diff --git a/templates/cluster-template-flatcar-sysext.yaml b/templates/cluster-template-flatcar-sysext.yaml
index baa121ed384..f5fd56d3272 100644
--- a/templates/cluster-template-flatcar-sysext.yaml
+++ b/templates/cluster-template-flatcar-sysext.yaml
@@ -140,13 +140,11 @@ spec:
     initConfiguration:
       nodeRegistration:
         kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
           cloud-provider: external
         name: '@@HOSTNAME@@'
     joinConfiguration:
       nodeRegistration:
         kubeletExtraArgs:
-          azure-container-registry-config: /etc/kubernetes/azure.json
           cloud-provider: external
         name: '@@HOSTNAME@@'
     mounts: