Use a custom subscription healthcheck

internal/controller/argo.go

@@ -148,7 +148,6 @@ g, admin, role:admin`
 					},
 				},
 			},
-
 			Controller: argooperator.ArgoCDApplicationControllerSpec{
 				Resources: &v1.ResourceRequirements{
 					Limits: v1.ResourceList{
@@ -247,6 +246,94 @@ g, admin, role:admin`
   kinds:
   - TaskRun
   - PipelineRun`,
+			// We can drop this custom Subscription healthcheck once https://www.github.com/argoproj/argo-cd/issues/25921 is fixed
+			ResourceHealthChecks: []argooperator.ResourceHealthCheck{
+				{
+					Group: "operators.coreos.com",
+					Kind:  "Subscription",
+					Check: `local health_status = {}
+if obj.status ~= nil then
+  if obj.status.conditions ~= nil then
+    local numDegraded = 0
+    local numPending = 0
+    local msg = ""
+
+    -- Check if this is a manual approval scenario where InstallPlanPending is expected
+    -- and the operator is already installed (upgrade pending, not initial install)
+    local isManualApprovalPending = false
+    if obj.spec ~= nil and obj.spec.installPlanApproval == "Manual" then
+      for _, condition in pairs(obj.status.conditions) do
+        if condition.type == "InstallPlanPending" and condition.status == "True" and condition.reason == "RequiresApproval" then
+          -- Only treat as expected healthy state if the operator is already installed
+          -- (installedCSV is present), meaning this is an upgrade pending approval
+          if obj.status.installedCSV ~= nil then
+            isManualApprovalPending = true
+          end
+          break
+        end
+      end
+    end
+
+    for i, condition in pairs(obj.status.conditions) do
+      -- Skip InstallPlanPending condition when manual approval is pending (expected behavior)
+      if isManualApprovalPending and condition.type == "InstallPlanPending" then
+        -- Do not include in message or count as pending
+      else
+        msg = msg .. i .. ": " .. condition.type .. " | " .. condition.status .. "\n"
+        if condition.type == "InstallPlanPending" and condition.status == "True" then
+          numPending = numPending + 1
+        elseif (condition.type == "InstallPlanMissing" and condition.reason ~= "ReferencedInstallPlanNotFound") then
+          numDegraded = numDegraded + 1
+        elseif (condition.type == "CatalogSourcesUnhealthy" or condition.type == "InstallPlanFailed" or condition.type == "ResolutionFailed") and condition.status == "True" then
+          numDegraded = numDegraded + 1
+        end
+      end
+    end
+
+    -- Available states: undef/nil, UpgradeAvailable, UpgradePending, UpgradeFailed, AtLatestKnown
+    -- Source: https://github.com/openshift/operator-framework-olm/blob/5e2c73b7663d0122c9dc3e59ea39e515a31e2719/staging/api/pkg/operators/v1alpha1/subscription_types.go#L17-L23
+    if obj.status.state == nil  then
+      numPending = numPending + 1
+      msg = msg .. ".status.state not yet known\n"
+    elseif obj.status.state == "" or obj.status.state == "UpgradeAvailable" then
+      numPending = numPending + 1
+      msg = msg .. ".status.state is '" .. obj.status.state .. "'\n"
+    elseif obj.status.state == "UpgradePending" then
+      -- UpgradePending with manual approval is expected behavior, treat as healthy
+      if isManualApprovalPending then
+        msg = msg .. ".status.state is 'AtLatestKnown'\n"
+      else
+        numPending = numPending + 1
+        msg = msg .. ".status.state is '" .. obj.status.state .. "'\n"
+      end
+    elseif obj.status.state == "UpgradeFailed" then
+      numDegraded = numDegraded + 1
+      msg = msg .. ".status.state is '" .. obj.status.state .. "'\n"
+    else
+      -- Last possiblity of .status.state: AtLatestKnown
+      msg =  msg .. ".status.state is '" .. obj.status.state .. "'\n"
+    end
+
+    if numDegraded == 0 and numPending == 0 then
+      health_status.status = "Healthy"
+      health_status.message = msg
+      return health_status
+    elseif numPending > 0 and numDegraded == 0 then
+      health_status.status = "Progressing"
+      health_status.message = msg
+      return health_status
+    else
+      health_status.status = "Degraded"
+      health_status.message = msg
+      return health_status
+    end
+  end
+end
+health_status.status = "Progressing"
+health_status.message = "An install plan for a subscription is pending installation"
+return health_status`,
+				},
+			},
 			Server: argooperator.ArgoCDServerSpec{
 				Autoscale: argooperator.ArgoCDServerAutoscaleSpec{
 					Enabled: false,