Kueue will manage deployments that are labeled with Kueue. But if you try to submit a deployment with no kueue name, I expect admission will work without any issue.
In this case, replica sets fails to create the pods.

status:
  conditions:
  - lastTransitionTime: "2025-06-23T15:32:43Z"
    message: 'Internal error occurred: failed calling webhook "mpod.kb.io": failed
      to call webhook: Post "https://kueue-webhook-service.openshift-kueue-operator.svc:443/mutate--v1-pod?timeout=10s":
      context deadline exceeded'

    Kueue 0.2.0

    Everytime

Create a labelled namespace:

apiVersion: v1
kind: Namespace
metadata:
  labels:
    kubernetes.io/metadata.name: kueue-test
    kueue.openshift.io/managed: "true"
    kueue.io/managed: "true"
  name: kueue-test

Submit a deployment that does not use kueue into this namespace:

apiVersion: apps/v1
kind: Deployment
metadata:
  namespace: kueue-test
  name: deployment-no-kueue
spec:
  selector:
    matchLabels:
      app: name
  replicas: 3
  template:
    metadata:
      labels:
        app: name
    spec:
      containers:
        - name: container
          image: busybox
          command: ["/bin/sh", "-c"]  #  Define the command to execute
          args: ["sleep 100000"]
          ports:
            - containerPort: 8080
              protocol: TCP
          env: []
      imagePullSecrets: []
  strategy:
    type: RollingUpdate
    rollingUpdate:
      maxSurge: 25%
      maxUnavailable: 25%
  paused: false


Deployment replica set does not create pods.

If you describe the replicaset that the deployment creates you can see it fails due to some webhook failure.

Conditions:
  Type             Status  Reason
  ----             ------  ------
  ReplicaFailure   True    FailedCreate
Events:
  Type     Reason        Age                 From                   Message
  ----     ------        ----                ----                   -------
  Warning  FailedCreate  41s (x20 over 19m)  replicaset-controller  Error creating: Internal error occurred: failed calling webhook "mpod.kb.io": failed to call webhook: Post "https://kueue-webhook-service.openshift-kueue-operator.svc:443/mutate--v1-pod?timeout=10s": context deadline exceeded