diff --git a/nexus/src/app/instance.rs b/nexus/src/app/instance.rs
index 645dc32d8d..977687d0bc 100644
--- a/nexus/src/app/instance.rs
+++ b/nexus/src/app/instance.rs
@@ -1133,7 +1133,7 @@ impl super::Nexus {
 
                         error!(
                             self.log,
-                            "failed to set instance to Failed after bad put";
+                            "attempted to set instance to Failed after bad put";
                             "instance_id" => %instance_id,
                             "result" => ?result,
                         );
diff --git a/nexus/src/app/sagas/instance_start.rs b/nexus/src/app/sagas/instance_start.rs
index 8b48b185b4..ac3b60146a 100644
--- a/nexus/src/app/sagas/instance_start.rs
+++ b/nexus/src/app/sagas/instance_start.rs
@@ -203,7 +203,8 @@ async fn sis_move_to_starting(
     let instance_id = params.db_instance.id();
     let propolis_id = sagactx.lookup::<Uuid>("propolis_id")?;
     info!(osagactx.log(), "moving instance to Starting state via saga";
-          "instance_id" => %instance_id);
+          "instance_id" => %instance_id,
+          "propolis_id" => %propolis_id);
 
     let opctx = crate::context::op_context_for_saga_action(
         &sagactx,
diff --git a/sled-agent/src/instance.rs b/sled-agent/src/instance.rs
index 3701e11fc0..2c542b3ac9 100644
--- a/sled-agent/src/instance.rs
+++ b/sled-agent/src/instance.rs
@@ -506,6 +506,10 @@ impl InstanceInner {
                 self.log,
                 "Instance::terminate() called with no running state"
             );
+
+            // Ensure the instance is removed from the instance manager's table
+            // so that a new instance can take its place.
+            self.instance_ticket.terminate();
             return Ok(());
         };