diff --git a/Makefile b/Makefile
index 0f7cae0f4..bb142dcce 100644
--- a/Makefile
+++ b/Makefile
@@ -192,7 +192,7 @@ $(UPDATES_IMG): prepare-test-deps
 	test/prepare-updates-img
 
 create-updates.img: bots
-	-rm $(UPDATES_IMG)
+	-rm *updates.img
 	make $(UPDATES_IMG)
 
 test/reference: test/common
diff --git a/test/machine_install.py b/test/machine_install.py
index a273eaba7..a78d2656f 100755
--- a/test/machine_install.py
+++ b/test/machine_install.py
@@ -20,6 +20,7 @@
 import subprocess
 import sys
 import time
+from tempfile import TemporaryDirectory
 
 WEBUI_TEST_DIR = os.path.dirname(__file__)
 ROOT_DIR = os.path.dirname(WEBUI_TEST_DIR)
@@ -83,22 +84,36 @@ def _serve_payload(self):
 
         return payload_cached_name, http_payload_port
 
-    def _write_interactive_defaults_ks(self):
+    def _write_interactive_defaults_ks(self, updates_image, updates_image_edited):
         payload_cached_name, http_payload_port = self._serve_payload()
         content = f'liveimg --url="http://10.0.2.2:{http_payload_port}/{payload_cached_name}"'
-        Machine.execute(self, f'echo \'{content}\' > /usr/share/anaconda/interactive-defaults.ks')
+        defaults_path = "usr/share/anaconda/"
+        print("Adding interactive defaults to updates.img")
+        with TemporaryDirectory() as tmp_dir:
+            os.makedirs(f"{tmp_dir}/{defaults_path}")
+            # unpack initrd to the temporary directory
+            os.system(f"cd {tmp_dir} && gzip -dc {updates_image} | cpio -idu")
+            # add new interactive-defaults.ks (have to be available at start of the installer)
+            with open(f"{tmp_dir}/{defaults_path}/interactive-defaults.ks", "wt", encoding="utf-8") as f:
+                f.write(content)
+            # pack the updates.img again and replace the original one
+            os.system(f"cd {tmp_dir} && find . | cpio -c -o | gzip -9cv > {updates_image_edited}")
 
     def start(self):
-        update_img_file = os.path.join(ROOT_DIR, "updates.img")
-        if not os.path.exists(update_img_file):
-            raise FileNotFoundError("Missing updates.img file")
-
-        self.http_updates_img_port = self._serve_updates_img()
-
         self.payload_path = os.path.join(BOTS_DIR, "./images/fedora-rawhide-anaconda-payload")
         if not os.path.exists(self.payload_path):
             raise FileNotFoundError(f"Missing payload file {self.payload_path}; use 'make payload'.")
 
+        update_img_global_file = os.path.join(ROOT_DIR, "updates.img")
+        update_img_file = os.path.join(ROOT_DIR, self.label + "-updates.img")
+        if not os.path.exists(update_img_global_file):
+            raise FileNotFoundError("Missing updates.img file")
+
+        if not self.is_live():
+            # Configure the payload in interactive-defaults.ks
+            self._write_interactive_defaults_ks(update_img_global_file, update_img_file)
+
+        self.http_updates_img_port = self._serve_updates_img()
 
         iso_path = f"{os.getcwd()}/bots/images/{self.image}"
         extra_args = ""
@@ -136,7 +151,7 @@ def start(self):
                 "--noautoconsole "
                 f"--graphics vnc,listen={self.ssh_address} "
                 "--extra-args "
-                f"'inst.sshd inst.webui.remote inst.webui inst.updates=http://10.0.2.2:{self.http_updates_img_port}/updates.img' "
+                f"'inst.sshd inst.webui.remote inst.webui inst.updates=http://10.0.2.2:{self.http_updates_img_port}/{self.label}-updates.img' "
                 "--network none "
                 f"--qemu-commandline="
                 "'-netdev user,id=hostnet0,"
@@ -153,9 +168,6 @@ def start(self):
             if not self.is_live():
                 Machine.wait_boot(self, timeout_sec=300)
 
-                # Configure the payload in interactive-defaults.ks
-                self._write_interactive_defaults_ks()
-
                 for _ in range(30):
                     try:
                         Machine.execute(self, "journalctl -t anaconda | grep 'anaconda: ui.webui: cockpit web view has been started'")