diff --git a/go.mod b/go.mod
index d5a66fac02..9b2595cd5f 100644
--- a/go.mod
+++ b/go.mod
@@ -10,7 +10,7 @@ require (
 	github.com/openshift/api v0.0.0-20260304172252-b0658d22beea
 	github.com/openshift/build-machinery-go v0.0.0-20250530140348-dc5b2804eeee
 	github.com/openshift/client-go v0.0.0-20251205093018-96a6cbc1420c
-	github.com/openshift/library-go v0.0.0-20260304201346-4aa68c020bf7
+	github.com/openshift/library-go v0.0.0-20260306144728-e1d99440aba6
 	github.com/openshift/multi-operator-manager v0.0.0-20241205181422-20aa3906b99d
 	github.com/spf13/cobra v1.9.1
 	github.com/spf13/pflag v1.0.6
diff --git a/go.sum b/go.sum
index cd7220a006..53b6a93ae7 100644
--- a/go.sum
+++ b/go.sum
@@ -153,8 +153,8 @@ github.com/openshift/build-machinery-go v0.0.0-20250530140348-dc5b2804eeee h1:+S
 github.com/openshift/build-machinery-go v0.0.0-20250530140348-dc5b2804eeee/go.mod h1:8jcm8UPtg2mCAsxfqKil1xrmRMI3a+XU2TZ9fF8A7TE=
 github.com/openshift/client-go v0.0.0-20251205093018-96a6cbc1420c h1:TBE0Gl+oCo/SNEhLKZQNNH/SWHXrpGyhAw7P0lAqdHg=
 github.com/openshift/client-go v0.0.0-20251205093018-96a6cbc1420c/go.mod h1:IsynOWZAfdH+BgWimcFQRtI41Id9sgdhsCEjIk8ACLw=
-github.com/openshift/library-go v0.0.0-20260304201346-4aa68c020bf7 h1:/FvNhsY6tN+AuYtRa5acZEXQwYRYi0MUJbVVzZADLaA=
-github.com/openshift/library-go v0.0.0-20260304201346-4aa68c020bf7/go.mod h1:rYGQrSg+t1JEzeEwg6BJw3loPpXg/n3kgRygUpgxavY=
+github.com/openshift/library-go v0.0.0-20260306144728-e1d99440aba6 h1:SsXtB95ZuyDKpO2zkXsFJenrDytSqSM342PZ33wEJa0=
+github.com/openshift/library-go v0.0.0-20260306144728-e1d99440aba6/go.mod h1:rYGQrSg+t1JEzeEwg6BJw3loPpXg/n3kgRygUpgxavY=
 github.com/openshift/multi-operator-manager v0.0.0-20241205181422-20aa3906b99d h1:Rzx23P63JFNNz5D23ubhC0FCN5rK8CeJhKcq5QKcdyU=
 github.com/openshift/multi-operator-manager v0.0.0-20241205181422-20aa3906b99d/go.mod h1:iVi9Bopa5cLhjG5ie9DoZVVqkH8BGb1FQVTtecOLn4I=
 github.com/orisano/pixelmatch v0.0.0-20220722002657-fb0b55479cde/go.mod h1:nZgzbfBr3hhjoZnS66nKrHmduYNpc34ny7RK4z5/HM0=
diff --git a/vendor/github.com/openshift/library-go/test/library/encryption/assertion.go b/vendor/github.com/openshift/library-go/test/library/encryption/assertion.go
index f4493e2df1..02261356ba 100644
--- a/vendor/github.com/openshift/library-go/test/library/encryption/assertion.go
+++ b/vendor/github.com/openshift/library-go/test/library/encryption/assertion.go
@@ -34,6 +34,7 @@ const (
 	aesCBCTransformerPrefixV1    = "k8s:enc:aescbc:v1:"
 	aesGCMTransformerPrefixV1    = "k8s:enc:aesgcm:v1:"
 	secretboxTransformerPrefixV1 = "k8s:enc:secretbox:v1:"
+	kmsTransformerPrefixV2       = "k8s:enc:kms:v2:"
 )
 
 func init() {
@@ -163,6 +164,8 @@ func encryptionModeFromEtcdValue(data []byte) (string, bool) {
 			return "aesgcm"
 		case hasPrefixAndTrailingData(data, []byte(secretboxTransformerPrefixV1)): // Secretbox has this prefix
 			return "secretbox"
+		case hasPrefixAndTrailingData(data, []byte(kmsTransformerPrefixV2)): // KMS v2 has this prefix
+			return "KMS"
 		case hasPrefixAndTrailingData(data, []byte(jsonEncodingPrefix)): // unencrypted json data has this prefix
 			return "identity-json"
 		case hasPrefixAndTrailingData(data, protoEncodingPrefix): // unencrypted protobuf data has this prefix
diff --git a/vendor/modules.txt b/vendor/modules.txt
index 013967187d..4cc1e6b832 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -319,7 +319,7 @@ github.com/openshift/client-go/user/applyconfigurations/internal
 github.com/openshift/client-go/user/applyconfigurations/user/v1
 github.com/openshift/client-go/user/clientset/versioned/scheme
 github.com/openshift/client-go/user/clientset/versioned/typed/user/v1
-# github.com/openshift/library-go v0.0.0-20260304201346-4aa68c020bf7
+# github.com/openshift/library-go v0.0.0-20260306144728-e1d99440aba6
 ## explicit; go 1.24.0
 github.com/openshift/library-go/pkg/apiserver/jsonpatch
 github.com/openshift/library-go/pkg/apps/deployment