diff --git a/argocd/apps/kyverno.yaml b/argocd/apps/kyverno.yaml
index 9f95c04..47dc365 100644
--- a/argocd/apps/kyverno.yaml
+++ b/argocd/apps/kyverno.yaml
@@ -20,4 +20,6 @@ spec:
       selfHeal: true
     syncOptions:
       - CreateNamespace=true
-
+      # Kyverno policy CRDs are large enough to exceed client-side apply's
+      # annotation limit on a local k3d cluster.
+      - ServerSideApply=true