Originally posted on Github: https://github.com/k-orc/openstack-resource-controller/issues/559

Problem description
Saw this in my logs earlier:
2025-11-07T11:31:25+01:00 ERROR Reconciler error {"controller": "server", "controllerGroup": "openstack.k-orc.cloud", "controllerKind": "Server", "Server":

, "namespace": "kuttl-test-enough-hermit", "name": "server-create-full", "reconcileID": "033238bb-617
a-4195-a712-bb3ffe5854e0", "error": "Expected HTTP response code [200] when accessing [PUT http://192.168.200.158/compute/v2.1/servers/17b7ebfb-655a-4b62-9241-1e3bd2163c4
e/tags], but got 409 instead: {\"conflictingRequest\": {\"code\": 409, \"message\": \"Cannot 'update tags' instance 17b7ebfb-655a-4b62-9241-1e3bd2163c4e while it is in vm
_state building\"}}\nExpected HTTP response code [200] when accessing [PUT http://192.168.200.158/compute/v2.1/servers/17b7ebfb-655a-4b62-9241-1e3bd2163c4e/tags], but got
409 instead: {\"conflictingRequest\": {\"code\": 409, \"message\": \"Cannot 'update tags' instance 17b7ebfb-655a-4b62-9241-1e3bd2163c4e while it is in vm_state building\
"}}"}
sigs.k8s.io/controller-runtime/pkg/internal/controller.(*Controller[...]).reconcileHandler
/home/martin/go/pkg/mod/sigs.k8s.io/controller-runtime@v0.20.4/pkg/internal/controller/controller.go:347
sigs.k8s.io/controller-runtime/pkg/internal/controller.(*Controller[...]).processNextWorkItem
/home/martin/go/pkg/mod/sigs.k8s.io/controller-runtime@v0.20.4/pkg/internal/controller/controller.go:294
sigs.k8s.io/controller-runtime/pkg/internal/controller.(*Controller[...]).Start.func2.2
/home/martin/go/pkg/mod/sigs.k8s.io/controller-runtime@v0.20.4/pkg/internal/controller/controller.go:255

We should make sure the server is not in BUILD status before trying to reconcile the tags, as this would result in an API call that cannot succeed.
ORC version
main
Additional information
No response
Relevant log output