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Fixed upstream in PR #6934, which the maintainers released as a v2.0/v2.1 patch; upgrade to the patched release. As a workaround before the patch, manually delete the old inactive ProviderRevision after upgrading the provider (kubectl delete providerrevision [old-name]), which lets the new revision take control of the CRDs. Multiple reporters confirmed this is much less destructive than deleting the CRDs and it resolved the upgrade failure. Source: https://github.com/crossplane/crossplane/issues/6761
Source: https://github.com/crossplane/crossplane/issues/6761