diff --git a/README.md b/README.md
index c674ccfbc..0650738a2 100644
--- a/README.md
+++ b/README.md
@@ -838,15 +838,15 @@ module "cluster_pattern" {
 
 | Name | Source | Version |
 |------|--------|---------|
-| <a name="module_bastion_host"></a> [bastion\_host](#module\_bastion\_host) | terraform-ibm-modules/landing-zone-vsi/ibm | 2.12.1 |
+| <a name="module_bastion_host"></a> [bastion\_host](#module\_bastion\_host) | terraform-ibm-modules/landing-zone-vsi/ibm | 3.0.0 |
 | <a name="module_dynamic_values"></a> [dynamic\_values](#module\_dynamic\_values) | ./dynamic_values | n/a |
-| <a name="module_f5_vsi"></a> [f5\_vsi](#module\_f5\_vsi) | terraform-ibm-modules/landing-zone-vsi/ibm | 2.12.1 |
+| <a name="module_f5_vsi"></a> [f5\_vsi](#module\_f5\_vsi) | terraform-ibm-modules/landing-zone-vsi/ibm | 3.0.0 |
 | <a name="module_key_management"></a> [key\_management](#module\_key\_management) | ./kms | n/a |
 | <a name="module_placement_group_map"></a> [placement\_group\_map](#module\_placement\_group\_map) | ./dynamic_values/config_modules/list_to_map | n/a |
 | <a name="module_ssh_keys"></a> [ssh\_keys](#module\_ssh\_keys) | ./ssh_key | n/a |
 | <a name="module_teleport_config"></a> [teleport\_config](#module\_teleport\_config) | ./teleport_config | n/a |
-| <a name="module_vpc"></a> [vpc](#module\_vpc) | terraform-ibm-modules/landing-zone-vpc/ibm | 7.7.0 |
-| <a name="module_vsi"></a> [vsi](#module\_vsi) | terraform-ibm-modules/landing-zone-vsi/ibm | 2.12.1 |
+| <a name="module_vpc"></a> [vpc](#module\_vpc) | terraform-ibm-modules/landing-zone-vpc/ibm | 7.10.0 |
+| <a name="module_vsi"></a> [vsi](#module\_vsi) | terraform-ibm-modules/landing-zone-vsi/ibm | 3.0.0 |
 
 ### Resources
 
diff --git a/bastion_host.tf b/bastion_host.tf
index db5b32105..5303f8c15 100644
--- a/bastion_host.tf
+++ b/bastion_host.tf
@@ -42,7 +42,7 @@ module "teleport_config" {
 
 module "bastion_host" {
   source                        = "terraform-ibm-modules/landing-zone-vsi/ibm"
-  version                       = "2.12.1"
+  version                       = "3.0.0"
   for_each                      = local.bastion_vsi_map
   resource_group_id             = each.value.resource_group == null ? null : local.resource_groups[each.value.resource_group]
   create_security_group         = each.value.security_group == null ? false : true
diff --git a/f5_vsi.tf b/f5_vsi.tf
index 6b44d4558..b4c30e750 100644
--- a/f5_vsi.tf
+++ b/f5_vsi.tf
@@ -117,7 +117,7 @@ locals {
 
 module "f5_vsi" {
   source                        = "terraform-ibm-modules/landing-zone-vsi/ibm"
-  version                       = "2.12.1"
+  version                       = "3.0.0"
   for_each                      = local.f5_vsi_map
   resource_group_id             = each.value.resource_group == null ? null : local.resource_groups[each.value.resource_group]
   create_security_group         = each.value.security_group == null ? false : true
diff --git a/main.tf b/main.tf
index 7bc74ccc0..d962e2788 100644
--- a/main.tf
+++ b/main.tf
@@ -8,7 +8,7 @@ locals {
 
 module "vpc" {
   source                                 = "terraform-ibm-modules/landing-zone-vpc/ibm"
-  version                                = "7.7.0"
+  version                                = "7.10.0"
   for_each                               = local.vpc_map
   depends_on                             = [ibm_iam_authorization_policy.policy]
   name                                   = each.value.prefix
diff --git a/patterns/vsi-extension/main.tf b/patterns/vsi-extension/main.tf
index 04348b0c3..eac0dc8e2 100644
--- a/patterns/vsi-extension/main.tf
+++ b/patterns/vsi-extension/main.tf
@@ -70,7 +70,7 @@ locals {
 
 module "vsi" {
   source                        = "terraform-ibm-modules/landing-zone-vsi/ibm"
-  version                       = "2.8.2"
+  version                       = "3.0.0"
   resource_group_id             = data.ibm_is_vpc.vpc_by_id.resource_group
   create_security_group         = true
   prefix                        = "${var.prefix}-vsi"
diff --git a/patterns/vsi-extension/variables.tf b/patterns/vsi-extension/variables.tf
index 6e69eabed..d2284578c 100644
--- a/patterns/vsi-extension/variables.tf
+++ b/patterns/vsi-extension/variables.tf
@@ -80,8 +80,8 @@ variable "existing_kms_instance_guid" {
 
 variable "skip_iam_authorization_policy" {
   type        = bool
-  description = "Set to `true` to skip the creation of an IAM authorization policy that permits all storage blocks to read the encryption key from the KMS instance. If set to `false` (and creating a policy), specify the GUID of the KMS instance in the `existing_kms_instance_guid` variable."
-  default     = false
+  description = "By default (true), the Landing Zone VPC creates an IAM authorization policy that permits all storage blocks to read the encryption key from the KMS instance. Set to false to create the authorization policy in a different KMS instance, and specify the GUID of the KMS instance in the existing_kms_instance_guid variable."
+  default     = true
 }
 
 variable "vsi_per_subnet" {
diff --git a/virtual_servers.tf b/virtual_servers.tf
index af73d8859..8d4fe56ad 100644
--- a/virtual_servers.tf
+++ b/virtual_servers.tf
@@ -41,7 +41,7 @@ data "ibm_is_image" "image" {
 
 module "vsi" {
   source                        = "terraform-ibm-modules/landing-zone-vsi/ibm"
-  version                       = "2.12.1"
+  version                       = "3.0.0"
   for_each                      = local.vsi_map
   resource_group_id             = each.value.resource_group == null ? null : local.resource_groups[each.value.resource_group]
   create_security_group         = each.value.security_group == null ? false : true