[AISOS-376] fix: address CI failures (attempt 3)

Author: Forge

internal/controllers/generic/status/conditions.go

@@ -42,7 +42,6 @@ func SetCommonConditions[T any](
 ) {
 	availableCondition := applyconfigv1.Condition().
 		WithType(orcv1alpha1.ConditionAvailable).
-		WithStatus(availableStatus).
 		WithObservedGeneration(orcObject.GetGeneration())
 	progressingCondition := applyconfigv1.Condition().
 		WithType(orcv1alpha1.ConditionProgressing).
@@ -79,6 +78,18 @@ func SetCommonConditions[T any](
 		}
 	}
 
+	// When a terminal error is present, the resource is definitively unavailable.
+	// Override Unknown → False so the Available condition reflects the severity.
+	if availableStatus != metav1.ConditionTrue {
+		err := reconcileStatus.GetError()
+		var terminalError *orcerrors.TerminalError
+		if errors.As(err, &terminalError) {
+			availableStatus = metav1.ConditionFalse
+		}
+	}
+
+	availableCondition.WithStatus(availableStatus)
+
 	if availableStatus == metav1.ConditionTrue {
 		availableCondition.
 			WithReason(orcv1alpha1.ConditionReasonSuccess).