fix: set Progressing condition to False on successful reconciliation

The Progressing condition on ClusterExtension resources was always set
to status: True with reason: Succeeded after a successful reconciliation.
This is semantically incorrect — Progressing=True means "still working,"
which contradicts the Succeeded reason and the "Desired state reached"
message.

This fix changes the default Progressing status to ConditionFalse (done
progressing) and only sets ConditionTrue when there is an active
non-terminal error causing retries. Terminal errors correctly remain
ConditionFalse with reason Blocked.

Before:
  Installed=True  Progressing=True   reason=Succeeded  "Desired state reached"

After:
  Installed=True  Progressing=False  reason=Succeeded  "Desired state reached"

Signed-off-by: Venkatesh Durgam <vdurgam@redhat.com>
Co-authored-by: Cursor <cursoragent@cursor.com>

Author: vdurgam10

internal/operator-controller/controllers/clusterextension_controller_test.go

@@ -1352,7 +1352,7 @@ func TestClusterExtensionInstallationSucceeds(t *testing.T) {
 	t.Log("By checking the expected progressing conditions")
 	progressingCond := apimeta.FindStatusCondition(clusterExtension.Status.Conditions, ocv1.TypeProgressing)
 	require.NotNil(t, progressingCond)
-	require.Equal(t, metav1.ConditionTrue, progressingCond.Status)
+	require.Equal(t, metav1.ConditionFalse, progressingCond.Status)
 	require.Equal(t, ocv1.ReasonSucceeded, progressingCond.Reason)
 
 	require.NoError(t, cl.DeleteAllOf(ctx, &ocv1.ClusterExtension{}))
@@ -2674,7 +2674,7 @@ func TestResolutionFallbackToInstalledBundle(t *testing.T) {
 
 		progCond := apimeta.FindStatusCondition(ext.Status.Conditions, ocv1.TypeProgressing)
 		require.NotNil(t, progCond)
-		require.Equal(t, metav1.ConditionTrue, progCond.Status)
+		require.Equal(t, metav1.ConditionFalse, progCond.Status)
 		require.Equal(t, ocv1.ReasonSucceeded, progCond.Reason)
 
 		// Verify all conditions are present and valid after first reconcile
@@ -2695,7 +2695,7 @@ func TestResolutionFallbackToInstalledBundle(t *testing.T) {
 		// Progressing should be Succeeded (apply completed successfully)
 		progCond = apimeta.FindStatusCondition(ext.Status.Conditions, ocv1.TypeProgressing)
 		require.NotNil(t, progCond)
-		require.Equal(t, metav1.ConditionTrue, progCond.Status)
+		require.Equal(t, metav1.ConditionFalse, progCond.Status)
 		require.Equal(t, ocv1.ReasonSucceeded, progCond.Reason)
 
 		// Installed should be True (maintaining current version)
@@ -2828,7 +2828,7 @@ func TestResolutionFallbackToInstalledBundle(t *testing.T) {
 
 		progCond := apimeta.FindStatusCondition(ext.Status.Conditions, ocv1.TypeProgressing)
 		require.NotNil(t, progCond)
-		require.Equal(t, metav1.ConditionTrue, progCond.Status)
+		require.Equal(t, metav1.ConditionFalse, progCond.Status)
 		require.Equal(t, ocv1.ReasonSucceeded, progCond.Reason)
 
 		// Note: When falling back without catalog access initially, deprecation conditions
@@ -2851,7 +2851,7 @@ func TestResolutionFallbackToInstalledBundle(t *testing.T) {
 
 		progCond = apimeta.FindStatusCondition(ext.Status.Conditions, ocv1.TypeProgressing)
 		require.NotNil(t, progCond)
-		require.Equal(t, metav1.ConditionTrue, progCond.Status)
+		require.Equal(t, metav1.ConditionFalse, progCond.Status)
 		require.Equal(t, ocv1.ReasonSucceeded, progCond.Reason)
 
 		// Verify all conditions remain valid after upgrade

internal/operator-controller/controllers/common_controller.go

@@ -148,13 +148,14 @@ func setInstallStatus(ext *ocv1.ClusterExtension, installStatus *ocv1.ClusterExt
 func setStatusProgressing(ext *ocv1.ClusterExtension, err error) {
 	progressingCond := metav1.Condition{
 		Type:               ocv1.TypeProgressing,
-		Status:             metav1.ConditionTrue,
+		Status:             metav1.ConditionFalse,
 		Reason:             ocv1.ReasonSucceeded,
 		Message:            "Desired state reached",
 		ObservedGeneration: ext.GetGeneration(),
 	}
 
 	if err != nil {
+		progressingCond.Status = metav1.ConditionTrue
 		progressingCond.Reason = ocv1.ReasonRetrying
 		// Unwrap TerminalError to avoid "terminal error:" prefix in message
 		progressingCond.Message = errorutil.SanitizeNetworkError(errorutil.UnwrapTerminal(err))

internal/operator-controller/controllers/common_controller_test.go

@@ -26,12 +26,12 @@ func TestSetStatusProgressing(t *testing.T) {
 		expected         metav1.Condition
 	}{
 		{
-			name:             "non-nil ClusterExtension, nil error, Progressing condition has status True with reason Success",
+			name:             "non-nil ClusterExtension, nil error, Progressing condition has status False with reason Success",
 			err:              nil,
 			clusterExtension: &ocv1.ClusterExtension{},
 			expected: metav1.Condition{
 				Type:    ocv1.TypeProgressing,
-				Status:  metav1.ConditionTrue,
+				Status:  metav1.ConditionFalse,
 				Reason:  ocv1.ReasonSucceeded,
 				Message: "Desired state reached",
 			},