diff --git a/automation/check-patch.e2e-kubevirt-ipam-controller-functests.sh b/automation/check-patch.e2e-kubevirt-ipam-controller-functests.sh
index 0017c38b7..54460ee8d 100755
--- a/automation/check-patch.e2e-kubevirt-ipam-controller-functests.sh
+++ b/automation/check-patch.e2e-kubevirt-ipam-controller-functests.sh
@@ -19,6 +19,21 @@ teardown() {
     rm -rf "${TMP_COMPONENT_PATH}"
 }
 
+increase_ulimit() {
+    if [ -z "${OCI_BIN}" ];then
+      export OCI_BIN=$(if podman ps >/dev/null 2>&1; then echo podman; elif docker ps >/dev/null 2>&1; then echo docker; else echo "Neither podman nor docker is available." >&2; exit 1; fi)
+    fi
+
+    for node in $(./cluster/kubectl.sh get node --no-headers  -o custom-columns=":metadata.name"); do
+      $OCI_BIN exec -t $node bash -c "echo 'fs.inotify.max_user_watches=1048576' >> /etc/sysctl.conf"
+      $OCI_BIN exec -t $node bash -c "echo 'fs.inotify.max_user_instances=512' >> /etc/sysctl.conf"
+      $OCI_BIN exec -i $node bash -c "sysctl -p /etc/sysctl.conf"
+      if [[ "${node}" =~ worker ]]; then
+          ./cluster/kubectl.sh label nodes $node node-role.kubernetes.io/worker="" --overwrite=true
+      fi
+    done
+}
+
 main() {
     if [ "$GITHUB_ACTIONS" == "true" ]; then
         ARCH="amd64"
@@ -41,11 +56,12 @@ main() {
 
     cd ${TMP_COMPONENT_PATH}
     export KUBECONFIG=${TMP_COMPONENT_PATH}/.output/kubeconfig
-    export KIND_ARGS="-ic -i6 -mne"
+    export KIND_ARGS="-ic -i6 -mne -nse"
     make cluster-up
 
     trap teardown EXIT
 
+    increase_ulimit
     cd ${TMP_PROJECT_PATH}
     export KUBEVIRT_PROVIDER=external
     export DEV_IMAGE_REGISTRY=localhost:5000
@@ -53,6 +69,8 @@ main() {
     deploy_cnao
     deploy_cnao_cr
     ./hack/deploy-kubevirt.sh
+    ./cluster/kubectl.sh -n kubevirt patch kubevirt kubevirt --type=json --patch '[{"op":"add","path":"/spec/configuration/developerConfiguration","value":{"featureGates":[]}},{"op":"add","path":"/spec/configuration/developerConfiguration/featureGates/-","value":"NetworkBindingPlugins"},{"op":"add","path":"/spec/configuration/developerConfiguration/featureGates/-","value":"DynamicPodInterfaceNaming"}]'
+    ./cluster/kubectl.sh -n kubevirt patch kubevirt kubevirt --type=json --patch '[{"op":"add","path":"/spec/configuration/network","value":{"binding":{"managedTap":{"domainAttachmentType":"managedTap","migration":{}}}}}]'
     ./cluster/kubectl.sh -n kubevirt patch kubevirt kubevirt --type=merge --patch '{"spec":{"configuration":{"virtualMachineOptions":{"disableSerialConsoleLog":{}}}}}'
 
     cd ${TMP_COMPONENT_PATH}
diff --git a/components.yaml b/components.yaml
index 57797467d..aeaa3f52a 100644
--- a/components.yaml
+++ b/components.yaml
@@ -19,10 +19,10 @@ components:
     metadata: v0.45.0
   kubevirt-ipam-controller:
     url: https://github.com/kubevirt/ipam-extensions
-    commit: 74c7ef7860f52af37988d6777925c27c79564065
+    commit: 5e1af1665a9241c92dfc179bf1347630a62f05b8
     branch: main
     update-policy: tagged
-    metadata: v0.1.7-alpha
+    metadata: v0.1.9-alpha
   linux-bridge:
     url: https://github.com/containernetworking/plugins
     commit: 14bdce598f9d332303c375c35719c4a158f1e7db
diff --git a/data/kubevirt-ipam-controller/001-kubevirtipamcontroller.yaml b/data/kubevirt-ipam-controller/001-kubevirtipamcontroller.yaml
index 2b3fbadd0..f8736efec 100644
--- a/data/kubevirt-ipam-controller/001-kubevirtipamcontroller.yaml
+++ b/data/kubevirt-ipam-controller/001-kubevirtipamcontroller.yaml
@@ -217,6 +217,7 @@ spec:
               name: cert
               readOnly: true
           imagePullPolicy: {{ .ImagePullPolicy }}
+      priorityClassName: system-cluster-critical
       securityContext:
         runAsNonRoot: true
         seccompProfile:
diff --git a/pkg/components/components.go b/pkg/components/components.go
index 4c5c3ca50..c110405dc 100644
--- a/pkg/components/components.go
+++ b/pkg/components/components.go
@@ -40,8 +40,8 @@ const (
 	KubeRbacProxyImageDefault          = "quay.io/brancz/kube-rbac-proxy@sha256:e6a323504999b2a4d2a6bf94f8580a050378eba0900fd31335cf9df5787d9a9b"
 	KubeSecondaryDNSImageDefault       = "ghcr.io/kubevirt/kubesecondarydns@sha256:8273cdbc438e06864eaa8e47947bea18fa5118a97cdaddc41b5dfa6e13474c79"
 	CoreDNSImageDefault                = "registry.k8s.io/coredns/coredns@sha256:a0ead06651cf580044aeb0a0feba63591858fb2e43ade8c9dea45a6a89ae7e5e"
-	KubevirtIpamControllerImageDefault = "ghcr.io/kubevirt/ipam-controller@sha256:aad40edd34f65cf0e087969853d47065aaf411dccf618d196152b583d40300ba"
-	PasstBindingCNIImageDefault        = "ghcr.io/kubevirt/passt-binding-cni@sha256:981c01e0b94ae691ba8ced43c486930085186e9c40b22525c8f0229d1556ee69"
+	KubevirtIpamControllerImageDefault = "ghcr.io/kubevirt/ipam-controller@sha256:41c3a436d871110f995af6d0b3cff7a90fb53a5bad4d4e99ab0954c3e1b79279"
+	PasstBindingCNIImageDefault        = "ghcr.io/kubevirt/passt-binding-cni@sha256:21093fe555e8962f666002258ae3402315fae3d9ec2ae10128529ec0a305bad4"
 )
 
 type AddonsImages struct {
diff --git a/test/releases/99.0.0.go b/test/releases/99.0.0.go
index b3c8ca323..72eeb6c6f 100644
--- a/test/releases/99.0.0.go
+++ b/test/releases/99.0.0.go
@@ -84,13 +84,13 @@ func init() {
 				ParentName: "kubevirt-ipam-controller-manager",
 				ParentKind: "Deployment",
 				Name:       "manager",
-				Image:      "ghcr.io/kubevirt/ipam-controller@sha256:aad40edd34f65cf0e087969853d47065aaf411dccf618d196152b583d40300ba",
+				Image:      "ghcr.io/kubevirt/ipam-controller@sha256:41c3a436d871110f995af6d0b3cff7a90fb53a5bad4d4e99ab0954c3e1b79279",
 			},
 			{
 				ParentName: "passt-binding-cni",
 				ParentKind: "DaemonSet",
 				Name:       "installer",
-				Image:      "ghcr.io/kubevirt/passt-binding-cni@sha256:981c01e0b94ae691ba8ced43c486930085186e9c40b22525c8f0229d1556ee69",
+				Image:      "ghcr.io/kubevirt/passt-binding-cni@sha256:21093fe555e8962f666002258ae3402315fae3d9ec2ae10128529ec0a305bad4",
 			},
 		},
 		SupportedSpec: cnao.NetworkAddonsConfigSpec{