diff --git a/pkg/apis/k0s/v1beta1/clusterconfig_types.go b/pkg/apis/k0s/v1beta1/clusterconfig_types.go
index d416358b8bd7..01e48ac03627 100644
--- a/pkg/apis/k0s/v1beta1/clusterconfig_types.go
+++ b/pkg/apis/k0s/v1beta1/clusterconfig_types.go
@@ -197,21 +197,24 @@ func (s *SchedulerSpec) IsZero() bool {
 	return len(s.ExtraArgs) == 0
 }
 
-func ConfigFromBytes(bytes []byte, defaultStorage ...*StorageSpec) (*ClusterConfig, error) {
-	config := DefaultClusterConfig(defaultStorage...)
-	err := strictyaml.YamlUnmarshalStrictIgnoringFields(bytes, config, "interval", "podSecurityPolicy")
+func ConfigFromBytes(bytes []byte) (*ClusterConfig, error) {
+	return DefaultClusterConfig().MergedWithYAML(bytes)
+}
+
+func (c *ClusterConfig) MergedWithYAML(bytes []byte) (*ClusterConfig, error) {
+	merged := c.DeepCopy()
+	err := strictyaml.YamlUnmarshalStrictIgnoringFields(bytes, merged, "interval", "podSecurityPolicy")
 	if err != nil {
-		return config, err
+		return nil, err
 	}
-	if config.Spec == nil {
-		config.Spec = DefaultClusterSpec(defaultStorage...)
+	if merged.Spec == nil {
+		merged.Spec = c.Spec
 	}
-	return config, nil
+	return merged, nil
 }
 
 // DefaultClusterConfig sets the default ClusterConfig values, when none are given
-func DefaultClusterConfig(defaultStorage ...*StorageSpec) *ClusterConfig {
-	clusterSpec := DefaultClusterSpec(defaultStorage...)
+func DefaultClusterConfig() *ClusterConfig {
 	return &ClusterConfig{
 		TypeMeta: metav1.TypeMeta{
 			APIVersion: GroupVersion.String(),
@@ -221,7 +224,7 @@ func DefaultClusterConfig(defaultStorage ...*StorageSpec) *ClusterConfig {
 			Name:      constant.ClusterConfigObjectName,
 			Namespace: constant.ClusterConfigNamespace,
 		},
-		Spec: clusterSpec,
+		Spec: DefaultClusterSpec(),
 	}
 }
 
@@ -237,7 +240,10 @@ func (c *ClusterConfig) UnmarshalJSON(data []byte) error {
 	if c.Spec != nil && c.Spec.Storage != nil {
 		storage = c.Spec.Storage
 	}
-	c.Spec = DefaultClusterSpec(storage)
+	c.Spec = DefaultClusterSpec()
+	if storage != nil {
+		c.Spec.Storage = storage
+	}
 
 	type config ClusterConfig
 	jc := (*config)(c)
@@ -251,7 +257,10 @@ func (c *ClusterConfig) UnmarshalJSON(data []byte) error {
 	}
 
 	if jc.Spec == nil {
-		jc.Spec = DefaultClusterSpec(storage)
+		jc.Spec = DefaultClusterSpec()
+		if storage != nil {
+			jc.Spec.Storage = storage
+		}
 		return nil
 	}
 	if jc.Spec.Storage == nil {
@@ -291,17 +300,10 @@ func (c *ClusterConfig) UnmarshalJSON(data []byte) error {
 }
 
 // DefaultClusterSpec default settings
-func DefaultClusterSpec(defaultStorage ...*StorageSpec) *ClusterSpec {
-	var storage *StorageSpec
-	if defaultStorage == nil || defaultStorage[0] == nil {
-		storage = DefaultStorageSpec()
-	} else {
-		storage = defaultStorage[0]
-	}
-
+func DefaultClusterSpec() *ClusterSpec {
 	spec := &ClusterSpec{
 		Extensions:        DefaultExtensions(),
-		Storage:           storage,
+		Storage:           DefaultStorageSpec(),
 		Network:           DefaultNetwork(),
 		API:               DefaultAPISpec(),
 		ControllerManager: DefaultControllerManagerSpec(),
diff --git a/pkg/component/controller/workerconfig/reconciler_test.go b/pkg/component/controller/workerconfig/reconciler_test.go
index e49b92b2bc23..d77be4bcb002 100644
--- a/pkg/component/controller/workerconfig/reconciler_test.go
+++ b/pkg/component/controller/workerconfig/reconciler_test.go
@@ -96,7 +96,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 		t.Run("reconcile_fails", func(t *testing.T) {
 			underTest := createdReconciler(t, nil)
 
-			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig(nil))
+			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig())
 
 			require.Error(t, err)
 			assert.Equal(t, "cannot reconcile, not started: created", err.Error())
@@ -140,7 +140,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 		t.Run("reconcile_fails", func(t *testing.T) {
 			underTest := initializedReconciler(t, nil)
 
-			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig(nil))
+			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig())
 
 			require.Error(t, err)
 			assert.Equal(t, "cannot reconcile, not started: initialized", err.Error())
@@ -196,7 +196,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 			underTest, mockApplier := startedReconciler(t)
 			applied := mockApplier.expectApply(t, nil)
 
-			assert.NoError(t, underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig(nil)))
+			assert.NoError(t, underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig()))
 
 			assert.NotEmpty(t, applied(), "Expected some resources to be applied")
 		})
@@ -214,7 +214,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 		t.Helper()
 		underTest, mockApplier := startedReconciler(t)
 		applied := mockApplier.expectApply(t, nil)
-		require.NoError(t, underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig(nil)))
+		require.NoError(t, underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig()))
 
 		_ = applied() // wait until reconciliation happened
 		return underTest, mockApplier
@@ -242,7 +242,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 		t.Run("another_reconcile_succeeds", func(t *testing.T) {
 			underTest, mockApplier := reconciledReconciler(t)
 			applied := mockApplier.expectApply(t, nil)
-			clusterConfig := v1beta1.DefaultClusterConfig(nil)
+			clusterConfig := v1beta1.DefaultClusterConfig()
 			clusterConfig.Spec.WorkerProfiles = v1beta1.WorkerProfiles{
 				{Name: "foo", Config: &runtime.RawExtension{Raw: []byte("{}")}},
 			}
@@ -291,7 +291,7 @@ func TestReconciler_Lifecycle(t *testing.T) {
 		t.Run("reconcile_fails", func(t *testing.T) {
 			underTest := stoppedReconciler(t)
 
-			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig(nil))
+			err := underTest.Reconcile(testContext(t), v1beta1.DefaultClusterConfig())
 
 			require.Error(t, err)
 			assert.Equal(t, "cannot reconcile, not started: stopped", err.Error())
@@ -480,7 +480,7 @@ func TestReconciler_ResourceGeneration(t *testing.T) {
 }
 
 func TestReconciler_ReconcilesOnChangesOnly(t *testing.T) {
-	cluster := v1beta1.DefaultClusterConfig(nil)
+	cluster := v1beta1.DefaultClusterConfig()
 	clients := testutil.NewFakeClientFactory()
 	k0sVars, err := config.NewCfgVars(nil, t.TempDir())
 	require.NoError(t, err)
@@ -630,7 +630,7 @@ func TestReconciler_runReconcileLoop(t *testing.T) {
 
 func TestReconciler_LeaderElection(t *testing.T) {
 	var le mockLeaderElector
-	cluster := v1beta1.DefaultClusterConfig(nil)
+	cluster := v1beta1.DefaultClusterConfig()
 	clients := testutil.NewFakeClientFactory()
 	k0sVars, err := config.NewCfgVars(nil, t.TempDir())
 	require.NoError(t, err)
diff --git a/pkg/config/cfgvars.go b/pkg/config/cfgvars.go
index 60e2229e93fa..ae347c4c0e0e 100644
--- a/pkg/config/cfgvars.go
+++ b/pkg/config/cfgvars.go
@@ -200,17 +200,6 @@ func NewCfgVars(cobraCmd command, dirs ...string) (*CfgVars, error) {
 	return vars, nil
 }
 
-func (c *CfgVars) defaultStorageSpec() *v1beta1.StorageSpec {
-	if c.DefaultStorageType == v1beta1.KineStorageType {
-		return &v1beta1.StorageSpec{
-			Type: v1beta1.KineStorageType,
-			Kine: v1beta1.DefaultKineConfig(c.DataDir),
-		}
-	}
-
-	return v1beta1.DefaultStorageSpec()
-}
-
 var defaultConfigPath = constant.K0sConfigPathDefault
 
 func (c *CfgVars) NodeConfig() (*v1beta1.ClusterConfig, error) {
@@ -218,7 +207,15 @@ func (c *CfgVars) NodeConfig() (*v1beta1.ClusterConfig, error) {
 		return nil, errors.New("config path is not set")
 	}
 
-	var nodeConfig *v1beta1.ClusterConfig
+	nodeConfig := v1beta1.DefaultClusterConfig()
+
+	// Optionally override the default storage (used for single node clusters)
+	if c.DefaultStorageType == v1beta1.KineStorageType {
+		nodeConfig.Spec.Storage = &v1beta1.StorageSpec{
+			Type: v1beta1.KineStorageType,
+			Kine: v1beta1.DefaultKineConfig(c.DataDir),
+		}
+	}
 
 	if c.StartupConfigPath == "-" {
 		configReader := c.stdin
@@ -232,23 +229,22 @@ func (c *CfgVars) NodeConfig() (*v1beta1.ClusterConfig, error) {
 			return nil, err
 		}
 
-		nodeConfig, err = v1beta1.ConfigFromBytes(bytes, c.defaultStorageSpec())
+		nodeConfig, err = nodeConfig.MergedWithYAML(bytes)
 		if err != nil {
 			return nil, err
 		}
 	} else {
 		cfgContent, err := os.ReadFile(c.StartupConfigPath)
-		if errors.Is(err, os.ErrNotExist) && c.StartupConfigPath == defaultConfigPath {
-			nodeConfig = v1beta1.DefaultClusterConfig(c.defaultStorageSpec())
-		} else if err == nil {
-			cfg, err := v1beta1.ConfigFromBytes(cfgContent, c.defaultStorageSpec())
-			if err != nil {
-				return nil, err
+		if err != nil {
+			if c.StartupConfigPath == defaultConfigPath && errors.Is(err, os.ErrNotExist) {
+				// The default configuration file doesn't exist; continue with the defaults.
+				return nodeConfig, nil
 			}
-			nodeConfig = cfg
-		} else {
+
 			return nil, err
 		}
+
+		return nodeConfig.MergedWithYAML(cfgContent)
 	}
 
 	if nodeConfig.Spec.Storage.Type == v1beta1.KineStorageType && nodeConfig.Spec.Storage.Kine == nil {