diff --git a/addons/packages/vsphere-csi/2.4.0/bundle/config/overlays/update-csi-driver.yaml b/addons/packages/vsphere-csi/2.4.0/bundle/config/overlays/update-csi-driver.yaml
index 510cecd205..fa5716e45d 100644
--- a/addons/packages/vsphere-csi/2.4.0/bundle/config/overlays/update-csi-driver.yaml
+++ b/addons/packages/vsphere-csi/2.4.0/bundle/config/overlays/update-csi-driver.yaml
@@ -15,6 +15,8 @@ metadata:
   namespace: #@ values.vsphereCSI.namespace
 
 spec:
+  #@overlay/match
+  replicas: #@ values.vsphereCSI.deployment_replicas
   template:
     spec:
       containers:
diff --git a/addons/packages/vsphere-csi/2.4.0/bundle/config/values.yaml b/addons/packages/vsphere-csi/2.4.0/bundle/config/values.yaml
index 53324db71a..35856bef36 100644
--- a/addons/packages/vsphere-csi/2.4.0/bundle/config/values.yaml
+++ b/addons/packages/vsphere-csi/2.4.0/bundle/config/values.yaml
@@ -19,4 +19,5 @@ vsphereCSI:
   http_proxy: ""
   https_proxy: ""
   no_proxy: ""
+  deployment_replicas: 3
   windows_support: false
diff --git a/addons/packages/vsphere-csi/2.4.0/bundle/config/vsphereconf.lib.txt b/addons/packages/vsphere-csi/2.4.0/bundle/config/vsphereconf.lib.txt
index e1c67bf76d..c60d378f49 100644
--- a/addons/packages/vsphere-csi/2.4.0/bundle/config/vsphereconf.lib.txt
+++ b/addons/packages/vsphere-csi/2.4.0/bundle/config/vsphereconf.lib.txt
@@ -14,6 +14,17 @@ public-network = "(@=values.vsphereCSI.publicNetwork @)"
 (@ if values.vsphereCSI.region or values.vsphereCSI.zone: -@)
 
 [Labels]
+(@ if values.vsphereCSI.region and values.vsphereCSI.zone: -@)
+topology-categories = "(@=values.vsphereCSI.region @), (@=values.vsphereCSI.zone @)"
+(@ else: -@)
+(@ if values.vsphereCSI.region: -@)
+topology-categories = "(@=values.vsphereCSI.region @)"
+(@ end -@)
+(@ if values.vsphereCSI.zone: -@)
+topology-categories = "(@=values.vsphereCSI.zone @)"
+(@ end -@)
+(@ end -@)
+
 (@ if values.vsphereCSI.region: -@)
 region = "(@=values.vsphereCSI.region @)"
 (@ end -@)
diff --git a/addons/packages/vsphere-csi/2.4.0/package.yaml b/addons/packages/vsphere-csi/2.4.0/package.yaml
index 829a47305d..af7cb82c4e 100644
--- a/addons/packages/vsphere-csi/2.4.0/package.yaml
+++ b/addons/packages/vsphere-csi/2.4.0/package.yaml
@@ -12,8 +12,7 @@ spec:
     spec:
       fetch:
         - imgpkgBundle:
-            image: projects.registry.vmware.com/tce/vsphere-csi@sha256:34098c5e175b73e119d1ebeb34a7277125bafb5094f9decc891eb0af66ac9c4e
-      template:
+            image: projects.registry.vmware.com/tce/vsphere-csi@sha256:d9f712dec9e16421ef961b64204eda85a07eb56de2cf4026c895fc3ceb1705d4
         - ytt:
             paths:
               - config/