diff --git a/deployment/container-image-prepare/container-image-prepare-baremetal-ansible.j2.yaml b/deployment/container-image-prepare/container-image-prepare-baremetal-ansible.j2.yaml
index 8c89885de6..e22833ccc8 100644
--- a/deployment/container-image-prepare/container-image-prepare-baremetal-ansible.j2.yaml
+++ b/deployment/container-image-prepare/container-image-prepare-baremetal-ansible.j2.yaml
@@ -132,12 +132,3 @@ outputs:
 {% endfor %}
           when:
             - (step | int) == 1
-      upgrade_tasks:
-        - name: Make sure the Undercloud hostname is included in /etc/hosts
-          when:
-            - step|int == 1
-            - undercloud_hosts_entries is defined
-          lineinfile:
-            dest: /etc/hosts
-            line: "{{ '{{ ' }} undercloud_hosts_entries | join('') {{ ' }}' }}"
-            state: present
diff --git a/deployment/podman/podman-baremetal-ansible.yaml b/deployment/podman/podman-baremetal-ansible.yaml
index 8f2ac20384..37ec6fffda 100644
--- a/deployment/podman/podman-baremetal-ansible.yaml
+++ b/deployment/podman/podman-baremetal-ansible.yaml
@@ -160,6 +160,13 @@ outputs:
           when:
             - step|int == 1
           block:
+            - name: Make sure the Undercloud hostname is included in /etc/hosts
+              when:
+                - undercloud_hosts_entries is defined
+              lineinfile:
+                dest: /etc/hosts
+                line: "{{ undercloud_hosts_entries | join('') }}"
+                state: present
             - name: Set container_registry_insecure_registries fact.
               set_fact:
                 container_registry_insecure_registries: