diff --git a/charts/kyverno/Chart.yaml b/charts/kyverno/Chart.yaml
index e25b6ee79010..60d2a6377a37 100644
--- a/charts/kyverno/Chart.yaml
+++ b/charts/kyverno/Chart.yaml
@@ -36,3 +36,9 @@ annotations:
       description: allow pod labels for cleanup jobs
     - kind: added
       description: allow nodeSelector for cleanup jobs
+    - kind: added
+      description: allow nodeSelector, tolerations and affinity settings for webhooksCleanup
+    - kind: added
+      description: allow affinity settings for cleanup jobs
+    - kind: added
+      description: Add helper to handle the labels for cleanup jobs, add component label
diff --git a/charts/kyverno/README.md b/charts/kyverno/README.md
index d35f3859a227..299639d7fc28 100644
--- a/charts/kyverno/README.md
+++ b/charts/kyverno/README.md
@@ -609,6 +609,11 @@ The chart values are organised per component.
 | webhooksCleanup.enabled | bool | `true` | Create a helm pre-delete hook to cleanup webhooks. |
 | webhooksCleanup.image | string | `"bitnami/kubectl:latest"` | `kubectl` image to run commands for deleting webhooks. |
 | webhooksCleanup.imagePullSecrets | list | `[]` | Image pull secrets |
+| webhooksCleanup.nodeSelector | object | `{}` | Node labels for pod assignment |
+| webhooksCleanup.tolerations | list | `[]` | List of node taints to tolerate |
+| webhooksCleanup.podAntiAffinity | object | `{}` | Pod anti affinity constraints. |
+| webhooksCleanup.podAffinity | object | `{}` | Pod affinity constraints. |
+| webhooksCleanup.nodeAffinity | object | `{}` | Node affinity constraints. |
 
 ### Test
 
@@ -648,6 +653,9 @@ The chart values are organised per component.
 | cleanupJobs.admissionReports.nodeSelector | object | `{}` | Node labels for pod assignment |
 | cleanupJobs.admissionReports.podAnnotations | object | `{}` | Pod Annotations |
 | cleanupJobs.admissionReports.podLabels | object | `{}` | Pod labels |
+| cleanupJobs.admissionReports.podAntiAffinity | object | `{}` | Pod anti affinity constraints. |
+| cleanupJobs.admissionReports.podAffinity | object | `{}` | Pod affinity constraints. |
+| cleanupJobs.admissionReports.nodeAffinity | object | `{}` | Node affinity constraints. |
 | cleanupJobs.clusterAdmissionReports.enabled | bool | `true` | Enable cleanup cronjob |
 | cleanupJobs.clusterAdmissionReports.image.registry | string | `nil` | Image registry |
 | cleanupJobs.clusterAdmissionReports.image.repository | string | `"bitnami/kubectl"` | Image repository |
@@ -664,6 +672,9 @@ The chart values are organised per component.
 | cleanupJobs.clusterAdmissionReports.nodeSelector | object | `{}` | Node labels for pod assignment |
 | cleanupJobs.clusterAdmissionReports.podAnnotations | object | `{}` | Pod Annotations |
 | cleanupJobs.clusterAdmissionReports.podLabels | object | `{}` | Pod Labels |
+| cleanupJobs.clusterAdmissionReports.podAntiAffinity | object | `{}` | Pod anti affinity constraints. |
+| cleanupJobs.clusterAdmissionReports.podAffinity | object | `{}` | Pod affinity constraints. |
+| cleanupJobs.clusterAdmissionReports.nodeAffinity | object | `{}` | Node affinity constraints. |
 
 ### Other
 
diff --git a/charts/kyverno/ci/cleanupJobs-values.yaml b/charts/kyverno/ci/cleanupJobs-values.yaml
index 61e7e170250e..93c04d945cde 100644
--- a/charts/kyverno/ci/cleanupJobs-values.yaml
+++ b/charts/kyverno/ci/cleanupJobs-values.yaml
@@ -2,6 +2,28 @@ cleanupJobs:
   admissionReports:
     nodeSelector:
       kubernetes.io/os: linux
+    podAntiAffinity:
+      preferredDuringSchedulingIgnoredDuringExecution:
+        - weight: 1
+          podAffinityTerm:
+            labelSelector:
+              matchExpressions:
+                - key: app.kubernetes.io/component
+                  operator: In
+                  values:
+                    - cleanup
+            topologyKey: kubernetes.io/hostname
   clusterAdmissionReports:
     nodeSelector:
       kubernetes.io/os: linux
+    podAntiAffinity:
+      preferredDuringSchedulingIgnoredDuringExecution:
+        - weight: 1
+          podAffinityTerm:
+            labelSelector:
+              matchExpressions:
+                - key: app.kubernetes.io/component
+                  operator: In
+                  values:
+                    - cleanup
+            topologyKey: kubernetes.io/hostname
diff --git a/charts/kyverno/ci/hooks-values.yaml b/charts/kyverno/ci/hooks-values.yaml
index 399110f1b046..d0d98ab277ac 100644
--- a/charts/kyverno/ci/hooks-values.yaml
+++ b/charts/kyverno/ci/hooks-values.yaml
@@ -1,3 +1,16 @@
 ---
 webhooksCleanup:
   enable: true
+  nodeSelector:
+    kubernetes.io/os: linux
+  podAntiAffinity:
+    preferredDuringSchedulingIgnoredDuringExecution:
+      - weight: 1
+        podAffinityTerm:
+          labelSelector:
+            matchExpressions:
+              - key: app.kubernetes.io/component
+                operator: In
+                values:
+                  - hooks
+          topologyKey: kubernetes.io/hostname
diff --git a/charts/kyverno/templates/cleanup/_helpers.tpl b/charts/kyverno/templates/cleanup/_helpers.tpl
new file mode 100644
index 000000000000..a1b70cb3392a
--- /dev/null
+++ b/charts/kyverno/templates/cleanup/_helpers.tpl
@@ -0,0 +1,9 @@
+{{/* vim: set filetype=mustache: */}}
+
+{{- define "kyverno.cleanup.labels" -}}
+{{- template "kyverno.labels.merge" (list
+  (include "kyverno.labels.common" .)
+  (include "kyverno.matchLabels.common" .)
+  (include "kyverno.labels.component" "cleanup")
+) -}}
+{{- end -}}
diff --git a/charts/kyverno/templates/cleanup/cleanup-admission-reports.yaml b/charts/kyverno/templates/cleanup/cleanup-admission-reports.yaml
index cbe4a56c7c78..1a39820b4d10 100644
--- a/charts/kyverno/templates/cleanup/cleanup-admission-reports.yaml
+++ b/charts/kyverno/templates/cleanup/cleanup-admission-reports.yaml
@@ -5,7 +5,7 @@ metadata:
   name: {{ template "kyverno.name" . }}-cleanup-admission-reports
   namespace: {{ template "kyverno.namespace" . }}
   labels:
-    {{- include "kyverno.labels.merge" (list (include "kyverno.labels.common" .) (include "kyverno.matchLabels.common" .)) | nindent 4 }}
+    {{- include "kyverno.cleanup.labels" . | nindent 4 }}
 spec:
   schedule: {{ .Values.cleanupJobs.admissionReports.schedule | quote }}
   concurrencyPolicy: Forbid
@@ -65,4 +65,19 @@ spec:
           nodeSelector:
             {{- tpl (toYaml .) $ | nindent 12 }}
           {{- end }}
+          {{- if or .Values.cleanupJobs.admissionReports.podAntiAffinity .Values.cleanupJobs.admissionReports.podAffinity .Values.cleanupJobs.admissionReports.nodeAffinity }}
+          affinity:
+            {{- with .Values.cleanupJobs.admissionReports.podAntiAffinity }}
+            podAntiAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+            {{- with .Values.cleanupJobs.admissionReports.podAffinity }}
+            podAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+            {{- with .Values.cleanupJobs.admissionReports.nodeAffinity }}
+            nodeAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+          {{- end }}
 {{- end -}}
diff --git a/charts/kyverno/templates/cleanup/cleanup-cluster-admission-reports.yaml b/charts/kyverno/templates/cleanup/cleanup-cluster-admission-reports.yaml
index 52c1ce7234c6..f67d8b0a7fbe 100644
--- a/charts/kyverno/templates/cleanup/cleanup-cluster-admission-reports.yaml
+++ b/charts/kyverno/templates/cleanup/cleanup-cluster-admission-reports.yaml
@@ -5,7 +5,7 @@ metadata:
   name: {{ template "kyverno.name" . }}-cleanup-cluster-admission-reports
   namespace: {{ template "kyverno.namespace" . }}
   labels:
-    {{- include "kyverno.labels.merge" (list (include "kyverno.labels.common" .) (include "kyverno.matchLabels.common" .)) | nindent 4 }}
+    {{- include "kyverno.cleanup.labels" . | nindent 4 }}
 spec:
   schedule: {{ .Values.cleanupJobs.clusterAdmissionReports.schedule | quote }}
   concurrencyPolicy: Forbid
@@ -65,4 +65,19 @@ spec:
           nodeSelector:
             {{- tpl (toYaml .) $ | nindent 12 }}
           {{- end }}
+          {{- if or .Values.cleanupJobs.clusterAdmissionReports.podAntiAffinity .Values.cleanupJobs.clusterAdmissionReports.podAffinity .Values.cleanupJobs.clusterAdmissionReports.nodeAffinity }}
+          affinity:
+            {{- with .Values.cleanupJobs.clusterAdmissionReports.podAntiAffinity }}
+            podAntiAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+            {{- with .Values.cleanupJobs.clusterAdmissionReports.podAffinity }}
+            podAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+            {{- with .Values.cleanupJobs.clusterAdmissionReports.nodeAffinity }}
+            nodeAffinity:
+              {{- tpl (toYaml .) $ | nindent 14 }}
+            {{- end }}
+          {{- end }}
 {{- end -}}
diff --git a/charts/kyverno/templates/hooks/pre-delete.yaml b/charts/kyverno/templates/hooks/pre-delete.yaml
index 522c867b6125..7479bc399ec5 100644
--- a/charts/kyverno/templates/hooks/pre-delete.yaml
+++ b/charts/kyverno/templates/hooks/pre-delete.yaml
@@ -31,5 +31,28 @@ spec:
               sleep 30
               kubectl delete validatingwebhookconfiguration -l webhook.kyverno.io/managed-by=kyverno
               kubectl delete mutatingwebhookconfiguration -l webhook.kyverno.io/managed-by=kyverno
+      {{- with .Values.webhooksCleanup.tolerations }}
+      tolerations:
+        {{- tpl (toYaml .) $ | nindent 8 }}
+      {{- end }}
+      {{- with .Values.webhooksCleanup.nodeSelector }}
+      nodeSelector:
+        {{- tpl (toYaml .) $ | nindent 8 }}
+      {{- end }}
+      {{- if or .Values.webhooksCleanup.podAntiAffinity .Values.webhooksCleanup.podAffinity .Values.webhooksCleanup.nodeAffinity }}
+      affinity:
+        {{- with .Values.webhooksCleanup.podAntiAffinity }}
+        podAntiAffinity:
+          {{- tpl (toYaml .) $ | nindent 10 }}
+        {{- end }}
+        {{- with .Values.webhooksCleanup.podAffinity }}
+        podAffinity:
+          {{- tpl (toYaml .) $ | nindent 10 }}
+        {{- end }}
+        {{- with .Values.webhooksCleanup.nodeAffinity }}
+        nodeAffinity:
+          {{- tpl (toYaml .) $ | nindent 10 }}
+        {{- end }}
+      {{- end }}
   {{- end -}}
 {{- end -}}
diff --git a/charts/kyverno/values.yaml b/charts/kyverno/values.yaml
index 4e084a1f70c1..1235554e2a77 100644
--- a/charts/kyverno/values.yaml
+++ b/charts/kyverno/values.yaml
@@ -308,6 +308,21 @@ webhooksCleanup:
   # -- Image pull secrets
   imagePullSecrets: []
 
+  # -- Node labels for pod assignment
+  nodeSelector: {}
+
+  # -- List of node taints to tolerate
+  tolerations: []
+
+  # -- Pod anti affinity constraints.
+  podAntiAffinity: {}
+
+  # -- Pod affinity constraints.
+  podAffinity: {}
+
+  # -- Node affinity constraints.
+  nodeAffinity: {}
+
 grafana:
   # -- Enable grafana dashboard creation.
   enabled: false
@@ -454,6 +469,15 @@ cleanupJobs:
     # -- Pod labels
     podLabels: {}
 
+    # -- Pod anti affinity constraints.
+    podAntiAffinity: {}
+
+    # -- Pod affinity constraints.
+    podAffinity: {}
+
+    # -- Node affinity constraints.
+    nodeAffinity: {}
+
   clusterAdmissionReports:
 
     # -- Enable cleanup cronjob
@@ -516,6 +540,15 @@ cleanupJobs:
     # -- Pod Labels
     podLabels: {}
 
+    # -- Pod anti affinity constraints.
+    podAntiAffinity: {}
+
+    # -- Pod affinity constraints.
+    podAffinity: {}
+
+    # -- Node affinity constraints.
+    nodeAffinity: {}
+
 # Admission controller configuration
 admissionController:
 
diff --git a/config/install-latest-testing.yaml b/config/install-latest-testing.yaml
index a414045fa33c..e8906f2f992f 100644
--- a/config/install-latest-testing.yaml
+++ b/config/install-latest-testing.yaml
@@ -35511,6 +35511,7 @@ metadata:
   name: kyverno-cleanup-admission-reports
   namespace: kyverno
   labels:
+    app.kubernetes.io/component: cleanup
     app.kubernetes.io/instance: kyverno
     app.kubernetes.io/part-of: kyverno
     app.kubernetes.io/version: latest
@@ -35558,6 +35559,7 @@ metadata:
   name: kyverno-cleanup-cluster-admission-reports
   namespace: kyverno
   labels:
+    app.kubernetes.io/component: cleanup
     app.kubernetes.io/instance: kyverno
     app.kubernetes.io/part-of: kyverno
     app.kubernetes.io/version: latest
diff --git a/pkg/openapi/manager.go b/pkg/openapi/manager.go
index 6b4bec185312..ffb22b3e0a2c 100644
--- a/pkg/openapi/manager.go
+++ b/pkg/openapi/manager.go
@@ -133,11 +133,20 @@ func (o *manager) ValidatePolicyMutation(policy kyvernov1.PolicyInterface) error
 	}
 
 	for kind, rules := range kindToRules {
+		if kind == "CustomResourceDefinition" {
+			continue
+		}
 		newPolicy := policy.CreateDeepCopy()
 		spec := newPolicy.GetSpec()
 		spec.SetRules(rules)
-		k, _ := o.gvkToDefinitionName.Get(kind)
-		d, _ := o.definitions.Get(k)
+		k, ok := o.gvkToDefinitionName.Get(kind)
+		if !ok {
+			continue
+		}
+		d, ok := o.definitions.Get(k)
+		if !ok {
+			continue
+		}
 		resource, _ := o.generateEmptyResource(d).(map[string]interface{})
 		if len(resource) == 0 {
 			o.logger.V(2).Info("unable to validate resource. OpenApi definition not found", "kind", kind)
diff --git a/pkg/validation/policy/validate.go b/pkg/validation/policy/validate.go
index ad8a335aea0c..e6ea81d92789 100644
--- a/pkg/validation/policy/validate.go
+++ b/pkg/validation/policy/validate.go
@@ -1252,6 +1252,9 @@ func validateNamespaces(s *kyvernov1.Spec, path *field.Path) error {
 	}
 
 	for i, vfa := range s.ValidationFailureActionOverrides {
+		if !vfa.Action.IsValid() {
+			return fmt.Errorf("invalid action")
+		}
 		patternList, nsList := wildcard.SeperateWildcards(vfa.Namespaces)
 
 		if vfa.Action.Audit() {
diff --git a/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/01-policy.yaml b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/01-policy.yaml
new file mode 100644
index 000000000000..82e282409a6f
--- /dev/null
+++ b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/01-policy.yaml
@@ -0,0 +1,42 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  annotations:
+    policies.kyverno.io/category: Security
+    policies.kyverno.io/description: 'This policy mutates any namespace-scoped Custom
+      Resource Definition created by the subjects in the xteam Azure AD group
+      and adds the label "createdByXteam: true".'
+    policies.kyverno.io/subject: RBAC
+    policies.kyverno.io/title: Mutate Namespace-Scoped CRDs for xteam aad
+      group
+    policy.reporter.kyverno.io/minimal: minimal
+  generation: 1
+  labels:
+    aws.cdk.eks/prune-c8b5941ff5f4fe911c5ee96472fda3d1f9866734a7: ""
+  name: mutate-xteam-namespace-scoped-crds
+spec:
+  background: false
+  rules:
+  - match:
+      all:
+      - resources:
+          kinds:
+          - CustomResourceDefinition
+      subjects:
+      - kind: Group
+        name: aad:9b9had99-6k66-2222-9999-8aadb888e888
+    mutate:
+      patchStrategicMerge:
+        metadata:
+          labels:
+            createdByXteam: "true"
+    name: mutate-xteams-crd-creation
+    preconditions:
+      all:
+      - key: '{{request.operation}}'
+        operator: Equals
+        value: CREATE
+      - key: '{{ request.object.spec.scope }}'
+        operator: Equals
+        value: Namespaced
+  validationFailureAction: audit
\ No newline at end of file
diff --git a/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/README.md b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/README.md
new file mode 100644
index 000000000000..23f9175f807e
--- /dev/null
+++ b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/README.md
@@ -0,0 +1,11 @@
+## Description
+
+This test ensures the schema validation is skipped for CustomResourceDefinition.
+
+## Expected Behavior
+
+The Pod creation should be allowed.
+
+## Reference Issue(s)
+
+https://github.com/kyverno/kyverno/issues/7844
diff --git a/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/policy-assert.yaml b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/policy-assert.yaml
new file mode 100644
index 000000000000..45ad7ff3a795
--- /dev/null
+++ b/test/conformance/kuttl/policy-validation/cluster-policy/schema-validation-crd/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: mutate-xteam-namespace-scoped-crds
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
\ No newline at end of file