diff --git a/charts/kubezero-argocd/values.yaml b/charts/kubezero-argocd/values.yaml
index d187f03b..23af3b7c 100644
--- a/charts/kubezero-argocd/values.yaml
+++ b/charts/kubezero-argocd/values.yaml
@@ -106,6 +106,10 @@ argo-cd:
 argocd-applicationset:
   enabled: false
 
+  # Prevent accidental cascading deletes of Applications
+  args:
+    policy: create-update
+
   rbac:
     pspEnabled: false
 
diff --git a/charts/kubezero/Chart.yaml b/charts/kubezero/Chart.yaml
index 4efec973..8685e93a 100644
--- a/charts/kubezero/Chart.yaml
+++ b/charts/kubezero/Chart.yaml
@@ -2,7 +2,7 @@ apiVersion: v2
 name: kubezero
 description: KubeZero - Bootstrap and ArgoCD Root App of Apps chart
 type: application
-version: 1.20.8-4
+version: 1.20.8-5
 home: https://kubezero.com
 icon: https://cdn.zero-downtime.net/assets/kubezero/logo-small-64.png
 keywords:
diff --git a/charts/kubezero/bootstrap.sh b/charts/kubezero/bootstrap.sh
index 7412fd2f..1a4b6a01 100755
--- a/charts/kubezero/bootstrap.sh
+++ b/charts/kubezero/bootstrap.sh
@@ -194,9 +194,13 @@ function metrics-pre() {
 
 
 ## MAIN ##
-# First lets generate kubezero.yaml
-# Add all yaml files in $CLUSTER
-VALUES="$(find $CLUSTER -maxdepth 1 -name '*.yaml' | sort | tr '\n' ',')"
+# First lets generate kubezero.yaml, either plain values.yaml or application.yaml for ArgoCD
+if [ -f $CLUSTER/kubezero/application.yaml ]; then
+  yq r $CLUSTER/kubezero/application.yaml 'spec.source.helm.values' > $TMPDIR/_argovalues.yaml
+  VALUES=$TMPDIR/_argovalues.yaml
+else
+  VALUES="$(find $CLUSTER -name '*.yaml' | sort | tr '\n' ',')"
+fi
 helm template $(chart_location kubezero) -f ${VALUES%%,} $KUBEZERO_VERSION > $TMPDIR/kubezero.yaml
 
 # Resolve all the all enabled artifacts in order of their appearance
diff --git a/charts/kubezero/templates/argocd.yaml b/charts/kubezero/templates/argocd.yaml
index 5cf29326..ef0e430d 100644
--- a/charts/kubezero/templates/argocd.yaml
+++ b/charts/kubezero/templates/argocd.yaml
@@ -24,6 +24,11 @@ istio:
   {{- end }}
 {{- end }}
 
+{{- with index .Values "argocd" "argocd-applicationset" }}
+argocd-applicationset:
+  {{ toYaml . | nindent 2 }}
+{{- end }}
+
 {{- end }}
 
 {{- define "argocd-argo" }}
diff --git a/charts/kubezero/templates/kubezero.yaml b/charts/kubezero/templates/kubezero.yaml
index a2892759..3ff10271 100644
--- a/charts/kubezero/templates/kubezero.yaml
+++ b/charts/kubezero/templates/kubezero.yaml
@@ -56,9 +56,8 @@ spec:
     targetRevision: {{ .Values.kubezero.gitSync.targetRevision }}
     path: {{ .Values.kubezero.gitSync.path }}
 
-    helm:
-      valueFiles:
-      - kubezero.yaml
+  directory:
+    recurse: true
 
   destination:
     server: https://kubernetes.default.svc
diff --git a/charts/kubezero/values.yaml b/charts/kubezero/values.yaml
index 83962624..8ccfdfbc 100644
--- a/charts/kubezero/values.yaml
+++ b/charts/kubezero/values.yaml
@@ -62,7 +62,7 @@ logging:
   enabled: false
   crds: true
   namespace: logging
-  targetRevision: 0.7.8
+  targetRevision: 0.7.9
 
 argocd:
   enabled: false