Description of problem:

In the ACM pull model setup, after an Argo CD ApplicationSet completes its progressive sync/rollout to the Application resources it manages, the ApplicationSet status may incorrectly indicate that some Applications are still in a pending state.

This issue occurs because in the pull model, the ACM controllers are responsible for updating the status of Application resources based on feedback from ManifestWork. Depending on the timing of this feedback, an Application’s status may "jump" directly from OutOfSync to Synced, skipping intermediate states like Progressing.

Since the ApplicationSet controller watches for specific state transitions (ie: OutOfSync => Progressing => Synced), it may not detect that the Application has reached the Synced state if the Progressing state is skipped. As a result, it assumes the Application is still pending.

  status:
    applicationStatus:
    - application: cluster1-guestbook-app
      lastTransitionTime: "2025-04-15T15:52:08Z"
      message: Application moved to Pending status, watching for the Application resource
        to start Progressing.
      status: Pending
      step: "1"
      targetRevisions: []

Version-Release number of selected component (if applicable):

How reproducible:

Steps to Reproduce:

1. Perform ApplicationSet progressive sync/rollout in pull model
2. After sync, check AppSet status
3. ...

Actual results:

AppSet showing Pending Application status

Expected results:

AppSet showing Sync Application status

Additional info: