemu-guest-agent
+	elif command -v dnf >/dev/null 2>&1; then
+		dnf install -y qemu-guest-agent
+	elif command -v yum >/dev/null 2>&1; then
+		yum install -y qemu-guest-agent
+	elif command -v zypper >/dev/null 2>&1; then
+		zypper --non-interactive install qemu-guest-agent
+	elif command -v apk >/dev/null 2>&1; then
+		apk add qemu-guest-agent
+	else
+		echo "no known package manager; install qemu-guest-agent in the image" >&2
+		exit 1
+	fi
+fi
+if command -v systemctl >/dev/null 2>&1; then
+	systemctl enable --now qemu-guest-agent
+elif command -v rc-update >/dev/null 2>&1; then
+	rc-update add qemu-guest-agent default
+	rc-service qemu-guest-agent start
+fi
 `
 
-// buildSeedISO renders a NoCloud seed: user-data verbatim, vendor-data as
+// buildVendorData renders the seed's vendor-data. With nothing configured
-// given, and a meta-data whose instance-id is the deterministic VM name, so
+// it is the guest-agent script alone; with both, a MIME multipart carrying
+// the configured document and the script as separate parts, since
+// vendor-data is a single file and the two must not be concatenated.
+func buildVendorData(configured string, installAgent bool) (string, error) {
+	switch {
+	case !installAgent:
+		return configured, nil
+	case strings.TrimSpace(configured) == "":
+		return guestAgentScript, nil
+	default:
+		return multipartVendorData(configured, guestAgentScript)
+	}
+}
+
+// multipartVendorData packs several documents into one vendor-data blob.
+// cloud-init decides a payload is multipart by finding "mime-version:"
+// within its first 4096 bytes, so those headers lead. The configured
+// document goes in as text/plain on purpose: cloud-init re-sniffs that type
+// from the content's own header line, which keeps this code out of the
+// business of classifying what the user wrote.
+func multipartVendorData(configured, script string) (string, error) {
+	var body bytes.Buffer
+	w := multipart.NewWriter(&body)
+	parts := []struct{ contentType, content string }{
+		{"text/plain", configured},
+		{"text/x-shellscript", script},
+	}
+	for _, p := range parts {
+		part, err := w.CreatePart(textproto.MIMEHeader{"Content-Type": {p.contentType}})
+		if err != nil {
+			return "", fmt.Errorf("building vendor-data part: %w", err)
+		}
+		if _, err := io.WriteString(part, p.content); err != nil {
+			return "", fmt.Errorf("writing vendor-data part: %w", err)
+		}
+	}
+	if err := w.Close(); err != nil {
+		return "", fmt.Errorf("closing vendor-data: %w", err)
+	}
+	return fmt.Sprintf("MIME-Version: 1.0\r\nContent-Type: multipart/mixed; boundary=%q\r\n\r\n%s",
+		w.Boundary(), body.String()), nil
+}
+
+// buildSeedISO renders a NoCloud seed: user-data and vendor-data verbatim,
+// and a meta-data whose instance-id is the deterministic VM name, so
 // cloud-init never mistakes a reboot for a new instance. The ISO's volume
 // descriptor carries the build time, so two builds differ in a few
 // timestamp bytes; the files and label are identical.

internal/provider/kvm/seed_test.go

@@ -4,6 +4,8 @@ import (
 	"bytes"
 	"io"
 	"maps"
+	"mime"
+	"mime/multipart"
 	"strings"
 	"testing"
 
@@ -42,7 +44,7 @@ func readSeed(t *testing.T, iso []byte) (label string, files map[string]string)
 func TestBuildSeedISO_contents(t *testing.T) {
 	t.Parallel()
 	userData := "#cloud-config\npackages: [squid]\n"
-	iso, err := buildSeedISO("proxy-abc123def456ghij", userData, defaultVendorData)
+	iso, err := buildSeedISO("proxy-abc123def456ghij", userData, guestAgentScript)
 	if err != nil {
 		t.Fatalf("buildSeedISO() error = %v", err)
 	}
@@ -56,7 +58,7 @@ func TestBuildSeedISO_contents(t *testing.T) {
 	if files["user-data"] != userData {
 		t.Errorf("user-data = %q, want verbatim cloud-init", files["user-data"])
 	}
-	if files["vendor-data"] != defaultVendorData {
+	if files["vendor-data"] != guestAgentScript {
 		t.Errorf("vendor-data = %q", files["vendor-data"])
 	}
 	if got, want := files["meta-data"], "instance-id: proxy-abc123def456ghij\nlocal-hostname: proxy-abc123def456ghij\n"; got != want {
@@ -89,7 +91,7 @@ func TestBuildSeedISO_deterministicContent(t *testing.T) {
 
 func TestBuildSeedISO_emptyUserData(t *testing.T) {
 	t.Parallel()
-	iso, err := buildSeedISO("proxy-x", "", defaultVendorData)
+	iso, err := buildSeedISO("proxy-x", "", guestAgentScript)
 	if err != nil {
 		t.Fatalf("buildSeedISO() error = %v", err)
 	}
@@ -98,3 +100,134 @@ func TestBuildSeedISO_emptyUserData(t *testing.T) {
 		t.Errorf("user-data = %q (present=%v), want an empty file to still exist", body, ok)
 	}
 }
+
+// The whole point of shipping the agent as vendor-data: whatever the Proxy
+// wrote reaches the guest untouched, in any of cloud-init's formats. The
+// previous implementation parsed and re-rendered cloud-config user-data,
+// which dropped comments, reordered keys and re-typed unquoted scalars
+// (version: 1.10 arrived as 1.1).
+func TestBuildSeedISO_userDataIsNeverRewritten(t *testing.T) {
+	t.Parallel()
+	tests := []struct {
+		name     string
+		userData string
+	}{
+		{"cloud-config with its own packages", "#cloud-config\n# keep me\npackages:\n  - squid\nversion: 1.10\nchpasswd: {list: 'u:0123456789'}\n"},
+		{"jinja template", "## template: jinja\n#cloud-config\nhostname: {{ v1.local_hostname }}\n"},
+		{"shell script", "#!/bin/sh\napt-get install -y squid\n"},
+		{"include", "#include\nhttps://example.invalid/x\n"},
+		{"mime multipart", "MIME-Version: 1.0\r\nContent-Type: multipart/mixed; boundary=\"x\"\r\n\r\n--x\r\nContent-Type: text/cloud-config\r\n\r\n#cloud-config\npackages: [squid]\n\r\n--x--\r\n"},
+		{"gzip payload", "\x1f\x8b\x08\x00\x00\x00\x00\x00\x00\x03binary\x00bytes"},
+		{"leading blank line", "\n\n#cloud-config\npackages: [squid]\n"},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			vendor, err := buildVendorData("", true)
+			if err != nil {
+				t.Fatalf("buildVendorData() error = %v", err)
+			}
+			iso, err := buildSeedISO("proxy-x", tc.userData, vendor)
+			if err != nil {
+				t.Fatalf("buildSeedISO() error = %v", err)
+			}
+			_, files := readSeed(t, iso)
+			if files["user-data"] != tc.userData {
+				t.Errorf("user-data was rewritten:\n got %q\nwant %q", files["user-data"], tc.userData)
+			}
+			if !strings.Contains(files["vendor-data"], "qemu-guest-agent") {
+				t.Errorf("vendor-data = %q, want the agent script", files["vendor-data"])
+			}
+		})
+	}
+}
+
+func TestBuildVendorData_agentScriptAlone(t *testing.T) {
+	t.Parallel()
+	got, err := buildVendorData("", true)
+	if err != nil {
+		t.Fatalf("buildVendorData() error = %v", err)
+	}
+	if got != guestAgentScript {
+		t.Errorf("vendor-data = %q, want the bare script", got)
+	}
+	if !strings.HasPrefix(got, "#!") {
+		t.Error("vendor-data must start with a shebang or cloud-init treats it as something other than a script")
+	}
+}
+
+func TestBuildVendorData_optOutKeepsConfiguredOnly(t *testing.T) {
+	t.Parallel()
+	configured := "#cloud-config\nntp: {enabled: true}\n"
+	tests := []struct {
+		name       string
+		configured string
+		want       string
+	}{
+		{"nothing configured", "", ""},
+		{"configured document passes through", configured, configured},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			got, err := buildVendorData(tc.configured, false)
+			if err != nil {
+				t.Fatalf("buildVendorData() error = %v", err)
+			}
+			if got != tc.want {
+				t.Errorf("vendor-data = %q, want %q", got, tc.want)
+			}
+			if strings.Contains(got, "qemu-guest-agent") {
+				t.Error("agent script present although installGuestAgent is off")
+			}
+		})
+	}
+}
+
+// Both documents have to survive in one file, and cloud-init only looks for
+// the multipart marker in the first 4096 bytes.
+func TestBuildVendorData_multipartCarriesBoth(t *testing.T) {
+	t.Parallel()
+	configured := "#cloud-config\nntp:\n  enabled: true\n"
+	got, err := buildVendorData(configured, true)
+	if err != nil {
+		t.Fatalf("buildVendorData() error = %v", err)
+	}
+	head := got
+	if len(head) > 4096 {
+		head = head[:4096]
+	}
+	if !strings.Contains(strings.ToLower(head), "mime-version:") {
+		t.Fatalf("no mime-version: in the first 4096 bytes; cloud-init would treat this as a single document:\n%s", head)
+	}
+	_, params, err := mime.ParseMediaType(strings.SplitN(got, "\r\n\r\n", 2)[0][strings.Index(got, "Content-Type:")+len("Content-Type: "):])
+	if err != nil {
+		t.Fatalf("parsing the multipart content type: %v", err)
+	}
+	body := strings.SplitN(got, "\r\n\r\n", 2)[1]
+	r := multipart.NewReader(strings.NewReader(body), params["boundary"])
+	var bodies, types []string
+	for {
+		part, err := r.NextPart()
+		if err == io.EOF {
+			break
+		}
+		if err != nil {
+			t.Fatalf("reading part: %v", err)
+		}
+		content, err := io.ReadAll(part)
+		if err != nil {
+			t.Fatalf("reading part body: %v", err)
+		}
+		bodies = append(bodies, string(content))
+		types = append(types, part.Header.Get("Content-Type"))
+	}
+	if len(bodies) != 2 || bodies[0] != configured || bodies[1] != guestAgentScript {
+		t.Fatalf("parts = %q, want the configured document then the script", bodies)
+	}
+	// text/plain makes cloud-init re-sniff the user's document from its own
+	// header line, so this code never has to classify it.
+	if types[0] != "text/plain" || types[1] != "text/x-shellscript" {
+		t.Errorf("part types = %v, want [text/plain text/x-shellscript]", types)
+	}
+}

internal/provider/kvm/trace.go

@@ -0,0 +1,211 @@
+package kvm
+
+import (
+	"fmt"
+	"io"
+	"time"
+
+	libvirt "github.com/digitalocean/go-libvirt"
+	"github.com/go-logr/logr"
+)
+
+// tracingAPI wraps a libvirtAPI and logs one V(1) line per call after it
+// returns: the libvirt API function (rpc=virDomainLookupByName, ...), the
+// identifiers it was given, curated results, duration, and on failure the
+// error with libvirt's code name. At V(2) the same line also carries XML
+// bodies, metadata and address lists. Upload and download bodies are never
+// logged: the seed ISO carries cloud-init.
+type tracingAPI struct {
+	inner libvirtAPI
+	log   logr.Logger
+}
+
+type tracedCall struct {
+	t      *tracingAPI
+	method string
+	start  time.Time
+	kv     []any
+}
+
+// begin names the call by its libvirt API function: go-libvirt's method
+// names are the remote procedure names, which are the public vir* API
+// names without the prefix.
+func (t *tracingAPI) begin(method string, kv ...any) *tracedCall {
+	return &tracedCall{t: t, method: "vir" + method, start: time.Now(), kv: kv}
+}
+
+// detail adds key/values that are only worth the bytes at V(2).
+func (c *tracedCall) detail(kv ...any) *tracedCall {
+	if c.t.log.V(2).Enabled() {
+		c.kv = append(c.kv, kv...)
+	}
+	return c
+}
+
+func (c *tracedCall) done(err error, kv ...any) {
+	fields := make([]any, 0, 2+len(c.kv)+len(kv)+10)
+	fields = append(fields, "rpc", c.method)
+	fields = append(fields, c.kv...)
+	fields = append(fields, kv...)
+	fields = append(fields, "duration", time.Since(c.start).Round(time.Microsecond))
+	if err != nil {
+		fields = append(fields, "error", err.Error())
+		fields = append(fields, libvirtErrorFields(err)...)
+	}
+	c.t.log.V(1).Info("libvirt call", fields...)
+}
+
+// flagKV renders a flags value only when something is set; go-libvirt's
+// generated stringers do not know bitmask combinations.
+func flagKV(v int64) []any {
+	if v == 0 {
+		return nil
+	}
+	return []any{"flags", v}
+}
+
+func optString(s libvirt.OptString) string {
+	if len(s) == 0 {
+		return ""
+	}
+	return s[0]
+}
+
+func (t *tracingAPI) DomainLookupByName(name string) (libvirt.Domain, error) {
+	c := t.begin("DomainLookupByName", "domain", name)
+	d, err := t.inner.DomainLookupByName(name)
+	c.done(err)
+	return d, err
+}
+
+func (t *tracingAPI) DomainDefineXML(xml string) (libvirt.Domain, error) {
+	c := t.begin("DomainDefineXML", "xmlBytes", len(xml)).detail("xml", xml)
+	d, err := t.inner.DomainDefineXML(xml)
+	c.done(err, "domain", d.Name)
+	return d, err
+}
+
+func (t *tracingAPI) DomainCreate(d libvirt.Domain) error {
+	c := t.begin("DomainCreate", "domain", d.Name)
+	err := t.inner.DomainCreate(d)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) DomainDestroy(d libvirt.Domain) error {
+	c := t.begin("DomainDestroy", "domain", d.Name)
+	err := t.inner.DomainDestroy(d)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) DomainUndefineFlags(d libvirt.Domain, flags libvirt.DomainUndefineFlagsValues) error {
+	c := t.begin("DomainUndefineFlags", append([]any{"domain", d.Name}, flagKV(int64(flags))...)...)
+	err := t.inner.DomainUndefineFlags(d, flags)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) DomainGetState(d libvirt.Domain, flags uint32) (int32, int32, error) {
+	c := t.begin("DomainGetState", "domain", d.Name)
+	state, reason, err := t.inner.DomainGetState(d, flags)
+	c.done(err, "state", libvirt.DomainState(state), "reason", reason)
+	return state, reason, err
+}
+
+func (t *tracingAPI) DomainGetMetadata(d libvirt.Domain, typ int32, uri libvirt.OptString, flags libvirt.DomainModificationImpact) (string, error) {
+	c := t.begin("DomainGetMetadata", "domain", d.Name, "type", typ, "uri", optString(uri))
+	s, err := t.inner.DomainGetMetadata(d, typ, uri, flags)
+	c.detail("metadata", s).done(err, "metadataBytes", len(s))
+	return s, err
+}
+
+func (t *tracingAPI) DomainInterfaceAddresses(d libvirt.Domain, source uint32, flags uint32) ([]libvirt.DomainInterface, error) {
+	c := t.begin("DomainInterfaceAddresses", "domain", d.Name, "source", libvirt.DomainInterfaceAddressesSource(source))
+	ifaces, err := t.inner.DomainInterfaceAddresses(d, source, flags)
+	if t.log.V(2).Enabled() {
+		c.detail("addresses", formatAddresses(ifaces))
+	}
+	c.done(err, "interfaces", len(ifaces))
+	return ifaces, err
+}
+
+func formatAddresses(ifaces []libvirt.DomainInterface) []string {
+	var out []string
+	for _, iface := range ifaces {
+		for _, a := range iface.Addrs {
+			out = append(out, fmt.Sprintf("%s=%s/%d", iface.Name, a.Addr, a.Prefix))
+		}
+	}
+	return out
+}
+
+func (t *tracingAPI) ConnectListAllDomains(needResults int32, flags libvirt.ConnectListAllDomainsFlags) ([]libvirt.Domain, uint32, error) {
+	c := t.begin("ConnectListAllDomains", flagKV(int64(flags))...)
+	doms, n, err := t.inner.ConnectListAllDomains(needResults, flags)
+	if t.log.V(2).Enabled() {
+		names := make([]string, 0, len(doms))
+		for _, d := range doms {
+			names = append(names, d.Name)
+		}
+		c.detail("names", names)
+	}
+	c.done(err, "count", len(doms))
+	return doms, n, err
+}
+
+func (t *tracingAPI) StoragePoolLookupByName(name string) (libvirt.StoragePool, error) {
+	c := t.begin("StoragePoolLookupByName", "pool", name)
+	pool, err := t.inner.StoragePoolLookupByName(name)
+	c.done(err)
+	return pool, err
+}
+
+func (t *tracingAPI) StoragePoolRefresh(pool libvirt.StoragePool, flags uint32) error {
+	c := t.begin("StoragePoolRefresh", "pool", pool.Name)
+	err := t.inner.StoragePoolRefresh(pool, flags)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) StorageVolLookupByName(pool libvirt.StoragePool, name string) (libvirt.StorageVol, error) {
+	c := t.begin("StorageVolLookupByName", "pool", pool.Name, "volume", name)
+	vol, err := t.inner.StorageVolLookupByName(pool, name)
+	c.done(err)
+	return vol, err
+}
+
+func (t *tracingAPI) StorageVolGetPath(vol libvirt.StorageVol) (string, error) {
+	c := t.begin("StorageVolGetPath", "pool", vol.Pool, "volume", vol.Name)
+	path, err := t.inner.StorageVolGetPath(vol)
+	c.done(err, "path", path)
+	return path, err
+}
+
+func (t *tracingAPI) StorageVolCreateXML(pool libvirt.StoragePool, xml string, flags libvirt.StorageVolCreateFlags) (libvirt.StorageVol, error) {
+	c := t.begin("StorageVolCreateXML", append([]any{"pool", pool.Name, "xmlBytes", len(xml)}, flagKV(int64(flags))...)...).detail("xml", xml)
+	vol, err := t.inner.StorageVolCreateXML(pool, xml, flags)
+	c.done(err, "volume", vol.Name)
+	return vol, err
+}
+
+func (t *tracingAPI) StorageVolUpload(vol libvirt.StorageVol, r io.Reader, offset, length uint64, flags libvirt.StorageVolUploadFlags) error {
+	c := t.begin("StorageVolUpload", append([]any{"pool", vol.Pool, "volume", vol.Name, "offset", offset, "length", length}, flagKV(int64(flags))...)...)
+	err := t.inner.StorageVolUpload(vol, r, offset, length, flags)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) StorageVolDownload(vol libvirt.StorageVol, w io.Writer, offset, length uint64, flags libvirt.StorageVolDownloadFlags) error {
+	c := t.begin("StorageVolDownload", append([]any{"pool", vol.Pool, "volume", vol.Name, "offset", offset, "length", length}, flagKV(int64(flags))...)...)
+	err := t.inner.StorageVolDownload(vol, w, offset, length, flags)
+	c.done(err)
+	return err
+}
+
+func (t *tracingAPI) StorageVolDelete(vol libvirt.StorageVol, flags libvirt.StorageVolDeleteFlags) error {
+	c := t.begin("StorageVolDelete", append([]any{"pool", vol.Pool, "volume", vol.Name}, flagKV(int64(flags))...)...)
+	err := t.inner.StorageVolDelete(vol, flags)
+	c.done(err)
+	return err
+}

internal/provider/kvm/trace_test.go

@@ -0,0 +1,300 @@
+package kvm
+
+import (
+	"bytes"
+	"context"
+	"errors"
+	"io"
+	"reflect"
+	"strings"
+	"sync"
+	"testing"
+
+	libvirt "github.com/digitalocean/go-libvirt"
+	"github.com/go-logr/logr"
+	"github.com/go-logr/logr/funcr"
+)
+
+// captureLogger returns a funcr logger capped at verbosity (the test
+// stand-in for --zap-log-level=<verbosity>) and a snapshot function for the
+// lines it recorded. The sink is mutex-guarded: a cancelled call logs from
+// the abandoned goroutine.
+func captureLogger(verbosity int) (logr.Logger, func() []string) {
+	var mu sync.Mutex
+	var lines []string
+	log := funcr.New(func(prefix, args string) {
+		mu.Lock()
+		defer mu.Unlock()
+		lines = append(lines, prefix+" "+args)
+	}, funcr.Options{Verbosity: verbosity})
+	return log, func() []string {
+		mu.Lock()
+		defer mu.Unlock()
+		return append([]string(nil), lines...)
+	}
+}
+
+func captureContext(verbosity int) (context.Context, func() []string) {
+	log, snapshot := captureLogger(verbosity)
+	return logr.NewContext(context.Background(), log), snapshot
+}
+
+const stoppedName = "proxy-stopped"
+
+// tracedHost is a fake with one managed running domain and its volumes, so
+// every method of the seam has something to act on.
+func tracedHost(t *testing.T) *fakeAPI {
+	t.Helper()
+	api := readyHost()
+	managedDomain(t, api, testName, testUID, true, map[uint32][]libvirt.DomainInterface{
+		uint32(libvirt.DomainInterfaceAddressesSrcArp): {{Name: "vnet0", Addrs: []libvirt.DomainIPAddr{ipv4("192.168.1.50")}}},
+	})
+	api.putDomain(&fakeDomain{name: stoppedName})
+	return api
+}
+
+func TestTracingAPI_logsEveryMethod(t *testing.T) {
+	t.Parallel()
+	pool := libvirt.StoragePool{Name: "default"}
+	dom := libvirt.Domain{Name: testName}
+	overlay := libvirt.StorageVol{Pool: "default", Name: overlayVolumeName(testName)}
+	cases := []struct {
+		method string
+		call   func(api libvirtAPI) error
+	}{
+		{"DomainLookupByName", func(api libvirtAPI) error { _, err := api.DomainLookupByName(testName); return err }},
+		{"DomainDefineXML", func(api libvirtAPI) error {
+			xml, err := buildDomainXML(testDomainParams())
+			if err != nil {
+				return err
+			}
+			_, err = api.DomainDefineXML(xml)
+			return err
+		}},
+		{"DomainCreate", func(api libvirtAPI) error { return api.DomainCreate(libvirt.Domain{Name: stoppedName}) }},
+		{"DomainDestroy", func(api libvirtAPI) error { return api.DomainDestroy(dom) }},
+		{"DomainUndefineFlags", func(api libvirtAPI) error { return api.DomainUndefineFlags(dom, undefineFlags) }},
+		{"DomainGetState", func(api libvirtAPI) error { _, _, err := api.DomainGetState(dom, 0); return err }},
+		{"DomainGetMetadata", func(api libvirtAPI) error {
+			_, err := api.DomainGetMetadata(dom, int32(libvirt.DomainMetadataElement), libvirt.OptString{metadataURI}, 0)
+			return err
+		}},
+		{"DomainInterfaceAddresses", func(api libvirtAPI) error {
+			_, err := api.DomainInterfaceAddresses(dom, uint32(libvirt.DomainInterfaceAddressesSrcArp), 0)
+			return err
+		}},
+		{"ConnectListAllDomains", func(api libvirtAPI) error { _, _, err := api.ConnectListAllDomains(1, 0); return err }},
+		{"StoragePoolLookupByName", func(api libvirtAPI) error { _, err := api.StoragePoolLookupByName("default"); return err }},
+		{"StoragePoolRefresh", func(api libvirtAPI) error { return api.StoragePoolRefresh(pool, 0) }},
+		{"StorageVolLookupByName", func(api libvirtAPI) error { _, err := api.StorageVolLookupByName(pool, overlay.Name); return err }},
+		{"StorageVolGetPath", func(api libvirtAPI) error { _, err := api.StorageVolGetPath(overlay); return err }},
+		{"StorageVolCreateXML", func(api libvirtAPI) error {
+			xml, err := buildVolumeXML(rawVolume("new.iso", 3))
+			if err != nil {
+				return err
+			}
+			_, err = api.StorageVolCreateXML(pool, xml, 0)
+			return err
+		}},
+		{"StorageVolUpload", func(api libvirtAPI) error {
+			return api.StorageVolUpload(overlay, strings.NewReader("abc"), 0, 3, 0)
+		}},
+		{"StorageVolDownload", func(api libvirtAPI) error {
+			return api.StorageVolDownload(overlay, io.Discard, 0, 0, 0)
+		}},
+		{"StorageVolDelete", func(api libvirtAPI) error { return api.StorageVolDelete(overlay, 0) }},
+	}
+	if n := reflect.TypeOf((*libvirtAPI)(nil)).Elem().NumMethod(); n != len(cases) {
+		t.Fatalf("libvirtAPI has %d methods, this test covers %d; trace the new one", n, len(cases))
+	}
+	for _, tc := range cases {
+		t.Run(tc.method, func(t *testing.T) {
+			t.Parallel()
+			log, snapshot := captureLogger(1)
+			api := &tracingAPI{inner: tracedHost(t), log: log}
+			if err := tc.call(api); err != nil {
+				t.Fatalf("%s: %v", tc.method, err)
+			}
+			lines := snapshot()
+			if len(lines) != 1 {
+				t.Fatalf("logged %d lines, want exactly 1:\n%s", len(lines), strings.Join(lines, "\n"))
+			}
+			for _, want := range []string{`"msg"="libvirt call"`, `"rpc"="vir` + tc.method + `"`, `"duration"=`} {
+				if !strings.Contains(lines[0], want) {
+					t.Errorf("line missing %s:\n%s", want, lines[0])
+				}
+			}
+			if strings.Contains(lines[0], `"error"=`) {
+				t.Errorf("successful call logged an error:\n%s", lines[0])
+			}
+		})
+	}
+}
+
+func TestTracingAPI_passesResultsThrough(t *testing.T) {
+	t.Parallel()
+	inner := tracedHost(t)
+	log, _ := captureLogger(1)
+	traced := &tracingAPI{inner: inner, log: log}
+	dom := libvirt.Domain{Name: testName}
+
+	wantState, wantReason, err := inner.DomainGetState(dom, 0)
+	if err != nil {
+		t.Fatal(err)
+	}
+	state, reason, err := traced.DomainGetState(dom, 0)
+	if err != nil || state != wantState || reason != wantReason {
+		t.Errorf("DomainGetState = %d/%d/%v, want %d/%d/nil", state, reason, err, wantState, wantReason)
+	}
+
+	overlay := libvirt.StorageVol{Pool: "default", Name: overlayVolumeName(testName)}
+	wantPath, _ := inner.StorageVolGetPath(overlay)
+	if path, err := traced.StorageVolGetPath(overlay); err != nil || path != wantPath {
+		t.Errorf("StorageVolGetPath = %q/%v, want %q", path, err, wantPath)
+	}
+
+	wantDoms, _, _ := inner.ConnectListAllDomains(1, 0)
+	doms, _, err := traced.ConnectListAllDomains(1, 0)
+	if err != nil || !reflect.DeepEqual(doms, wantDoms) {
+		t.Errorf("ConnectListAllDomains = %v/%v, want %v", doms, err, wantDoms)
+	}
+
+	inner.fail["DomainCreate"] = lvError(libvirt.ErrOperationInvalid, "already running")
+	if err := traced.DomainCreate(dom); !hasCode(err, libvirt.ErrOperationInvalid) {
+		t.Errorf("DomainCreate error = %v, want the injected libvirt error unchanged", err)
+	}
+}
+
+func TestTracingAPI_errorFields(t *testing.T) {
+	t.Parallel()
+	tests := []struct {
+		name    string
+		inject  error
+		want    []string
+		notWant []string
+	}{
+		{
+			name:   "libvirt error carries code, name and message",
+			inject: lvError(libvirt.ErrNoDomain, "Domain not found: no domain with matching name"),
+			want:   []string{`"error"="Domain not found`, `"libvirtError"="ErrNoDomain"`, `"libvirtCode"=42`},
+		},
+		{
+			name:    "transport error has no libvirt fields",
+			inject:  io.EOF,
+			want:    []string{`"error"="EOF"`},
+			notWant: []string{`"libvirtError"`, `"libvirtCode"`},
+		},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			inner := tracedHost(t)
+			inner.fail["DomainLookupByName"] = tc.inject
+			log, snapshot := captureLogger(1)
+			api := &tracingAPI{inner: inner, log: log}
+			if _, err := api.DomainLookupByName(testName); !errors.Is(err, tc.inject) {
+				t.Fatalf("error = %v, want the injected one", err)
+			}
+			joined := strings.Join(snapshot(), "\n")
+			for _, want := range tc.want {
+				if !strings.Contains(joined, want) {
+					t.Errorf("output missing %s:\n%s", want, joined)
+				}
+			}
+			for _, absent := range tc.notWant {
+				if strings.Contains(joined, absent) {
+					t.Errorf("output unexpectedly contains %s:\n%s", absent, joined)
+				}
+			}
+		})
+	}
+}
+
+func TestTracingAPI_detailOnlyAtV2(t *testing.T) {
+	t.Parallel()
+	dom := libvirt.Domain{Name: testName}
+	calls := []struct {
+		method string
+		call   func(api libvirtAPI) error
+		always string
+		detail string
+	}{
+		{"DomainDefineXML", func(api libvirtAPI) error {
+			xml, err := buildDomainXML(testDomainParams())
+			if err != nil {
+				return err
+			}
+			_, err = api.DomainDefineXML(xml)
+			return err
+		}, `"xmlBytes"=`, `"xml"="<domain`},
+		{"StorageVolCreateXML", func(api libvirtAPI) error {
+			xml, err := buildVolumeXML(rawVolume("new.iso", 3))
+			if err != nil {
+				return err
+			}
+			_, err = api.StorageVolCreateXML(libvirt.StoragePool{Name: "default"}, xml, 0)
+			return err
+		}, `"xmlBytes"=`, `"xml"="<volume`},
+		{"DomainGetMetadata", func(api libvirtAPI) error {
+			_, err := api.DomainGetMetadata(dom, int32(libvirt.DomainMetadataElement), libvirt.OptString{metadataURI}, 0)
+			return err
+		}, `"metadataBytes"=`, `"metadata"="<instance`},
+		{"DomainInterfaceAddresses", func(api libvirtAPI) error {
+			_, err := api.DomainInterfaceAddresses(dom, uint32(libvirt.DomainInterfaceAddressesSrcArp), 0)
+			return err
+		}, `"interfaces"=1`, `"addresses"=["vnet0=192.168.1.50/24"]`},
+		{"ConnectListAllDomains", func(api libvirtAPI) error {
+			_, _, err := api.ConnectListAllDomains(1, 0)
+			return err
+		}, `"count"=2`, `"names"=[`},
+	}
+	for _, verbosity := range []int{1, 2} {
+		for _, tc := range calls {
+			t.Run(tc.method+"/v"+string(rune('0'+verbosity)), func(t *testing.T) {
+				t.Parallel()
+				log, snapshot := captureLogger(verbosity)
+				api := &tracingAPI{inner: tracedHost(t), log: log}
+				if err := tc.call(api); err != nil {
+					t.Fatal(err)
+				}
+				joined := strings.Join(snapshot(), "\n")
+				if !strings.Contains(joined, tc.always) {
+					t.Errorf("v%d output missing %s:\n%s", verbosity, tc.always, joined)
+				}
+				if has := strings.Contains(joined, tc.detail); has != (verbosity >= 2) {
+					t.Errorf("v%d output contains %s = %v, want %v:\n%s", verbosity, tc.detail, has, verbosity >= 2, joined)
+				}
+			})
+		}
+	}
+}
+
+func TestTracingAPI_uploadLogsSizeNotContent(t *testing.T) {
+	t.Parallel()
+	const sentinel = "SENTINEL-seed-content-must-never-be-logged"
+	log, snapshot := captureLogger(2)
+	api := &tracingAPI{inner: tracedHost(t), log: log}
+	vol := libvirt.StorageVol{Pool: "default", Name: seedVolumeName(testName)}
+	if err := api.StorageVolUpload(vol, bytes.NewReader([]byte(sentinel)), 0, uint64(len(sentinel)), 0); err != nil {
+		t.Fatal(err)
+	}
+	joined := strings.Join(snapshot(), "\n")
+	if !strings.Contains(joined, `"length"=42`) {
+		t.Errorf("upload line missing the length:\n%s", joined)
+	}
+	if strings.Contains(joined, sentinel) {
+		t.Errorf("upload content leaked into logs:\n%s", joined)
+	}
+}
+
+func TestTracingAPI_silentBelowV1(t *testing.T) {
+	t.Parallel()
+	log, snapshot := captureLogger(0)
+	api := &tracingAPI{inner: tracedHost(t), log: log}
+	if _, err := api.DomainLookupByName(testName); err != nil {
+		t.Fatal(err)
+	}
+	if lines := snapshot(); len(lines) != 0 {
+		t.Errorf("verbosity 0 logged %d lines:\n%s", len(lines), strings.Join(lines, "\n"))
+	}
+}

internal/provider/metrics.go

@@ -50,17 +50,25 @@ func (i *instrumented) record(op string, err error) {
 	i.rec.ProviderRequest(i.name, op, resultLabel(err))
 }
 
+const (
+	resultOK            = "ok"
+	resultNotFound      = "not_found"
+	resultQuotaExceeded = "quota_exceeded"
+	resultPermanent     = "permanent"
+	resultTransient     = "transient"
+)
+
 func resultLabel(err error) string {
 	switch Class(err) {
 	case nil:
-		return "ok"
+		return resultOK
 	case ErrNotFound:
-		return "not_found"
+		return resultNotFound
 	case ErrQuotaExceeded:
-		return "quota_exceeded"
+		return resultQuotaExceeded
 	case ErrPermanent:
-		return "permanent"
+		return resultPermanent
 	default:
-		return "transient"
+		return resultTransient
 	}
 }

internal/provider/tracing.go

@@ -0,0 +1,80 @@
+package provider
+
+import (
+	"context"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
+)
+
+// WithTracing wraps a Provider so every call runs in a client span carrying
+// the classified result, mirroring WithMetrics. It goes through
+// tracing.StartSpan, so provider-internal logs (e.g. the gcp provider's
+// context logger) inherit traceID/spanID. Errors pass through unmodified.
+func WithTracing(name string, p Provider, opts ...tracing.Option) Provider {
+	return &traced{name: name, inner: p, tracer: tracing.Tracer(opts...)}
+}
+
+type traced struct {
+	name   string
+	inner  Provider
+	tracer trace.Tracer
+}
+
+func (t *traced) Create(ctx context.Context, req CreateRequest) (string, error) {
+	ctx, span := t.start(ctx, "provider.create")
+	id, err := t.inner.Create(ctx, req)
+	if id != "" {
+		span.SetAttributes(attribute.String("provider.id", id))
+	}
+	t.end(span, err)
+	return id, err
+}
+
+func (t *traced) Get(ctx context.Context, providerID string) (*Instance, error) {
+	ctx, span := t.start(ctx, "provider.get")
+	span.SetAttributes(attribute.String("provider.id", providerID))
+	inst, err := t.inner.Get(ctx, providerID)
+	t.end(span, err)
+	return inst, err
+}
+
+func (t *traced) Delete(ctx context.Context, providerID string) error {
+	ctx, span := t.start(ctx, "provider.delete")
+	span.SetAttributes(attribute.String("provider.id", providerID))
+	err := t.inner.Delete(ctx, providerID)
+	t.end(span, err)
+	return err
+}
+
+func (t *traced) ListByTag(ctx context.Context) ([]Instance, error) {
+	ctx, span := t.start(ctx, "provider.list")
+	instances, err := t.inner.ListByTag(ctx)
+	span.SetAttributes(attribute.Int("provider.instances", len(instances)))
+	t.end(span, err)
+	return instances, err
+}
+
+func (t *traced) start(ctx context.Context, op string) (context.Context, trace.Span) {
+	return tracing.StartSpan(ctx, t.tracer, op,
+		trace.WithSpanKind(trace.SpanKindClient),
+		trace.WithAttributes(attribute.String("provider.name", t.name)))
+}
+
+// end records the taxonomy class and closes the span. ErrNotFound stays Ok:
+// the reconciler polls Get to NotFound during replacement/deletion, so it is
+// an expected answer, not a failure — same reasoning as resultLabel's
+// distinct "not_found" bucket.
+func (t *traced) end(span trace.Span, err error) {
+	span.SetAttributes(attribute.String("provider.result", resultLabel(err)))
+	switch Class(err) {
+	case nil, ErrNotFound:
+		span.SetStatus(codes.Ok, "")
+	default:
+		span.SetStatus(codes.Error, err.Error())
+	}
+	span.End()
+}

internal/provider/tracing_test.go

@@ -0,0 +1,118 @@
+package provider
+
+import (
+	"context"
+	"errors"
+	"slices"
+	"testing"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/internal/tracing"
+)
+
+func TestWithTracing_spanPerCall(t *testing.T) {
+	t.Parallel()
+
+	tests := []struct {
+		name       string
+		inner      *staticProvider
+		call       func(p Provider) error
+		wantSpan   string
+		wantStatus codes.Code
+		wantResult string
+		wantAttr   attribute.KeyValue
+	}{
+		{
+			name:       "successful create",
+			inner:      &staticProvider{},
+			call:       func(p Provider) error { _, err := p.Create(context.Background(), CreateRequest{}); return err },
+			wantSpan:   "provider.create",
+			wantStatus: codes.Ok,
+			wantResult: resultOK,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "get NotFound is not a span error",
+			inner:      &staticProvider{getErr: Wrap(ErrNotFound, "get", "x", "id-1", nil)},
+			call:       func(p Provider) error { _, err := p.Get(context.Background(), "id-1"); return err },
+			wantSpan:   "provider.get",
+			wantStatus: codes.Ok,
+			wantResult: resultNotFound,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "delete transient error",
+			inner:      &staticProvider{deleteErr: Wrap(ErrTransient, "delete", "x", "id-1", errors.New("503"))},
+			call:       func(p Provider) error { return p.Delete(context.Background(), "id-1") },
+			wantSpan:   "provider.delete",
+			wantStatus: codes.Error,
+			wantResult: resultTransient,
+			wantAttr:   attribute.String("provider.id", "id-1"),
+		},
+		{
+			name:       "quota exceeded create",
+			inner:      &staticProvider{createErr: Wrap(ErrQuotaExceeded, "create", "x", "", nil)},
+			call:       func(p Provider) error { _, err := p.Create(context.Background(), CreateRequest{}); return err },
+			wantSpan:   "provider.create",
+			wantStatus: codes.Error,
+			wantResult: resultQuotaExceeded,
+			wantAttr:   attribute.String("provider.name", "x"),
+		},
+		{
+			name:       "list records instance count",
+			inner:      &staticProvider{},
+			call:       func(p Provider) error { _, err := p.ListByTag(context.Background()); return err },
+			wantSpan:   "provider.list",
+			wantStatus: codes.Ok,
+			wantResult: resultOK,
+			wantAttr:   attribute.Int("provider.instances", 0),
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			sr := tracetest.NewSpanRecorder()
+			tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+			t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+			p := WithTracing("x", tc.inner, tracing.WithTracerProvider(tp))
+			err := tc.call(p)
+
+			wantErr := errors.Join(tc.inner.createErr, tc.inner.getErr, tc.inner.deleteErr, tc.inner.listErr)
+			if (wantErr == nil) != (err == nil) {
+				t.Fatalf("decorator changed the error: got %v", err)
+			}
+
+			ended := sr.Ended()
+			if len(ended) != 1 {
+				t.Fatalf("got %d spans, want 1", len(ended))
+			}
+			span := ended[0]
+			if span.Name() != tc.wantSpan {
+				t.Errorf("span name = %q, want %q", span.Name(), tc.wantSpan)
+			}
+			if span.SpanKind() != trace.SpanKindClient {
+				t.Errorf("span kind = %v, want client", span.SpanKind())
+			}
+			if span.Status().Code != tc.wantStatus {
+				t.Errorf("status = %v, want %v", span.Status().Code, tc.wantStatus)
+			}
+			attrs := span.Attributes()
+			hasAttr := func(want attribute.KeyValue) bool {
+				return slices.Contains(attrs, want)
+			}
+			if !hasAttr(attribute.String("provider.result", tc.wantResult)) {
+				t.Errorf("provider.result %q missing in %v", tc.wantResult, attrs)
+			}
+			if !hasAttr(tc.wantAttr) {
+				t.Errorf("attribute %v missing in %v", tc.wantAttr, attrs)
+			}
+		})
+	}
+}

internal/tracing/http.go

@@ -0,0 +1,41 @@
+package tracing
+
+import (
+	"net/http"
+
+	"github.com/go-logr/logr"
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
+	"go.opentelemetry.io/otel/propagation"
+)
+
+// HTTPMiddleware returns middleware that opens a server span per request
+// (named from the mux route pattern once routing has happened) and hands
+// handlers a request context whose logf.FromContext logger is base enriched
+// with the trace context. Incoming W3C traceparent headers are honored, so
+// clients see their own trace continue into the operator. /healthz is never
+// traced. With tracing disabled the middleware degrades to injecting base
+// unenriched — handlers can rely on logf.FromContext either way.
+func HTTPMiddleware(operation string, base logr.Logger, opts ...Option) func(http.Handler) http.Handler {
+	o := newOptions(opts)
+	return func(next http.Handler) http.Handler {
+		inner := http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			r2 := r.WithContext(ContextWithLogger(r.Context(), base))
+			next.ServeHTTP(w, r2)
+			// WithContext copies the request, so the mux recorded the matched
+			// route on r2; surface it to otelhttp, which renames the span
+			// from r.Pattern after the handler returns.
+			r.Pattern = r2.Pattern
+		})
+		otelOpts := []otelhttp.Option{
+			otelhttp.WithFilter(func(r *http.Request) bool { return r.URL.Path != "/healthz" }),
+			// Explicit propagators: deterministic regardless of whether the
+			// global propagator has been installed (tests, disabled tracing).
+			otelhttp.WithPropagators(propagation.NewCompositeTextMapPropagator(
+				propagation.TraceContext{}, propagation.Baggage{})),
+		}
+		if o.tp != nil {
+			otelOpts = append(otelOpts, otelhttp.WithTracerProvider(o.tp))
+		}
+		return otelhttp.NewHandler(inner, operation, otelOpts...)
+	}
+}

internal/tracing/http_test.go

@@ -0,0 +1,82 @@
+package tracing
+
+import (
+	"context"
+	"net/http"
+	"net/http/httptest"
+	"strings"
+	"testing"
+
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+const sampleTraceparent = "00-4bf92f3577b34da6a3ce929d0e0e4736-00f067aa0ba902b7-01"
+
+func TestHTTPMiddleware(t *testing.T) {
+	t.Parallel()
+
+	newServer := func(lines *[]string, tp *sdktrace.TracerProvider) http.Handler {
+		mux := http.NewServeMux()
+		handler := func(w http.ResponseWriter, r *http.Request) {
+			logf.FromContext(r.Context()).Info("handling")
+			w.WriteHeader(http.StatusOK)
+		}
+		mux.HandleFunc("GET /healthz", handler)
+		mux.HandleFunc("GET /v1/things/{id}", handler)
+		return HTTPMiddleware("discovery", captureLogger(lines), WithTracerProvider(tp))(mux)
+	}
+
+	t.Run("route span, enriched handler logs, traceparent continuation", func(t *testing.T) {
+		t.Parallel()
+		sr := tracetest.NewSpanRecorder()
+		tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+		t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+		var lines []string
+		rec := httptest.NewRecorder()
+		req := httptest.NewRequest(http.MethodGet, "/v1/things/42", nil)
+		req.Header.Set("traceparent", sampleTraceparent)
+		newServer(&lines, tp).ServeHTTP(rec, req)
+
+		ended := sr.Ended()
+		if len(ended) != 1 {
+			t.Fatalf("got %d spans, want 1", len(ended))
+		}
+		if got := ended[0].Name(); got != "GET /v1/things/{id}" {
+			t.Errorf("span name = %q, want route pattern", got)
+		}
+		wantTrace := "4bf92f3577b34da6a3ce929d0e0e4736"
+		if got := ended[0].SpanContext().TraceID().String(); got != wantTrace {
+			t.Errorf("span traceID = %s, want continuation of client trace %s", got, wantTrace)
+		}
+		if len(lines) != 1 {
+			t.Fatalf("got %d log lines, want 1: %v", len(lines), lines)
+		}
+		if n := strings.Count(lines[0], `"traceID"`); n != 1 {
+			t.Errorf("traceID appears %d times, want 1: %s", n, lines[0])
+		}
+		if !strings.Contains(lines[0], wantTrace) {
+			t.Errorf("handler log missing traceID %s: %s", wantTrace, lines[0])
+		}
+	})
+
+	t.Run("healthz is not traced but still gets a logger", func(t *testing.T) {
+		t.Parallel()
+		sr := tracetest.NewSpanRecorder()
+		tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+		t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+		var lines []string
+		rec := httptest.NewRecorder()
+		newServer(&lines, tp).ServeHTTP(rec, httptest.NewRequest(http.MethodGet, "/healthz", nil))
+
+		if len(sr.Ended()) != 0 {
+			t.Fatalf("healthz produced %d spans, want 0", len(sr.Ended()))
+		}
+		if len(lines) != 1 || strings.Contains(lines[0], "traceID") {
+			t.Fatalf("want one unenriched log line, got %v", lines)
+		}
+	})
+}

internal/tracing/logger.go

@@ -0,0 +1,65 @@
+package tracing
+
+import (
+	"context"
+
+	"github.com/go-logr/logr"
+	"go.opentelemetry.io/otel/trace"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+// baseLoggerKey stores the pre-enrichment logger. logr sinks never see a
+// context, so trace IDs must ride on the logger as WithValues — and zap does
+// not dedupe repeated keys, so each nested span must re-derive from the same
+// base instead of stacking traceID/spanID onto an already-enriched logger.
+type baseLoggerKey struct{}
+
+// Start begins a span from the global tracer and returns a context whose
+// logf.FromContext logger carries the span's traceID/spanID. With tracing
+// disabled the span is a no-op with an invalid span context and the logger
+// is left untouched.
+//
+// Trade-off, documented: values pushed via logf.IntoContext *between* two
+// Start calls are dropped by the inner Start's re-derivation. Nothing
+// first-party does that; controller-runtime's per-reconcile logger
+// (reconcileID etc.) is captured as the base and survives.
+func Start(ctx context.Context, name string, opts ...trace.SpanStartOption) (context.Context, trace.Span) {
+	return StartSpan(ctx, newOptions(nil).tracer(), name, opts...)
+}
+
+// StartSpan is Start with an explicit tracer, for decorators that carry
+// their own (test-injected) TracerProvider.
+func StartSpan(ctx context.Context, tracer trace.Tracer, name string, opts ...trace.SpanStartOption) (context.Context, trace.Span) {
+	ctx, span := tracer.Start(ctx, name, opts...)
+	sc := span.SpanContext()
+	if !sc.IsValid() {
+		return ctx, span
+	}
+	base, ok := ctx.Value(baseLoggerKey{}).(logr.Logger)
+	if !ok {
+		base = logf.FromContext(ctx)
+		ctx = context.WithValue(ctx, baseLoggerKey{}, base)
+	}
+	return logf.IntoContext(ctx, withSpanValues(base, sc)), span
+}
+
+// ContextWithLogger seeds ctx with base as both the current logger and the
+// base for span enrichment. If ctx already carries a valid span (the HTTP
+// middleware calls this inside the otelhttp handler), the logger is
+// enriched immediately.
+//
+//nolint:logcheck // IntoContext-analogue: taking ctx and the logger to seed it with is the point.
+func ContextWithLogger(ctx context.Context, base logr.Logger) context.Context {
+	ctx = context.WithValue(ctx, baseLoggerKey{}, base)
+	if sc := trace.SpanContextFromContext(ctx); sc.IsValid() {
+		return logf.IntoContext(ctx, withSpanValues(base, sc))
+	}
+	return logf.IntoContext(ctx, base)
+}
+
+// withSpanValues uses lowerCamel keys to match the house style
+// (reconcileID, providerID); Grafana/Loki derived fields must match
+// "traceID", not the trace_id default.
+func withSpanValues(base logr.Logger, sc trace.SpanContext) logr.Logger {
+	return base.WithValues("traceID", sc.TraceID().String(), "spanID", sc.SpanID().String())
+}

internal/tracing/logger_test.go

@@ -0,0 +1,136 @@
+package tracing
+
+import (
+	"context"
+	"strings"
+	"testing"
+
+	"github.com/go-logr/logr"
+	"github.com/go-logr/logr/funcr"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+	"go.opentelemetry.io/otel/trace/noop"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+// captureLogger records every emitted line so tests can assert on the
+// rendered key/value output — the only place duplicate zap-style keys
+// would show up.
+func captureLogger(lines *[]string) logr.Logger {
+	return funcr.New(func(prefix, args string) {
+		*lines = append(*lines, prefix+" "+args)
+	}, funcr.Options{})
+}
+
+func recordingTracer(t *testing.T) (trace.Tracer, *tracetest.SpanRecorder) {
+	t.Helper()
+	sr := tracetest.NewSpanRecorder()
+	tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+	return tp.Tracer("test"), sr
+}
+
+func TestStartSpan_enrichesLoggerOncePerNesting(t *testing.T) {
+	t.Parallel()
+	tracer, sr := recordingTracer(t)
+
+	var lines []string
+	ctx := logf.IntoContext(context.Background(), captureLogger(&lines))
+
+	ctx1, span1 := StartSpan(ctx, tracer, "outer")
+	logf.FromContext(ctx1).Info("outer work")
+
+	ctx2, span2 := StartSpan(ctx1, tracer, "inner")
+	logf.FromContext(ctx2).Info("inner work")
+
+	span2.End()
+	span1.End()
+
+	if len(lines) != 2 {
+		t.Fatalf("got %d log lines, want 2: %v", len(lines), lines)
+	}
+	traceID := span1.SpanContext().TraceID().String()
+	for i, want := range []string{span1.SpanContext().SpanID().String(), span2.SpanContext().SpanID().String()} {
+		if n := strings.Count(lines[i], `"traceID"`); n != 1 {
+			t.Errorf("line %d: traceID appears %d times, want exactly 1: %s", i, n, lines[i])
+		}
+		if n := strings.Count(lines[i], `"spanID"`); n != 1 {
+			t.Errorf("line %d: spanID appears %d times, want exactly 1: %s", i, n, lines[i])
+		}
+		if !strings.Contains(lines[i], traceID) {
+			t.Errorf("line %d: missing traceID %s: %s", i, traceID, lines[i])
+		}
+		if !strings.Contains(lines[i], want) {
+			t.Errorf("line %d: missing spanID %s: %s", i, want, lines[i])
+		}
+	}
+
+	ended := sr.Ended()
+	if len(ended) != 2 {
+		t.Fatalf("got %d spans, want 2", len(ended))
+	}
+	// Ended in LIFO order: inner first.
+	if got := ended[0].Parent().SpanID(); got != span1.SpanContext().SpanID() {
+		t.Errorf("inner span parent = %s, want %s", got, span1.SpanContext().SpanID())
+	}
+}
+
+func TestStartSpan_noopTracerLeavesLoggerUntouched(t *testing.T) {
+	t.Parallel()
+
+	var lines []string
+	ctx := logf.IntoContext(context.Background(), captureLogger(&lines))
+
+	ctx, span := StartSpan(ctx, noop.NewTracerProvider().Tracer("test"), "op")
+	defer span.End()
+	logf.FromContext(ctx).Info("work")
+
+	if len(lines) != 1 {
+		t.Fatalf("got %d log lines, want 1", len(lines))
+	}
+	if strings.Contains(lines[0], "traceID") {
+		t.Errorf("disabled tracing must not add traceID: %s", lines[0])
+	}
+}
+
+func TestContextWithLogger(t *testing.T) {
+	t.Parallel()
+	tracer, _ := recordingTracer(t)
+
+	t.Run("no span injects base as-is", func(t *testing.T) {
+		t.Parallel()
+		var lines []string
+		ctx := ContextWithLogger(context.Background(), captureLogger(&lines))
+		logf.FromContext(ctx).Info("plain")
+		if len(lines) != 1 || strings.Contains(lines[0], "traceID") {
+			t.Fatalf("want one line without traceID, got %v", lines)
+		}
+	})
+
+	t.Run("existing span enriches immediately and nested Start does not stack", func(t *testing.T) {
+		t.Parallel()
+		var lines []string
+		ctx, outer := tracer.Start(context.Background(), "server")
+		defer outer.End()
+
+		ctx = ContextWithLogger(ctx, captureLogger(&lines))
+		logf.FromContext(ctx).Info("handler")
+
+		ctx, inner := StartSpan(ctx, tracer, "child")
+		defer inner.End()
+		logf.FromContext(ctx).Info("nested")
+
+		if len(lines) != 2 {
+			t.Fatalf("got %d lines, want 2: %v", len(lines), lines)
+		}
+		for i, line := range lines {
+			if n := strings.Count(line, `"traceID"`); n != 1 {
+				t.Errorf("line %d: traceID appears %d times, want 1: %s", i, n, line)
+			}
+		}
+		if !strings.Contains(lines[1], inner.SpanContext().SpanID().String()) {
+			t.Errorf("nested line should carry the child spanID: %s", lines[1])
+		}
+	})
+}

internal/tracing/options.go

@@ -0,0 +1,48 @@
+package tracing
+
+import (
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/trace"
+)
+
+// tracerName is the instrumentation scope for every span this module emits.
+const tracerName = "gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator"
+
+type options struct {
+	tp trace.TracerProvider
+}
+
+// Option configures the tracing decorators. The zero configuration uses the
+// global TracerProvider installed by Setup; tests inject their own recorder
+// via WithTracerProvider so they can run in parallel without touching
+// process-global state.
+type Option func(*options)
+
+// WithTracerProvider overrides the global TracerProvider.
+func WithTracerProvider(tp trace.TracerProvider) Option {
+	return func(o *options) { o.tp = tp }
+}
+
+func newOptions(opts []Option) options {
+	var o options
+	for _, opt := range opts {
+		opt(&o)
+	}
+	return o
+}
+
+// Tracer resolves a tracer from the given options, for decorators outside
+// this package (provider.WithTracing).
+func Tracer(opts ...Option) trace.Tracer {
+	return newOptions(opts).tracer()
+}
+
+// tracer resolves the configured tracer. The global path goes through
+// otel.Tracer, which delegates to whatever provider Setup installs later —
+// construction order between decorators and Setup does not matter.
+func (o options) tracer() trace.Tracer {
+	if o.tp != nil {
+		return o.tp.Tracer(tracerName)
+	}
+	return otel.Tracer(tracerName)
+}

internal/tracing/reconciler.go

@@ -0,0 +1,52 @@
+package tracing
+
+import (
+	"context"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	"go.opentelemetry.io/otel/trace"
+	"sigs.k8s.io/controller-runtime/pkg/controller"
+	"sigs.k8s.io/controller-runtime/pkg/reconcile"
+)
+
+// NewReconciler wraps inner so every reconcile runs in a root span named
+// "Reconcile <kind>" and every log line under it carries the trace context.
+// Reconciles are triggered by watch events with no incoming trace to
+// continue, so each one starts a new trace.
+func NewReconciler(kind string, inner reconcile.Reconciler, opts ...Option) reconcile.Reconciler {
+	return &tracedReconciler{
+		spanName: "Reconcile " + kind,
+		inner:    inner,
+		tracer:   newOptions(opts).tracer(),
+	}
+}
+
+type tracedReconciler struct {
+	spanName string
+	inner    reconcile.Reconciler
+	tracer   trace.Tracer
+}
+
+func (t *tracedReconciler) Reconcile(ctx context.Context, req reconcile.Request) (reconcile.Result, error) {
+	ctx, span := StartSpan(ctx, t.tracer, t.spanName,
+		trace.WithAttributes(
+			attribute.String("k8s.namespace.name", req.Namespace),
+			attribute.String("k8s.object.name", req.Name),
+		))
+	defer span.End()
+	if id := controller.ReconcileIDFromContext(ctx); id != "" {
+		span.SetAttributes(attribute.String("reconcile.id", string(id)))
+	}
+
+	res, err := t.inner.Reconcile(ctx, req)
+	if err != nil {
+		span.SetStatus(codes.Error, err.Error())
+		return res, err
+	}
+	span.SetStatus(codes.Ok, "")
+	if res.RequeueAfter > 0 {
+		span.SetAttributes(attribute.Int64("reconcile.requeue_after_ms", res.RequeueAfter.Milliseconds()))
+	}
+	return res, nil
+}

internal/tracing/reconciler_test.go

@@ -0,0 +1,86 @@
+package tracing
+
+import (
+	"context"
+	"errors"
+	"testing"
+	"time"
+
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/codes"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"k8s.io/apimachinery/pkg/types"
+	"sigs.k8s.io/controller-runtime/pkg/reconcile"
+)
+
+type fakeReconciler struct {
+	res reconcile.Result
+	err error
+}
+
+func (f *fakeReconciler) Reconcile(context.Context, reconcile.Request) (reconcile.Result, error) {
+	return f.res, f.err
+}
+
+func TestNewReconciler_spanPerReconcile(t *testing.T) {
+	t.Parallel()
+
+	req := reconcile.Request{NamespacedName: types.NamespacedName{Namespace: "default", Name: "p1"}}
+
+	tests := []struct {
+		name       string
+		inner      *fakeReconciler
+		wantStatus codes.Code
+		wantAttr   attribute.KeyValue
+	}{
+		{
+			name:       "success records requeue",
+			inner:      &fakeReconciler{res: reconcile.Result{RequeueAfter: 10 * time.Second}},
+			wantStatus: codes.Ok,
+			wantAttr:   attribute.Int64("reconcile.requeue_after_ms", 10_000),
+		},
+		{
+			name:       "error sets error status",
+			inner:      &fakeReconciler{err: errors.New("boom")},
+			wantStatus: codes.Error,
+			wantAttr:   attribute.String("k8s.object.name", "p1"),
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Parallel()
+			sr := tracetest.NewSpanRecorder()
+			tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+			t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+			r := NewReconciler("Proxy", tc.inner, WithTracerProvider(tp))
+			res, err := r.Reconcile(context.Background(), req)
+			if res != tc.inner.res || !errors.Is(err, tc.inner.err) {
+				t.Fatalf("decorator changed the result: (%v, %v)", res, err)
+			}
+
+			ended := sr.Ended()
+			if len(ended) != 1 {
+				t.Fatalf("got %d spans, want 1", len(ended))
+			}
+			span := ended[0]
+			if span.Name() != "Reconcile Proxy" {
+				t.Errorf("span name = %q, want %q", span.Name(), "Reconcile Proxy")
+			}
+			if span.Status().Code != tc.wantStatus {
+				t.Errorf("status = %v, want %v", span.Status().Code, tc.wantStatus)
+			}
+			found := false
+			for _, a := range span.Attributes() {
+				if a == tc.wantAttr {
+					found = true
+				}
+			}
+			if !found {
+				t.Errorf("attribute %v missing in %v", tc.wantAttr, span.Attributes())
+			}
+		})
+	}
+}

internal/tracing/tracing.go

@@ -0,0 +1,157 @@
+// Package tracing wires OpenTelemetry tracing into the operator: SDK setup
+// gated on standard OTEL_* environment variables, span helpers that keep the
+// logr/zap logging enriched with trace context, and decorators for the
+// reconciler, providers, HTTP server, and Kubernetes API transport.
+package tracing
+
+import (
+	"context"
+	"fmt"
+	"os"
+	"strings"
+
+	"go.opentelemetry.io/otel"
+	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracegrpc"
+	"go.opentelemetry.io/otel/exporters/otlp/otlptrace/otlptracehttp"
+	"go.opentelemetry.io/otel/exporters/stdout/stdouttrace"
+	"go.opentelemetry.io/otel/propagation"
+	"go.opentelemetry.io/otel/sdk/resource"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	semconv "go.opentelemetry.io/otel/semconv/v1.43.0"
+	logf "sigs.k8s.io/controller-runtime/pkg/log"
+)
+
+const (
+	envSDKDisabled        = "OTEL_SDK_DISABLED"
+	envTracesExporter     = "OTEL_TRACES_EXPORTER"
+	envOTLPEndpoint       = "OTEL_EXPORTER_OTLP_ENDPOINT"
+	envOTLPTracesEndpoint = "OTEL_EXPORTER_OTLP_TRACES_ENDPOINT"
+	envOTLPProtocol       = "OTEL_EXPORTER_OTLP_PROTOCOL"
+	envOTLPTracesProtocol = "OTEL_EXPORTER_OTLP_TRACES_PROTOCOL"
+
+	exporterOTLP    = "otlp"
+	exporterConsole = "console"
+	exporterNone    = "none"
+)
+
+// maxQueueSize bounds the batch processor's span buffer; the default 2048
+// is oversized for this process (3 concurrent reconciles, tickers) and the
+// manager pod runs with a 128Mi memory limit.
+const maxQueueSize = 512
+
+// Setup initializes the global tracing pipeline from OTEL_* environment
+// variables and returns a shutdown func that flushes pending spans.
+//
+// Tracing stays fully off — no exporter, no global provider, spans are
+// no-ops, logs carry no traceID — unless the environment opts in by setting
+// OTEL_TRACES_EXPORTER or an OTLP endpoint. OTEL_SDK_DISABLED=true and
+// OTEL_TRACES_EXPORTER=none force it off (the Go SDK does not implement
+// OTEL_SDK_DISABLED itself). Sampling, endpoints, TLS, and headers follow
+// the standard SDK/exporter env vars (OTEL_TRACES_SAMPLER, OTEL_EXPORTER_OTLP_*).
+//
+// Setup logs via the logger in ctx (logf.FromContext) rather than a
+// parameter — the caller seeds it with logf.IntoContext.
+func Setup(ctx context.Context, service, version string) (func(context.Context) error, error) {
+	log := logf.FromContext(ctx)
+	noop := func(context.Context) error { return nil }
+
+	exporterEnv := strings.ToLower(strings.TrimSpace(os.Getenv(envTracesExporter)))
+	endpointSet := os.Getenv(envOTLPEndpoint) != "" ||
+		os.Getenv(envOTLPTracesEndpoint) != ""
+	sdkDisabled := strings.EqualFold(strings.TrimSpace(os.Getenv(envSDKDisabled)), "true")
+
+	if sdkDisabled || exporterEnv == exporterNone || (exporterEnv == "" && !endpointSet) {
+		log.Info("tracing disabled",
+			"reason", disabledReason(sdkDisabled, exporterEnv))
+		return noop, nil
+	}
+
+	exp, expName, err := newExporter(ctx, exporterEnv)
+	if err != nil {
+		return noop, fmt.Errorf("tracing setup: %w", err)
+	}
+
+	res, err := buildResource(ctx, service, version)
+	if err != nil {
+		if res == nil {
+			return noop, fmt.Errorf("tracing setup: building resource: %w", err)
+		}
+		// Schema-URL conflicts between semconv versions still yield a usable
+		// merged resource; keep it rather than losing tracing over metadata.
+		log.V(1).Info("tracing resource merge conflict; continuing", "err", err.Error())
+	}
+
+	tp := sdktrace.NewTracerProvider(
+		sdktrace.WithBatcher(exp, sdktrace.WithMaxQueueSize(maxQueueSize)),
+		sdktrace.WithResource(res),
+	)
+	otel.SetTracerProvider(tp)
+	otel.SetTextMapPropagator(propagation.NewCompositeTextMapPropagator(
+		propagation.TraceContext{}, propagation.Baggage{}))
+	otelLog := log.WithName("otel")
+	otel.SetLogger(otelLog)
+	// V(1), not Error: an unreachable collector fails every export cycle and
+	// would otherwise spam the error log every few seconds.
+	otel.SetErrorHandler(otel.ErrorHandlerFunc(func(err error) {
+		otelLog.V(1).Info("otel error", "err", err.Error())
+	}))
+
+	log.Info("tracing enabled", "exporter", expName, "service", service)
+	return tp.Shutdown, nil
+}
+
+func disabledReason(sdkDisabled bool, exporterEnv string) string {
+	switch {
+	case sdkDisabled:
+		return "OTEL_SDK_DISABLED=true"
+	case exporterEnv == exporterNone:
+		return "OTEL_TRACES_EXPORTER=none"
+	default:
+		return "no OTEL_TRACES_EXPORTER or OTLP endpoint configured"
+	}
+}
+
+// newExporter hand-rolls the OTEL_TRACES_EXPORTER / OTEL_EXPORTER_OTLP_*
+// protocol selection instead of pulling in contrib's autoexport, which drags
+// metric/log/prometheus exporters into a trace-only binary.
+func newExporter(ctx context.Context, kind string) (sdktrace.SpanExporter, string, error) {
+	switch kind {
+	case "", exporterOTLP:
+		proto := strings.ToLower(strings.TrimSpace(os.Getenv(envOTLPTracesProtocol)))
+		if proto == "" {
+			proto = strings.ToLower(strings.TrimSpace(os.Getenv(envOTLPProtocol)))
+		}
+		switch proto {
+		case "", "http/protobuf":
+			exp, err := otlptracehttp.New(ctx)
+			return exp, "otlp/http", err
+		case "grpc":
+			exp, err := otlptracegrpc.New(ctx)
+			return exp, "otlp/grpc", err
+		default:
+			return nil, "", fmt.Errorf("unsupported OTLP protocol %q (supported: http/protobuf, grpc)", proto)
+		}
+	case exporterConsole:
+		exp, err := stdouttrace.New()
+		return exp, exporterConsole, err
+	default:
+		return nil, "", fmt.Errorf("unsupported OTEL_TRACES_EXPORTER %q (supported: otlp, console, none)", kind)
+	}
+}
+
+// buildResource layers defaults < service identity < environment, so
+// OTEL_SERVICE_NAME / OTEL_RESOURCE_ATTRIBUTES always win.
+func buildResource(ctx context.Context, service, version string) (*resource.Resource, error) {
+	base, err := resource.Merge(resource.Default(), resource.NewWithAttributes(semconv.SchemaURL,
+		semconv.ServiceName(service),
+		semconv.ServiceVersion(version),
+	))
+	if err != nil {
+		return base, err
+	}
+	env, err := resource.New(ctx, resource.WithFromEnv())
+	if err != nil {
+		return base, err
+	}
+	return resource.Merge(base, env)
+}

internal/tracing/tracing_test.go

@@ -0,0 +1,130 @@
+package tracing
+
+import (
+	"context"
+	"testing"
+	"time"
+
+	"go.opentelemetry.io/otel"
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/trace/noop"
+)
+
+const testOTLPEndpoint = "http://localhost:4318"
+
+// clearOTelEnv pins every env var Setup reads, so developer shells with
+// OTEL_* set can't change test outcomes. Not parallel-safe by design
+// (t.Setenv forbids t.Parallel).
+func clearOTelEnv(t *testing.T) {
+	t.Helper()
+	for _, k := range []string{
+		envSDKDisabled,
+		envTracesExporter,
+		envOTLPEndpoint,
+		envOTLPTracesEndpoint,
+		envOTLPProtocol,
+		envOTLPTracesProtocol,
+	} {
+		t.Setenv(k, "")
+	}
+}
+
+func TestSetup_envGating(t *testing.T) {
+	tests := []struct {
+		name        string
+		env         map[string]string
+		wantEnabled bool
+		wantErr     bool
+	}{
+		{name: "no env means disabled", env: nil, wantEnabled: false},
+		{
+			name:        "endpoint enables otlp",
+			env:         map[string]string{envOTLPEndpoint: testOTLPEndpoint},
+			wantEnabled: true,
+		},
+		{
+			name:        "traces endpoint enables otlp",
+			env:         map[string]string{envOTLPTracesEndpoint: testOTLPEndpoint},
+			wantEnabled: true,
+		},
+		{
+			name:        "explicit console exporter",
+			env:         map[string]string{envTracesExporter: exporterConsole},
+			wantEnabled: true,
+		},
+		{
+			name:        "grpc protocol",
+			env:         map[string]string{envTracesExporter: exporterOTLP, envOTLPProtocol: "grpc"},
+			wantEnabled: true,
+		},
+		{
+			name: "exporter none wins over endpoint",
+			env: map[string]string{
+				envTracesExporter: exporterNone,
+				envOTLPEndpoint:   testOTLPEndpoint,
+			},
+			wantEnabled: false,
+		},
+		{
+			name: "OTEL_SDK_DISABLED wins over everything",
+			env: map[string]string{
+				envSDKDisabled:  "true",
+				envOTLPEndpoint: testOTLPEndpoint,
+			},
+			wantEnabled: false,
+		},
+		{
+			name:    "unsupported exporter errors",
+			env:     map[string]string{envTracesExporter: "jaeger"},
+			wantErr: true,
+		},
+		{
+			name: "unsupported protocol errors",
+			env: map[string]string{
+				envTracesExporter: exporterOTLP,
+				envOTLPProtocol:   "http/json",
+			},
+			wantErr: true,
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			clearOTelEnv(t)
+			for k, v := range tc.env {
+				t.Setenv(k, v)
+			}
+			// Fresh noop global per case: disabled paths must leave it
+			// untouched, and resetting avoids leaking one case's SDK
+			// provider into the next (or warning-prone restores of the
+			// process-default delegate).
+			before := noop.NewTracerProvider()
+			otel.SetTracerProvider(before)
+
+			shutdown, err := Setup(context.Background(), "test-svc", "abc123")
+			if tc.wantErr {
+				if err == nil {
+					t.Fatal("want error, got nil")
+				}
+				return
+			}
+			if err != nil {
+				t.Fatalf("Setup: %v", err)
+			}
+
+			_, isSDK := otel.GetTracerProvider().(*sdktrace.TracerProvider)
+			if isSDK != tc.wantEnabled {
+				t.Errorf("global provider is SDK = %v, want %v", isSDK, tc.wantEnabled)
+			}
+			if tc.wantEnabled && otel.GetTracerProvider() == before {
+				t.Error("enabled Setup must install a new global provider")
+			}
+
+			ctx, cancel := context.WithTimeout(context.Background(), 2*time.Second)
+			defer cancel()
+			if err := shutdown(ctx); err != nil {
+				t.Errorf("shutdown: %v", err)
+			}
+		})
+	}
+}

internal/tracing/transport.go

@@ -0,0 +1,51 @@
+package tracing
+
+import (
+	"net/http"
+
+	"go.opentelemetry.io/contrib/instrumentation/net/http/otelhttp"
+	"go.opentelemetry.io/otel/propagation"
+	"go.opentelemetry.io/otel/trace"
+	"k8s.io/client-go/transport"
+)
+
+// RestConfigWrapper returns a rest.Config.Wrap-compatible wrapper that adds
+// a client span to every Kubernetes API request already running inside a
+// trace. Requests with no parent span pass through untouched: informer
+// list/watch long-polls, leader-election renewals, and metrics authn would
+// otherwise each become meaningless (and in the watch case, minutes-long)
+// root spans. client-go applies Wrap innermost, so the span sees the final
+// authenticated request.
+func RestConfigWrapper(opts ...Option) transport.WrapperFunc {
+	o := newOptions(opts)
+	return func(rt http.RoundTripper) http.RoundTripper {
+		otelOpts := []otelhttp.Option{
+			// Explicit propagators: deterministic regardless of global
+			// state. The apiserver ignores incoming traceparent (by
+			// design), so injection is harmless there.
+			otelhttp.WithPropagators(propagation.NewCompositeTextMapPropagator(
+				propagation.TraceContext{}, propagation.Baggage{})),
+		}
+		if o.tp != nil {
+			otelOpts = append(otelOpts, otelhttp.WithTracerProvider(o.tp))
+		}
+		return &parentGatedTransport{
+			traced: otelhttp.NewTransport(rt, otelOpts...),
+			plain:  rt,
+		}
+	}
+}
+
+// parentGatedTransport enforces the parent-span requirement itself rather
+// than relying on otelhttp filter semantics for transports.
+type parentGatedTransport struct {
+	traced http.RoundTripper
+	plain  http.RoundTripper
+}
+
+func (t *parentGatedTransport) RoundTrip(r *http.Request) (*http.Response, error) {
+	if trace.SpanContextFromContext(r.Context()).IsValid() {
+		return t.traced.RoundTrip(r)
+	}
+	return t.plain.RoundTrip(r)
+}

internal/tracing/transport_test.go

@@ -0,0 +1,73 @@
+package tracing
+
+import (
+	"context"
+	"io"
+	"net/http"
+	"net/http/httptest"
+	"testing"
+
+	sdktrace "go.opentelemetry.io/otel/sdk/trace"
+	"go.opentelemetry.io/otel/sdk/trace/tracetest"
+	"go.opentelemetry.io/otel/trace"
+)
+
+func TestRestConfigWrapper_parentGated(t *testing.T) {
+	t.Parallel()
+
+	var gotTraceparent string
+	srv := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+		gotTraceparent = r.Header.Get("traceparent")
+		w.WriteHeader(http.StatusOK)
+	}))
+	t.Cleanup(srv.Close)
+
+	sr := tracetest.NewSpanRecorder()
+	tp := sdktrace.NewTracerProvider(sdktrace.WithSpanProcessor(sr))
+	t.Cleanup(func() { _ = tp.Shutdown(context.Background()) })
+
+	rt := RestConfigWrapper(WithTracerProvider(tp))(http.DefaultTransport)
+	do := func(ctx context.Context) {
+		t.Helper()
+		req, err := http.NewRequestWithContext(ctx, http.MethodGet, srv.URL, nil)
+		if err != nil {
+			t.Fatal(err)
+		}
+		resp, err := rt.RoundTrip(req)
+		if err != nil {
+			t.Fatal(err)
+		}
+		_, _ = io.Copy(io.Discard, resp.Body)
+		_ = resp.Body.Close()
+	}
+
+	// No parent span: informer watches, leader election. Must not trace.
+	do(context.Background())
+	if len(sr.Ended()) != 0 {
+		t.Fatalf("request without parent span produced %d spans, want 0", len(sr.Ended()))
+	}
+	if gotTraceparent != "" {
+		t.Fatalf("request without parent span injected traceparent %q", gotTraceparent)
+	}
+
+	// Under a parent span: one client child span, traceparent injected.
+	ctx, parent := tp.Tracer("test").Start(context.Background(), "reconcile")
+	do(ctx)
+	parent.End()
+
+	var client sdktrace.ReadOnlySpan
+	for _, s := range sr.Ended() {
+		if s.SpanKind() == trace.SpanKindClient {
+			client = s
+		}
+	}
+	if client == nil {
+		t.Fatalf("no client span recorded, got %d spans", len(sr.Ended()))
+	}
+	if got := client.Parent().SpanID(); got != parent.SpanContext().SpanID() {
+		t.Errorf("client span parent = %s, want %s", got, parent.SpanContext().SpanID())
+	}
+	if gotTraceparent == "" {
+		t.Error("traceparent header not injected under a parent span")
+	}
+}

test/e2e/tracing_test.go

@@ -0,0 +1,424 @@
+//go:build e2e
+// +build e2e
+
+/*
+Copyright 2026.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package e2e
+
+import (
+	"context"
+	"encoding/json"
+	"fmt"
+	"io"
+	"net/http"
+	"net/url"
+	"os"
+	"os/exec"
+	"path/filepath"
+	"strconv"
+	"strings"
+	"time"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+
+	"gitea.home.hrajfrisbee.cz/kacerr/egress-proxies-operator/test/utils"
+)
+
+// The tracing e2e proves the full pipeline against a real Tempo: operator in
+// kind → OTLP export → Tempo ingest → traces queryable with the documented
+// span topology. It is gated on TEMPO_URL (Tempo query API, e.g.
+// http://192.168.0.30:3200) and OTLP_ENDPOINT (OTLP HTTP ingest, e.g.
+// http://192.168.0.30:4318) and skips when either is unset, so the rest of
+// the suite runs anywhere.
+//
+// Every span of a run carries the resource attribute test.run.id=<runID>
+// (injected via OTEL_RESOURCE_ATTRIBUTES — no code changes), so one TraceQL
+// query finds exactly this run's traces, in the test and in Grafana alike.
+var _ = Describe("OTel tracing", Ordered, func() {
+	// Proxy CRs live in default, not the operator namespace: the squid pods
+	// the kubernetes provider creates carry no securityContext and would be
+	// rejected by the operator namespace's restricted PSS label.
+	const proxyNS = "default"
+	const deploymentName = "egress-proxies-operator-controller-manager"
+	const squidImage = "ubuntu/squid:6.6-24.04_edge"
+
+	proxyNames := []string{"proxy-tracing-e2e-1", "proxy-tracing-e2e-2"}
+
+	var (
+		tempoURL     string
+		otlpEndpoint string
+		runID        string
+		suiteStart   time.Time
+	)
+
+	BeforeAll(func() {
+		tempoURL = os.Getenv("TEMPO_URL")
+		otlpEndpoint = os.Getenv("OTLP_ENDPOINT")
+		if tempoURL == "" || otlpEndpoint == "" {
+			Skip("TEMPO_URL / OTLP_ENDPOINT not set — skipping the Tempo-backed tracing e2e")
+		}
+		suiteStart = time.Now()
+		runID = "e2e-" + strconv.FormatInt(suiteStart.UnixNano(), 10)
+		_, _ = fmt.Fprintf(GinkgoWriter,
+			"tracing e2e run id: %s — find this run in Grafana with TraceQL {resource.test.run.id=%q}\n",
+			runID, runID)
+
+		By("creating manager namespace")
+		cmd := exec.Command("kubectl", "create", "ns", namespace)
+		_, err := utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to create namespace")
+
+		By("labeling the namespace to enforce the restricted security policy")
+		cmd = exec.Command("kubectl", "label", "--overwrite", "ns", namespace,
+			"pod-security.kubernetes.io/enforce=restricted")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to label namespace with restricted policy")
+
+		By("installing CRDs")
+		cmd = exec.Command("make", "install")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to install CRDs")
+
+		By("deploying the controller-manager")
+		cmd = exec.Command("make", "deploy", fmt.Sprintf("IMG=%s", managerImage))
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to deploy the controller-manager")
+
+		By("pre-pulling the squid image into kind (best effort, kills the biggest flake source)")
+		if _, err := utils.Run(exec.Command("docker", "pull", squidImage)); err == nil {
+			if err := utils.LoadImageToKindClusterWithName(squidImage); err != nil {
+				_, _ = fmt.Fprintf(GinkgoWriter, "kind load of %s failed (continuing): %v\n", squidImage, err)
+			}
+		} else {
+			_, _ = fmt.Fprintf(GinkgoWriter, "docker pull %s failed (continuing): %v\n", squidImage, err)
+		}
+
+		By("preflighting the OTLP endpoint from inside the cluster")
+		// Host-reachability of the OTLP endpoint does not prove
+		// pod-reachability from inside kind, and the operator logs export
+		// failures only at V(1) — without this, a broken path is a slow,
+		// opaque search timeout instead of a clear failure.
+		preflightOTLP(otlpEndpoint)
+
+		By("pointing the operator at the OTLP endpoint and tagging the test run")
+		// OTEL_RESOURCE_ATTRIBUTES is replaced in place, which keeps it
+		// listed after the downward-API POD_NAME/POD_NAMESPACE vars —
+		// $(VAR) expansion only sees earlier-listed vars. exec.Command
+		// passes $(...) through without shell mangling.
+		cmd = exec.Command("kubectl", "set", "env",
+			"deployment/"+deploymentName, "-n", namespace,
+			"OTEL_EXPORTER_OTLP_ENDPOINT="+otlpEndpoint,
+			fmt.Sprintf(
+				"OTEL_RESOURCE_ATTRIBUTES=k8s.pod.name=$(POD_NAME),k8s.namespace.name=$(POD_NAMESPACE),test.run.id=%s",
+				runID))
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Failed to set OTel env on the deployment")
+
+		cmd = exec.Command("kubectl", "rollout", "status",
+			"deployment/"+deploymentName, "-n", namespace, "--timeout=3m")
+		_, err = utils.Run(cmd)
+		Expect(err).NotTo(HaveOccurred(), "Rollout after set env did not finish")
+
+		By("verifying the operator reports tracing enabled")
+		Eventually(func(g Gomega) {
+			pod := newestControllerPod(g)
+			out, err := utils.Run(exec.Command("kubectl", "logs", pod, "-n", namespace))
+			g.Expect(err).NotTo(HaveOccurred())
+			g.Expect(out).To(ContainSubstring("tracing enabled"),
+				"operator did not log 'tracing enabled' after rollout")
+		}, 2*time.Minute).Should(Succeed())
+	})
+
+	AfterAll(func() {
+		if tempoURL == "" || otlpEndpoint == "" {
+			return // spec was skipped; nothing was deployed
+		}
+		By("cleaning up test proxies")
+		args := append([]string{"delete", "proxy", "-n", proxyNS, "--ignore-not-found"}, proxyNames...)
+		_, _ = utils.Run(exec.Command("kubectl", args...))
+
+		By("cleaning up the OTLP preflight pod")
+		_, _ = utils.Run(exec.Command("kubectl", "delete", "pod", otlpProbePodName, "-n", namespace,
+			"--ignore-not-found"))
+
+		By("undeploying the controller-manager")
+		_, _ = utils.Run(exec.Command("make", "undeploy"))
+
+		By("uninstalling CRDs")
+		_, _ = utils.Run(exec.Command("make", "uninstall"))
+
+		By("removing manager namespace")
+		_, _ = utils.Run(exec.Command("kubectl", "delete", "ns", namespace))
+	})
+
+	It("creates proxies and reports reconcile traces to Tempo", func() {
+		By("applying two kubernetes-provider proxies")
+		// Absolute paths on purpose: utils.Run chdirs the whole process.
+		dir := GinkgoT().TempDir()
+		for _, name := range proxyNames {
+			manifest := fmt.Sprintf(`apiVersion: crawl.example.com/v1alpha1
+kind: Proxy
+metadata:
+  name: %s
+  namespace: %s
+spec:
+  mode: Managed
+  provider: kubernetes
+  attributes:
+    purpose: tracing-e2e
+`, name, proxyNS)
+			path := filepath.Join(dir, name+".yaml")
+			Expect(os.WriteFile(path, []byte(manifest), 0o644)).To(Succeed())
+			_, err := utils.Run(exec.Command("kubectl", "apply", "-f", path))
+			Expect(err).NotTo(HaveOccurred(), "Failed to apply %s", name)
+		}
+
+		By("waiting for the proxies to become Ready")
+		Eventually(func(g Gomega) {
+			for _, name := range proxyNames {
+				out, err := utils.Run(exec.Command("kubectl", "get", "proxy", name,
+					"-n", proxyNS, "-o", "jsonpath={.status.phase}"))
+				g.Expect(err).NotTo(HaveOccurred())
+				g.Expect(out).To(Equal("Ready"), "proxy %s not Ready", name)
+			}
+		}, 5*time.Minute).Should(Succeed())
+
+		By("finding a provider.create trace for this run in Tempo")
+		// Anchored on provider.create, not the root span name: a
+		// "Reconcile Proxy" hit could be the finalizer-add or a drift
+		// reconcile, which contain no provider call.
+		traceID := eventuallyFindTrace(tempoURL, runID, "provider.create", suiteStart)
+
+		By("asserting the reconcile trace structure")
+		spanNames, resAttrs, err := tempoTrace(tempoURL, traceID)
+		Expect(err).NotTo(HaveOccurred())
+		Expect(spanNames).To(ContainElements(
+			"Reconcile Proxy", "reconcile.managed", "provider.create", "status.patch"),
+			"trace %s is missing expected spans; got: %v", traceID, spanNames)
+		Expect(resAttrs["service.name"]).To(Equal("egress-proxies-operator"))
+		Expect(resAttrs["test.run.id"]).To(Equal(runID))
+	})
+
+	It("traces proxy deletion", func() {
+		By("deleting the proxies")
+		args := append([]string{"delete", "proxy", "-n", proxyNS, "--wait=false"}, proxyNames...)
+		_, err := utils.Run(exec.Command("kubectl", args...))
+		Expect(err).NotTo(HaveOccurred(), "Failed to delete proxies")
+
+		By("waiting for the proxies to be gone (finalizer ran provider.delete)")
+		Eventually(func(g Gomega) {
+			out, err := utils.Run(exec.Command("kubectl", "get", "proxy", "-n", proxyNS, "-o", "name"))
+			g.Expect(err).NotTo(HaveOccurred())
+			g.Expect(out).NotTo(ContainSubstring("proxy-tracing-e2e"))
+		}, 3*time.Minute).Should(Succeed())
+
+		By("finding a provider.delete trace for this run in Tempo")
+		traceID := eventuallyFindTrace(tempoURL, runID, "provider.delete", suiteStart)
+
+		By("asserting the deletion trace structure")
+		spanNames, _, err := tempoTrace(tempoURL, traceID)
+		Expect(err).NotTo(HaveOccurred())
+		Expect(spanNames).To(ContainElements("Reconcile Proxy", "reconcile.delete", "provider.delete"),
+			"trace %s is missing expected spans; got: %v", traceID, spanNames)
+	})
+})
+
+// preflightOTLP runs a one-shot curl pod inside the cluster POSTing to the
+// OTLP HTTP ingest, and fails with a clear message when it is unreachable.
+// The pod runs in the restricted-PSS operator namespace, hence the full
+// securityContext (same shape as the curl-metrics pod).
+func preflightOTLP(otlpEndpoint string) {
+	script := fmt.Sprintf(
+		"for i in $(seq 1 10); do "+
+			"code=$(curl -sS -o /dev/null -w '%%{http_code}' -X POST "+
+			"-H 'Content-Type: application/json' -d '{}' %s/v1/traces); "+
+			"echo \"attempt $i: HTTP $code\"; "+
+			"[ \"$code\" = \"200\" ] && echo OTLP_OK && exit 0; sleep 2; "+
+			"done; echo OTLP_UNREACHABLE; exit 1",
+		otlpEndpoint)
+	cmd := exec.Command("kubectl", "run", otlpProbePodName, "--restart=Never",
+		"--namespace", namespace,
+		"--image=curlimages/curl:latest",
+		"--overrides",
+		fmt.Sprintf(`{
+			"spec": {
+				"containers": [{
+					"name": "curl",
+					"image": "curlimages/curl:latest",
+					"command": ["/bin/sh", "-c"],
+					"args": [%q],
+					"securityContext": {
+						"readOnlyRootFilesystem": true,
+						"allowPrivilegeEscalation": false,
+						"capabilities": {
+							"drop": ["ALL"]
+						},
+						"runAsNonRoot": true,
+						"runAsUser": 1000,
+						"seccompProfile": {
+							"type": "RuntimeDefault"
+						}
+					}
+				}]
+			}
+		}`, script))
+	_, err := utils.Run(cmd)
+	Expect(err).NotTo(HaveOccurred(), "Failed to create the OTLP preflight pod")
+
+	Eventually(func(g Gomega) {
+		out, err := utils.Run(exec.Command("kubectl", "get", "pod", otlpProbePodName,
+			"-n", namespace, "-o", "jsonpath={.status.phase}"))
+		g.Expect(err).NotTo(HaveOccurred())
+		g.Expect(out).To(BeElementOf("Succeeded", "Failed"), "preflight pod still running")
+	}, 2*time.Minute).Should(Succeed())
+
+	logs, _ := utils.Run(exec.Command("kubectl", "logs", otlpProbePodName, "-n", namespace))
+	Expect(logs).To(ContainSubstring("OTLP_OK"),
+		"OTLP endpoint %s is not reachable from inside the kind cluster; curl output:\n%s",
+		otlpEndpoint, logs)
+}
+
+// otlpProbePodName mirrors the Describe-local constant for the helpers below.
+const otlpProbePodName = "curl-otlp"
+
+// newestControllerPod returns the most recently created controller pod —
+// right after a rollout, an unsorted lookup may pick the terminating one.
+func newestControllerPod(g Gomega) string {
+	out, err := utils.Run(exec.Command("kubectl", "get", "pods",
+		"-l", "control-plane=controller-manager", "-n", namespace,
+		"--sort-by=.metadata.creationTimestamp", "-o", "name"))
+	g.Expect(err).NotTo(HaveOccurred())
+	lines := utils.GetNonEmptyLines(out)
+	g.Expect(lines).NotTo(BeEmpty(), "no controller pods found")
+	return strings.TrimPrefix(lines[len(lines)-1], "pod/")
+}
+
+// eventuallyFindTrace polls Tempo until a trace containing a span with the
+// given name exists for this run, and returns its trace ID. The batch span
+// processor flushes every ~5s, so a couple of polls is normal.
+func eventuallyFindTrace(tempoURL, runID, spanName string, since time.Time) string {
+	var traceID string
+	query := fmt.Sprintf(`{resource.test.run.id=%q && name=%q}`, runID, spanName)
+	Eventually(func(g Gomega) {
+		ids, err := tempoSearch(tempoURL, query, since)
+		g.Expect(err).NotTo(HaveOccurred())
+		g.Expect(ids).NotTo(BeEmpty(), "no trace for %s yet (query: %s)", spanName, query)
+		traceID = ids[0]
+	}, 2*time.Minute).Should(Succeed())
+	return traceID
+}
+
+// tempoSearch runs a TraceQL query against Tempo's search API and returns
+// the matching trace IDs. start/end are Unix seconds.
+func tempoSearch(tempoURL, traceql string, since time.Time) ([]string, error) {
+	u, err := url.Parse(tempoURL + "/api/search")
+	if err != nil {
+		return nil, err
+	}
+	q := u.Query()
+	q.Set("q", traceql)
+	q.Set("start", strconv.FormatInt(since.Add(-5*time.Minute).Unix(), 10))
+	q.Set("end", strconv.FormatInt(time.Now().Add(time.Minute).Unix(), 10))
+	q.Set("limit", "20")
+	u.RawQuery = q.Encode()
+
+	body, err := tempoGet(u.String())
+	if err != nil {
+		return nil, err
+	}
+	var result struct {
+		Traces []struct {
+			TraceID string `json:"traceID"`
+		} `json:"traces"`
+	}
+	if err := json.Unmarshal(body, &result); err != nil {
+		return nil, fmt.Errorf("decoding Tempo search response: %w", err)
+	}
+	ids := make([]string, 0, len(result.Traces))
+	for _, t := range result.Traces {
+		ids = append(ids, t.TraceID)
+	}
+	return ids, nil
+}
+
+// tempoTrace fetches one trace and flattens it to a span-name list plus the
+// resource attributes. Tempo returns OTLP-JSON (batches → scopeSpans →
+// spans), not Jaeger's shape.
+func tempoTrace(tempoURL, traceID string) ([]string, map[string]string, error) {
+	body, err := tempoGet(tempoURL + "/api/traces/" + traceID)
+	if err != nil {
+		return nil, nil, err
+	}
+	var trace struct {
+		Batches []struct {
+			Resource struct {
+				Attributes []struct {
+					Key   string `json:"key"`
+					Value struct {
+						StringValue string `json:"stringValue"`
+					} `json:"value"`
+				} `json:"attributes"`
+			} `json:"resource"`
+			ScopeSpans []struct {
+				Spans []struct {
+					Name string `json:"name"`
+				} `json:"spans"`
+			} `json:"scopeSpans"`
+		} `json:"batches"`
+	}
+	if err := json.Unmarshal(body, &trace); err != nil {
+		return nil, nil, fmt.Errorf("decoding Tempo trace %s: %w", traceID, err)
+	}
+	var spanNames []string
+	resAttrs := map[string]string{}
+	for _, b := range trace.Batches {
+		for _, a := range b.Resource.Attributes {
+			if a.Value.StringValue != "" {
+				resAttrs[a.Key] = a.Value.StringValue
+			}
+		}
+		for _, ss := range b.ScopeSpans {
+			for _, s := range ss.Spans {
+				spanNames = append(spanNames, s.Name)
+			}
+		}
+	}
+	return spanNames, resAttrs, nil
+}
+
+func tempoGet(rawURL string) ([]byte, error) {
+	ctx, cancel := context.WithTimeout(context.Background(), 15*time.Second)
+	defer cancel()
+	req, err := http.NewRequestWithContext(ctx, http.MethodGet, rawURL, nil)
+	if err != nil {
+		return nil, err
+	}
+	resp, err := http.DefaultClient.Do(req)
+	if err != nil {
+		return nil, fmt.Errorf("querying Tempo: %w", err)
+	}
+	defer func() { _ = resp.Body.Close() }()
+	body, err := io.ReadAll(resp.Body)
+	if err != nil {
+		return nil, err
+	}
+	if resp.StatusCode != http.StatusOK {
+		return nil, fmt.Errorf("tempo returned %d for %s: %s", resp.StatusCode, rawURL, string(body))
+	}
+	return body, nil
+}