diff --git a/pkg/controller/queuejob/queuejob_controller_ex.go b/pkg/controller/queuejob/queuejob_controller_ex.go
index 009192998..a064141cc 100644
--- a/pkg/controller/queuejob/queuejob_controller_ex.go
+++ b/pkg/controller/queuejob/queuejob_controller_ex.go
@@ -1029,6 +1029,8 @@ func (qjm *XController) chooseAgent(qj *arbv1.AppWrapper) string {
 		//Now evaluate quota
 		if qjm.serverOption.QuotaEnabled {
 			if qjm.quotaManager != nil {
+				//quota trees faile to update with AW deletes, release quota before assigning
+				qjm.quotaManager.Release(qj)
 				if fits, preemptAWs, _ := qjm.quotaManager.Fits(qj, qjAggrResources, proposedPreemptions); fits {
 					klog.V(2).Infof("[chooseAgent] AppWrapper %s has enough quota.\n", qj.Name)
 					qjm.preemptAWJobs(preemptAWs)
@@ -1267,7 +1269,9 @@ func (qjm *XController) ScheduleNext() {
 					if qjm.quotaManager != nil {
 						var msg string
 						var preemptAWs []*arbv1.AppWrapper
-						quotaFits, preemptAWs, msg = qjm.quotaManager.Fits(qj, aggqj, proposedPreemptions)
+						//quota trees fail to update with AW deletes, release quota before assigning
+						qjm.quotaManager.Release(qj)
+						quotaFits, preemptAWs, msg := qjm.quotaManager.Fits(qj, aggqj, proposedPreemptions)
 						if quotaFits {
 							klog.Infof("[ScheduleNext] HOL quota evaluation successful %s for %s activeQ=%t Unsched=%t &qj=%p Version=%s Status=%+v due to quota limits", qj.Name, time.Now().Sub(HOLStartTime), qjm.qjqueue.IfExistActiveQ(qj), qjm.qjqueue.IfExistUnschedulableQ(qj), qj, qj.ResourceVersion, qj.Status)
 							// Set any jobs that are marked for preemption
diff --git a/pkg/quotaplugins/quota-forest/quota-manager/quota/quotamanager.go b/pkg/quotaplugins/quota-forest/quota-manager/quota/quotamanager.go
index a5f5ee8b4..36b1dceb2 100644
--- a/pkg/quotaplugins/quota-forest/quota-manager/quota/quotamanager.go
+++ b/pkg/quotaplugins/quota-forest/quota-manager/quota/quotamanager.go
@@ -433,9 +433,11 @@ func (m *Manager) AllocateForest(forestName string, consumerID string) (response
 	if consumerInfo == nil {
 		return nil, fmt.Errorf("consumer %s does not exist, create and add first", consumerID)
 	}
+
 	if forestController.IsConsumerAllocated(consumerID) {
 		return nil, fmt.Errorf("consumer %s already allocated on forest %s", consumerID, forestName)
 	}
+
 	resourceNames := forestController.GetResourceNames()
 	forestConsumer, err := consumerInfo.CreateForestConsumer(forestName, resourceNames)
 	if err != nil {
diff --git a/test/e2e-kuttl/install-quota-subtree.yaml b/test/e2e-kuttl/install-quota-subtree.yaml
index 8580ab2ca..1299cf4ba 100644
--- a/test/e2e-kuttl/install-quota-subtree.yaml
+++ b/test/e2e-kuttl/install-quota-subtree.yaml
@@ -40,6 +40,7 @@ spec:
   children:
     - name: gold
       quotas:
+        hardLimit: false
         requests:
           cpu: 1075m
           memory: 450Mi
diff --git a/test/e2e-kuttl/quota-forest/06-install.yaml b/test/e2e-kuttl/quota-forest/06-install.yaml
index 985cc197b..fb7ba84ac 100644
--- a/test/e2e-kuttl/quota-forest/06-install.yaml
+++ b/test/e2e-kuttl/quota-forest/06-install.yaml
@@ -9,7 +9,7 @@ metadata:
 spec:
   service:
     spec: {}
-  priority: 1000
+  priority: 10000
   resources:
     metadata: {}
     GenericItems: