diff --git a/pkg/controllers/member/internalmembercluster/v1beta1/controller_v1beta1.go b/pkg/controllers/member/internalmembercluster/v1beta1/controller_v1beta1.go
index 0e2fe679..e32459d5 100644
--- a/pkg/controllers/member/internalmembercluster/v1beta1/controller_v1beta1.go
+++ b/pkg/controllers/member/internalmembercluster/v1beta1/controller_v1beta1.go
@@ -10,6 +10,7 @@ import (
 	"fmt"
 	"time"
 
+	clusterv1beta1 "go.goms.io/fleet/apis/cluster/v1beta1"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
@@ -17,9 +18,9 @@ import (
 	"k8s.io/apimachinery/pkg/util/rand"
 	"k8s.io/klog/v2"
 	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/builder"
 	"sigs.k8s.io/controller-runtime/pkg/client"
-
-	clusterv1beta1 "go.goms.io/fleet/apis/cluster/v1beta1"
+	"sigs.k8s.io/controller-runtime/pkg/predicate"
 
 	fleetnetv1alpha1 "go.goms.io/fleet-networking/api/v1alpha1"
 	fleetnetv1beta1 "go.goms.io/fleet-networking/api/v1beta1"
@@ -53,26 +54,26 @@ type Reconciler struct {
 func (r *Reconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Result, error) {
 	imcKRef := klog.KRef(req.Namespace, req.Name)
 	startTime := time.Now()
-	klog.V(2).InfoS("Reconciliation starts", "internalMemberCluster", imcKRef)
+	klog.V(2).InfoS("Reconciliation starts", "internalMemberCluster", imcKRef, "agentType", r.AgentType)
 	defer func() {
 		latency := time.Since(startTime).Milliseconds()
-		klog.V(2).InfoS("Reconciliation ends", "internalMemberCluster", imcKRef, "latency", latency)
+		klog.V(2).InfoS("Reconciliation ends", "internalMemberCluster", imcKRef, "latency", latency, "agentType", r.AgentType)
 	}()
 
 	var imc clusterv1beta1.InternalMemberCluster
 	if err := r.HubClient.Get(ctx, req.NamespacedName, &imc); err != nil {
 		if apierrors.IsNotFound(err) {
-			klog.V(4).InfoS("internal member cluster object is not found", "internalMemberCluster", imcKRef)
+			klog.V(4).InfoS("internal member cluster object is not found", "internalMemberCluster", imcKRef, "agentType", r.AgentType)
 			return ctrl.Result{}, nil
 		}
-		klog.ErrorS(err, "Failed to get internal member cluster object", "internalMemberCluster", imcKRef)
+		klog.ErrorS(err, "Failed to get internal member cluster object", "internalMemberCluster", imcKRef, "agentType", r.AgentType)
 		return ctrl.Result{}, err
 	}
 
 	switch imc.Spec.State {
 	case clusterv1beta1.ClusterStateLeave:
 		// The member cluster is leaving the fleet.
-		klog.V(2).InfoS("member cluster has left the fleet; performing cleanup", "internalMemberCluster", imcKRef)
+		klog.V(2).InfoS("member cluster has left the fleet; performing cleanup", "internalMemberCluster", imcKRef, "agentType", r.AgentType)
 
 		// Clean up fleet networking related resources.
 		if r.AgentType == clusterv1beta1.MultiClusterServiceAgent && r.EnabledNetworkingFeatures {
@@ -100,7 +101,7 @@ func (r *Reconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Resu
 		requeueAfter := time.Millisecond * (time.Duration(hbInterval) + time.Duration(rand.Int63nRange(0, jitterRange)-jitterRange/2))
 		return ctrl.Result{RequeueAfter: requeueAfter}, nil
 	default:
-		klog.ErrorS(fmt.Errorf("cluster is of an invalid state"), "internalMemberCluster", imcKRef, "clusterState", imc.Spec.State)
+		klog.ErrorS(fmt.Errorf("cluster is of an invalid state"), "internalMemberCluster", imcKRef, "clusterState", imc.Spec.State, "agentType", r.AgentType)
 	}
 
 	return ctrl.Result{}, nil
@@ -137,12 +138,7 @@ func (r *Reconciler) updateAgentStatus(ctx context.Context, imc *clusterv1beta1.
 	}
 
 	if err := r.HubClient.Status().Update(ctx, imc); err != nil {
-		if apierrors.IsConflict(err) {
-			klog.V(2).InfoS("Failed to update internal member cluster status due to conflicts", "internalMemberCluster", klog.KObj(imc))
-			return nil
-		}
-
-		klog.ErrorS(err, "Failed to update internal member cluster status", "internalMemberCluster", klog.KObj(imc))
+		klog.ErrorS(err, "Failed to update internal member cluster status", "internalMemberCluster", imcKObj, "agentType", r.AgentType)
 		return err
 	}
 	return nil
@@ -228,6 +224,6 @@ func (r *Reconciler) cleanupServiceExportRelatedResources(ctx context.Context) e
 // SetupWithManager sets up the controller with the Manager.
 func (r *Reconciler) SetupWithManager(mgr ctrl.Manager) error {
 	return ctrl.NewControllerManagedBy(mgr).
-		For(&clusterv1beta1.InternalMemberCluster{}).
+		For(&clusterv1beta1.InternalMemberCluster{}, builder.WithPredicates(predicate.GenerationChangedPredicate{})).
 		Complete(r)
 }
diff --git a/pkg/controllers/member/internalmembercluster/v1beta1/suite_test.go b/pkg/controllers/member/internalmembercluster/v1beta1/suite_test.go
index d3bf7760..2f8969c9 100644
--- a/pkg/controllers/member/internalmembercluster/v1beta1/suite_test.go
+++ b/pkg/controllers/member/internalmembercluster/v1beta1/suite_test.go
@@ -7,6 +7,7 @@ package v1beta1
 
 import (
 	"context"
+	"flag"
 	"go/build"
 	"log"
 	"os"
@@ -23,7 +24,6 @@ import (
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/envtest"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 	metricsserver "sigs.k8s.io/controller-runtime/pkg/metrics/server"
 
 	clusterv1beta1 "go.goms.io/fleet/apis/cluster/v1beta1"
@@ -68,8 +68,14 @@ func TestAPIs(t *testing.T) {
 }
 
 var _ = BeforeSuite(func() {
-	klog.SetLogger(zap.New(zap.WriteTo(GinkgoWriter), zap.UseDevMode(true)))
 
+	By("Setup klog")
+	var err error
+	fs := flag.NewFlagSet("klog", flag.ContinueOnError)
+	klog.InitFlags(fs)
+	Expect(fs.Parse([]string{"--v", "5", "-add_dir_header", "true"})).Should(Succeed())
+	klog.InitFlags(flag.CommandLine)
+	flag.Parse()
 	ctx, cancel = context.WithCancel(context.TODO())
 
 	By("bootstrap the test environment")