diff --git a/azure/defaults.go b/azure/defaults.go
index 37b2af97ed5..f1c8d828a0e 100644
--- a/azure/defaults.go
+++ b/azure/defaults.go
@@ -296,7 +296,7 @@ func GetBootstrappingVMExtension(osType string, cloud string, vmName string) *Ex
 			Name:      BootstrappingExtensionLinux,
 			VMName:    vmName,
 			Publisher: "Microsoft.Azure.ContainerUpstream",
-			Version:   "1.0",
+			Version:   "1.1",
 			ProtectedSettings: map[string]string{
 				"commandToExecute": LinuxBootstrapExtensionCommand,
 			},
diff --git a/azure/scope/machine_test.go b/azure/scope/machine_test.go
index c21f4ce67bd..b449dea6a6b 100644
--- a/azure/scope/machine_test.go
+++ b/azure/scope/machine_test.go
@@ -580,7 +580,7 @@ func TestMachineScope_VMExtensionSpecs(t *testing.T) {
 						Name:      "CAPZ.Linux.Bootstrapping",
 						VMName:    "machine-name",
 						Publisher: "Microsoft.Azure.ContainerUpstream",
-						Version:   "1.0",
+						Version:   "1.1",
 						ProtectedSettings: map[string]string{
 							"commandToExecute": azure.LinuxBootstrapExtensionCommand,
 						},
@@ -841,7 +841,7 @@ func TestMachineScope_VMExtensionSpecs(t *testing.T) {
 						Name:      "CAPZ.Linux.Bootstrapping",
 						VMName:    "machine-name",
 						Publisher: "Microsoft.Azure.ContainerUpstream",
-						Version:   "1.0",
+						Version:   "1.1",
 						ProtectedSettings: map[string]string{
 							"commandToExecute": azure.LinuxBootstrapExtensionCommand,
 						},
diff --git a/azure/scope/machinepool_test.go b/azure/scope/machinepool_test.go
index cfda40bdb72..9e968a3a4bf 100644
--- a/azure/scope/machinepool_test.go
+++ b/azure/scope/machinepool_test.go
@@ -893,7 +893,7 @@ func TestMachinePoolScope_VMSSExtensionSpecs(t *testing.T) {
 						Name:      "CAPZ.Linux.Bootstrapping",
 						VMName:    "machinepool-name",
 						Publisher: "Microsoft.Azure.ContainerUpstream",
-						Version:   "1.0",
+						Version:   "1.1",
 						ProtectedSettings: map[string]string{
 							"commandToExecute": azure.LinuxBootstrapExtensionCommand,
 						},
@@ -1150,7 +1150,7 @@ func TestMachinePoolScope_VMSSExtensionSpecs(t *testing.T) {
 						Name:      "CAPZ.Linux.Bootstrapping",
 						VMName:    "machinepool-name",
 						Publisher: "Microsoft.Azure.ContainerUpstream",
-						Version:   "1.0",
+						Version:   "1.1",
 						ProtectedSettings: map[string]string{
 							"commandToExecute": azure.LinuxBootstrapExtensionCommand,
 						},