diff --git a/.e2e/chainsaw-tests.yaml b/.e2e/chainsaw-tests.yaml
index 9889a87..c3897ed 100644
--- a/.e2e/chainsaw-tests.yaml
+++ b/.e2e/chainsaw-tests.yaml
@@ -22,3 +22,28 @@ spec:
                 - my-virtual-namespace
               matchLabels:
                 vcluster.loft.sh/label-vcluster-x-a172cedcae: example-app
+---
+apiVersion: chainsaw.kyverno.io/v1alpha1
+kind: Test
+metadata:
+  name: pm-with-ns-selector
+spec:
+  steps:
+  - try:
+    - assert:
+        resource:
+          apiVersion: monitoring.coreos.com/v1
+          kind: PodMonitor
+          metadata:
+            name: pm-with-ns-selector-x-default-x-vcluster
+            namespace: default
+          spec:
+            namespaceSelector: {}
+            selector:
+              matchExpressions:
+              - key: vcluster.loft.sh/namespace
+                operator: In
+                values:
+                - my-virtual-namespace
+              matchLabels:
+                vcluster.loft.sh/label-vcluster-x-a172cedcae: example-app
diff --git a/.e2e/vcluster-resources.yaml b/.e2e/vcluster-resources.yaml
index 8e61302..b46b344 100644
--- a/.e2e/vcluster-resources.yaml
+++ b/.e2e/vcluster-resources.yaml
@@ -15,3 +15,19 @@ spec:
       app: example-app
   endpoints:
   - port: web
+---
+apiVersion: monitoring.coreos.com/v1
+kind: PodMonitor
+metadata:
+  name: pm-with-ns-selector
+  namespace: default
+  labels:
+    team: frontend
+spec:
+  namespaceSelector:
+    any: false
+    matchNames:
+    - my-virtual-namespace
+  selector:
+    matchLabels:
+      app: example-app
diff --git a/v1/.e2e/scripts/init.sh b/v1/.e2e/scripts/init.sh
index 8d594c0..ad206de 100755
--- a/v1/.e2e/scripts/init.sh
+++ b/v1/.e2e/scripts/init.sh
@@ -20,7 +20,7 @@ while [ $res -ne 0 ] && [ $secondsWaited -lt $timeout ]; do
     echo "Waiting for CRDs to get created, sleep for 30 seconds..."
     sleep 30
     secondsWaited=$((secondsWaited + 30))
-    vcluster connect vcluster -n default -- kubectl get servicemonitorr && vcluster connect vcluster -n default -- kubectl get podmonitor
+    vcluster connect vcluster -n default -- kubectl get servicemonitor && vcluster connect vcluster -n default -- kubectl get podmonitor
     res=$?
 done
 
diff --git a/v2/.e2e/scripts/init.sh b/v2/.e2e/scripts/init.sh
new file mode 100755
index 0000000..76783c8
--- /dev/null
+++ b/v2/.e2e/scripts/init.sh
@@ -0,0 +1,32 @@
+#!/bin/bash
+# Deploy CRDs and vcluster with the plugin, connect to vcluster and apply resources in resources folder for testing
+
+PLUGIN_IMAGE=$1
+MYDIR=$(dirname $0)
+ROOT_DIR=$MYDIR/../../
+RESOURCES_FILE=$MYDIR/../../../.e2e/vcluster-resources.yaml
+
+kubectl apply -f https://raw.githubusercontent.com/prometheus-operator/prometheus-operator/v0.70.0/example/prometheus-operator-crd-full/monitoring.coreos.com_podmonitors.yaml
+kubectl apply -f https://raw.githubusercontent.com/prometheus-operator/prometheus-operator/v0.70.0/example/prometheus-operator-crd-full/monitoring.coreos.com_servicemonitors.yaml
+helm upgrade --install --repo https://charts.loft.sh vcluster vcluster --version v0.20.0-beta.5 --values $MYDIR/vcluster-values.yaml --values $ROOT_DIR/plugin.yaml --set plugins.prometheus-operator-resources.image=$PLUGIN_IMAGE --wait
+
+vcluster connect vcluster -n default -- kubectl get servicemonitor && vcluster connect vcluster -n default -- kubectl get podmonitor
+
+res=$?
+secondsWaited=0
+timeout=300
+
+while [ $res -ne 0 ] && [ $secondsWaited -lt $timeout ]; do
+    echo "Waiting for CRDs to get created, sleep for 30 seconds..."
+    sleep 30
+    secondsWaited=$((secondsWaited + 30))
+    vcluster connect vcluster -n default -- kubectl get servicemonitor && vcluster connect vcluster -n default -- kubectl get podmonitor
+    res=$?
+done
+
+if [ $res -ne 0 ]; then
+  echo "Timed out waiting for CRDs to get created in vcluster"
+  exit 1
+fi
+
+cat $RESOURCES_FILE | vcluster connect vcluster -n default -- kubectl -n default apply -f -
diff --git a/v2/.e2e/scripts/vcluster-values.yaml b/v2/.e2e/scripts/vcluster-values.yaml
new file mode 100644
index 0000000..f594a24
--- /dev/null
+++ b/v2/.e2e/scripts/vcluster-values.yaml
@@ -0,0 +1,17 @@
+controlPlane:
+  advanced:
+    serviceAccount:
+      enabled: false
+      name: default
+  statefulSet:
+    probes:
+      livenessProbe:
+        enabled: false
+      readinessProbe:
+        enabled: false
+  distro:
+    k3s:
+      enabled: true
+rbac:
+  clusterRole:
+    enabled: true
diff --git a/v2/devspace.yaml b/v2/devspace.yaml
index 477feb6..2918c91 100644
--- a/v2/devspace.yaml
+++ b/v2/devspace.yaml
@@ -25,10 +25,6 @@ deployments:
         repo: https://charts.loft.sh
         version: v0.20.0-beta.5
       values:
-        experimental:
-          syncSettings:
-            syncLabels:
-            - app
         controlPlane:
           advanced:
             serviceAccount: