diff --git a/tests/e2e/kubetest2-kops/deployer/common.go b/tests/e2e/kubetest2-kops/deployer/common.go
index 82f5d687f8b79..417ea9a70e4ff 100644
--- a/tests/e2e/kubetest2-kops/deployer/common.go
+++ b/tests/e2e/kubetest2-kops/deployer/common.go
@@ -20,14 +20,12 @@ import (
 	"errors"
 	"fmt"
 	"os"
-	"path"
 	"path/filepath"
 	"strings"
 	"time"
 
 	"k8s.io/klog/v2"
 	"k8s.io/kops/tests/e2e/kubetest2-kops/gce"
-	"k8s.io/kops/tests/e2e/pkg/kops"
 	"k8s.io/kops/tests/e2e/pkg/target"
 	"k8s.io/kops/tests/e2e/pkg/util"
 	"sigs.k8s.io/kubetest2/pkg/boskos"
@@ -51,14 +49,6 @@ func (d *deployer) initialize() error {
 			return fmt.Errorf("init failed to check up flags: %v", err)
 		}
 	}
-	if d.KopsVersionMarker != "" {
-		d.KopsBinaryPath = path.Join(d.commonOptions.RunDir(), "kops")
-		baseURL, err := kops.DownloadKops(d.KopsVersionMarker, d.KopsBinaryPath)
-		if err != nil {
-			return fmt.Errorf("init failed to download kops from url: %v", err)
-		}
-		d.KopsBaseURL = baseURL
-	}
 
 	switch d.CloudProvider {
 	case "aws":
diff --git a/tests/e2e/kubetest2-kops/deployer/up.go b/tests/e2e/kubetest2-kops/deployer/up.go
index 604060e4d7a04..123aac1b9cfcf 100644
--- a/tests/e2e/kubetest2-kops/deployer/up.go
+++ b/tests/e2e/kubetest2-kops/deployer/up.go
@@ -20,6 +20,7 @@ import (
 	"errors"
 	"fmt"
 	osexec "os/exec"
+	"path"
 	"strings"
 	"time"
 
@@ -41,6 +42,17 @@ func (d *deployer) Up() error {
 		return err
 	}
 
+	// kops is fetched when --up is called instead of init to support a scenario where k/k is being built
+	// and a kops build is not ready yet
+	if d.KopsVersionMarker != "" {
+		d.KopsBinaryPath = path.Join(d.commonOptions.RunDir(), "kops")
+		baseURL, err := kops.DownloadKops(d.KopsVersionMarker, d.KopsBinaryPath)
+		if err != nil {
+			return fmt.Errorf("init failed to download kops from url: %v", err)
+		}
+		d.KopsBaseURL = baseURL
+	}
+
 	if d.terraform == nil {
 		klog.Info("Cleaning up any leaked resources from previous cluster")
 		// Intentionally ignore errors:
@@ -118,6 +130,7 @@ func (d *deployer) createCluster(zones []string, adminAccess string, yes bool) e
 		"--kubernetes-version", d.KubernetesVersion,
 		"--ssh-public-key", d.SSHPublicKeyPath,
 		"--set", "cluster.spec.nodePortAccess=0.0.0.0/0",
+		"--set", `spec.containerd.configAdditions=plugins."io.containerd.grpc.v1.cri".containerd.runtimes.test-handler.runtime_type=io.containerd.runc.v2`,
 	}
 	if yes {
 		args = append(args, "--yes")