diff --git a/cloud-deploy-pipeline.groovy b/cloud-deploy-pipeline.groovy
index e8776bb..144f604 100644
--- a/cloud-deploy-pipeline.groovy
+++ b/cloud-deploy-pipeline.groovy
@@ -49,6 +49,7 @@
  *   BATCH_SIZE                 Use batching for states, which may be targeted for huge amount of nodes. Format:
                                 - 10 - number of nodes
                                 - 10% - percentage of all targeted nodes
+ *   DIST_UPGRADE_NODES         Whether to run "apt-get dist-upgrade" on all nodes in cluster before deployment
 
  *
  * Test settings:
@@ -80,6 +81,7 @@
 python = new com.mirantis.mk.Python()
 salt = new com.mirantis.mk.Salt()
 test = new com.mirantis.mk.Test()
+debian = new com.mirantis.mk.Debian()
 
 _MAX_PERMITTED_STACKS = 2
 overwriteFile = "/srv/salt/reclass/classes/cluster/override.yml"
@@ -113,6 +115,10 @@
 if (common.validInputParam('BATCH_SIZE')) {
     batch_size = "${BATCH_SIZE}"
 }
+def upgrade_nodes = false
+if (common.validInputParam('DIST_UPGRADE_NODES')) {
+    upgrade_nodes = "${DIST_UPGRADE_NODES}".toBoolean()
+}
 
 timeout(time: 12, unit: 'HOURS') {
     node(slave_node) {
@@ -375,12 +381,20 @@
                     orchestrate.installFoundationInfra(venvPepper, staticMgmtNetwork, extra_tgt, batch_size)
 
                     if (common.checkContains('STACK_INSTALL', 'kvm')) {
+                        if (upgrade_nodes) {
+                            debian.osUpgradeNode(venvPepper, 'I@salt:control', 'dist-upgrade', 30, 20, batch_size)
+                            salt.checkTargetMinionsReady(['saltId': venvPepper, 'target': 'I@salt:control', wait: 60, timeout: 10])
+                        }
                         orchestrate.installInfraKvm(venvPepper, extra_tgt)
-                        orchestrate.installFoundationInfra(venvPepper, staticMgmtNetwork, extra_tgt)
+                        orchestrate.installFoundationInfra(venvPepper, staticMgmtNetwork, extra_tgt, batch_size)
                     }
 
                     orchestrate.validateFoundationInfra(venvPepper, extra_tgt)
                 }
+                if (upgrade_nodes) {
+                    debian.osUpgradeNode(venvPepper, 'not ( I@salt:master or I@salt:control )', 'dist-upgrade', false, 30, 10, batch_size)
+                    salt.checkTargetMinionsReady(['saltId': venvPepper, 'target': 'not ( I@salt:master or I@salt:control )', wait: 60, timeout: 10])
+                }
             }
 
             stage('Install infra') {
diff --git a/openstack-compute-install.groovy b/openstack-compute-install.groovy
index 8e483cb..c4db64b 100644
--- a/openstack-compute-install.groovy
+++ b/openstack-compute-install.groovy
@@ -105,9 +105,10 @@
                 }
             }
 
-            // host records for compute nodes are generated dynamically - so apply state after node setup
-            stage('Update Hosts file') {
-                salt.enforceState(pepperEnv, "I@linux:system", 'linux.network.host', true, true, batch_size)
+            // host records and fingerprints for compute nodes are generated dynamically - so apply state after node setup
+            stage('Update Hosts file and fingerprints') {
+                salt.enforceState(pepperEnv, "I@linux:network:host", 'linux.network.host', true, true, batch_size)
+                salt.enforceState(pepperEnv, "I@linux:system", 'openssh', true, true, batch_size)
             }
 
             // discover added compute hosts
diff --git a/upgrade-mcp-release.groovy b/upgrade-mcp-release.groovy
index 1a98f50..999f1d0 100644
--- a/upgrade-mcp-release.groovy
+++ b/upgrade-mcp-release.groovy
@@ -304,6 +304,44 @@
     }
 }
 
+def wa34245(cluster_name) {
+    def infraInitFile = "/srv/salt/reclass/classes/cluster/${cluster_name}/infra/init.yml"
+    def fixName = 'hosts_wa34245'
+    def fixFile = "/srv/salt/reclass/classes/cluster/${cluster_name}/infra/${fixName}.yml"
+    if (salt.testTarget(venvPepper, 'I@keystone:server')) {
+        def fixApplied = salt.cmdRun(venvPepper, 'I@salt:master', "grep -E '^- cluster.${cluster_name}.infra.${fixName}\$' ${infraInitFile}", false, null, true).get('return')[0].values()[0].replaceAll('Salt command execution success', '').trim()
+        if (!fixApplied) {
+            def fixFileContent = []
+            def containsFix = salt.cmdRun(venvPepper, 'I@salt:master', "grep -E '^- system\\.linux\\.network\\.hosts\\.openstack\$' ${infraInitFile}", false, null, true).get('return')[0].values()[0].replaceAll('Salt command execution success', '').trim()
+            if (!containsFix) {
+                fixFileContent << '- system.linux.network.hosts.openstack'
+            }
+            if (salt.testTarget(venvPepper, 'I@gnocchi:server')) {
+                containsFix = salt.cmdRun(venvPepper, 'I@salt:master', "grep -E '^- system\\.linux\\.network\\.hosts\\.openstack\\.telemetry\$' ${infraInitFile}", false, null, true).get('return')[0].values()[0].replaceAll('Salt command execution success', '').trim()
+                if (!containsFix) {
+                    fixFileContent << '- system.linux.network.hosts.openstack.telemetry'
+                }
+            }
+            if (salt.testTarget(venvPepper, 'I@manila:api')) {
+                containsFix = salt.cmdRun(venvPepper, 'I@salt:master', "grep -E '^- system\\.linux\\.network\\.hosts\\.openstack\\.share\$' ${infraInitFile}", false, null, true).get('return')[0].values()[0].replaceAll('Salt command execution success', '').trim()
+                if (!containsFix) {
+                    fixFileContent << '- system.linux.network.hosts.openstack.share'
+                }
+            }
+            if (salt.testTarget(venvPepper, 'I@barbican:server')) {
+                containsFix = salt.cmdRun(venvPepper, 'I@salt:master', "grep -E '^- system\\.linux\\.network\\.hosts\\.openstack\\.kmn\$' ${infraInitFile}", false, null, true).get('return')[0].values()[0].replaceAll('Salt command execution success', '').trim()
+                if (!containsFix) {
+                    fixFileContent << '- system.linux.network.hosts.openstack.kmn'
+                }
+            }
+            if (fixFileContent) {
+                salt.cmdRun(venvPepper, 'I@salt:master', "echo 'classes:\n${fixFileContent.join('\n')}' > ${fixFile}")
+                salt.cmdRun(venvPepper, 'I@salt:master', "sed -i '/^parameters:/i - cluster.${cluster_name}.infra.${fixName}' ${infraInitFile}")
+            }
+        }
+    }
+}
+
 def archiveReclassInventory(filename) {
     def _tmp_file = '/tmp/' + filename + UUID.randomUUID().toString().take(8)
     // jenkins may fail at overheap. Compress data with gzip like WA
@@ -498,6 +536,7 @@
                     }
 
                     wa32284(cluster_name)
+                    wa34245(cluster_name)
 
                     salt.cmdRun(venvPepper, 'I@salt:master', "cd /srv/salt/reclass/classes/system && git checkout ${reclassSystemBranch}")
                     // Add kubernetes-extra repo