diff --git a/.gitlab/tests/cram/generic/lcm/038-lcm-pcm.t b/.gitlab/tests/cram/generic/lcm/038-lcm-pcm.t
new file mode 100644
index 0000000000..4dd8d8ae73
--- /dev/null
+++ b/.gitlab/tests/cram/generic/lcm/038-lcm-pcm.t
@@ -0,0 +1,175 @@
+## Setup test configuration
+Setup the test configuration:
+
+  $ alias R="${CRAM_REMOTE_COMMAND:-}"
+  $ alias C="${CRAM_REMOTE_COPY:-}"
+  $ S=". /tmp/script_functions.sh"
+  $ C ${TESTDIR}/script_functions.sh root@${TARGET_LAN_IP}:/tmp/script_functions.sh 2>/dev/null
+  $ R "${S} && setup_hostobjects"
+
+Restart the LCM Agent so we start fresh with resetted indexes for ease of comparing the data models:
+  $ R "service rlyeh stop"
+  $ R "service cthulhu stop"
+  $ R "service timingila stop"
+  $ sleep 3
+  $ R "service rlyeh start"
+  $ R "service cthulhu start"
+  $ R "service timingila start"
+  $ sleep 10
+
+Create a user role with capabilities:
+  $ R "${S} && add_user_role --rolename full_caps --capabilities \"CAP_AUDIT_CONTROL,CAP_AUDIT_READ,CAP_AUDIT_WRITE,CAP_BLOCK_SUSPEND,CAP_BPF,CAP_CHECKPOINT_RESTORE,CAP_CHOWN,CAP_DAC_OVERRIDE,CAP_DAC_READ_SEARCH,CAP_FOWNER,CAP_FSETID,CAP_IPC_LOCK,CAP_IPC_OWNER,CAP_KILL,CAP_LEASE,CAP_LINUX_IMMUTABLE,CAP_MAC_ADMIN,CAP_MAC_OVERRIDE,CAP_MKNOD,CAP_NET_ADMIN,CAP_NET_BIND_SERVICE,CAP_NET_BROADCAST,CAP_NET_RAW,CAP_PERFMON,CAP_SETFCAP,CAP_SETGID,CAP_SETPCAP,CAP_SETUID,CAP_SYS_ADMIN,CAP_SYS_BOOT,CAP_SYS_CHROOT,CAP_SYS_MODULE,CAP_SYS_NICE,CAP_SYS_PACCT,CAP_SYS_PTRACE,CAP_SYS_RAWIO,CAP_SYS_RESOURCE,CAP_SYS_TIME,CAP_SYS_TTY_CONFIG,CAP_SYSLOG,CAP_WAKE_ALARM\"" > /dev/null
+  $ R "${S} && set_ee_roles --roles \"Full Access\" --userroles \"full_caps\"" > /dev/null
+  $ R "${S} && check_available_roles --ee"
+  Device.LocalAgent.ControllerTrust.Role.1.
+  $ R "${S} && check_available_user_roles"
+  Device.Users.Role.[RoleName=="full_caps"]
+
+Install the container in privileged mode with extra LCM features and check its status and type:
+
+  $ R "${S} && install_ctr --version prplos-v1 --ee --uuid --privileged true --network --hostobject --envvar --appdata --usprequired \"Full Access\" --userroles full_caps" > /dev/null
+  $ R "${S} && get_container_info --uuid"
+  Active
+  prplos-v1
+  prpl-foundation/prplos/prplos/prplos/lcm-test-* (glob)
+  $ R "${S} && get_ctr_type --uuid"
+  Privileged container
+  $ R "${S} && execute_in_container --uuid --cmd 'cat /etc/container-version'"
+  1
+
+Perform the backup process:
+
+  $ R "ba-cli 'PersistentConfiguration.Backup()'" > /dev/null
+  $ R "ls /cfg/pcm/cthulhu_Cthulhu.json"
+  /cfg/pcm/cthulhu_Cthulhu.json
+
+Save the data model before simulated firmware upgrade:
+
+  $ R "ba-cli 'Cthulhu.?'" > ${TESTDIR}/cthulhu_before.dm
+  $ R "ba-cli 'SoftwareModules.?'" > ${TESTDIR}/timingila_before.dm
+  $ R "ba-cli 'Rlyeh.?'" > ${TESTDIR}/rlyeh_before.dm
+
+Simulate firmware upgrade with manual configuration removal:
+
+  $ R "${S} && fake_fw_upgrade"
+  $ sleep 30
+
+Save the data model after simulated firmware upgrade:
+
+  $ R "ba-cli 'Cthulhu.?'" > ${TESTDIR}/cthulhu_after.dm
+  $ R "ba-cli 'SoftwareModules.?'" > ${TESTDIR}/timingila_after.dm
+  $ R "ba-cli 'Rlyeh.?'" > ${TESTDIR}/rlyeh_after.dm
+
+Compare the data models before and after the firmware upgrade:
+
+  $ diff ${TESTDIR}/rlyeh_before.dm ${TESTDIR}/rlyeh_after.dm
+  $ sed -i -e "s/\(Sandbox\.Instances\)\.2/\1\.1/g" ${TESTDIR}/cthulhu_after.dm
+  $ sed -i -e "s/\(Sandbox\.Instances\)\.3/\1\.2/g" ${TESTDIR}/cthulhu_after.dm
+  $ cat > ${TESTDIR}/runtime_params << EOF
+  > Cthulhu.Container.Instances.1.Pid
+  > Cthulhu.Container.Instances.1.StartTime
+  > Cthulhu.Container.Instances.1.AutoRestart.RunningSince
+  > Cthulhu.Container.Instances.1.Interfaces.6.Addresses.1.Address
+  > Cthulhu.Container.Instances.1.PluginsPrivate.NetworkConfig.FirewallRules.1.Path
+  > Cthulhu.Container.Instances.1.PluginsPrivate.NetworkConfig.FirewallRules.2.Path
+  > Cthulhu.Container.Instances.1.Resources.Stats.DiskSpace.Free
+  > Cthulhu.Container.Instances.1.Resources.Stats.DiskSpace.Used
+  > Cthulhu.Container.Instances.1.Resources.Stats.Memory.Used
+  > Cthulhu.Sandbox.Instances.1.Pid
+  > Cthulhu.Sandbox.Instances.1.Stats.DiskSpace.Free
+  > Cthulhu.Sandbox.Instances.1.Stats.DiskSpace.Used
+  > Cthulhu.Sandbox.Instances.1.Stats.Memory.Used
+  > Cthulhu.Sandbox.Instances.2.Created
+  > Cthulhu.Sandbox.Instances.2.Pid
+  > Cthulhu.Sandbox.Instances.2.Stats.DiskSpace.Free
+  > Cthulhu.Sandbox.Instances.2.Stats.DiskSpace.Used
+  > Cthulhu.Sandbox.Instances.2.Stats.Memory.Used
+  > SoftwareModules.ExecEnv.1.AvailableDiskSpace
+  > SoftwareModules.ExecutionUnit.1.AvailableDiskSpace
+  > SoftwareModules.ExecutionUnit.1.DiskSpaceInUse
+  > SoftwareModules.ExecutionUnit.1.MemoryInUse
+  > SoftwareModules.ExecutionUnit.1.Uptime
+  > EOF
+  $ cthulhu_diff_params=$(diff -n ${TESTDIR}/cthulhu_before.dm ${TESTDIR}/cthulhu_after.dm | grep -o '^Cthulhu[^=]\+')
+  $ for param in ${cthulhu_diff_params}; do grep -Fxq "${param}" ${TESTDIR}/runtime_params || echo "ERROR: runtime parameter mismatch - ${param}"; done
+  $ timingila_diff_params=$(diff -n ${TESTDIR}/timingila_before.dm ${TESTDIR}/timingila_after.dm | grep -o '^SoftwareModules[^=]\+')
+  $ for param in ${timingila_diff_params}; do grep -Fxq "${param}" ${TESTDIR}/runtime_params || echo "ERROR: runtime parameter mismatch - ${param}"; done
+
+Check that ApplicationData volumes are available inside the container and use them:
+
+  $ R "${S} && execute_in_container --uuid --cmd 'ls -l /'" | grep volume | awk '{print $9}'
+  volume1
+  volume2
+  $ R "${S} && execute_in_container --uuid --cmd 'echo volume1_content > /volume1/file_volume1'"
+  $ R "${S} && execute_in_container --uuid --cmd 'cat /volume1/file_volume1'"
+  volume1_content
+  $ R "${S} && execute_in_container --uuid --cmd 'echo volume2_content > /volume2/file_volume2'"
+  $ R "${S} && execute_in_container --uuid --cmd 'cat /volume2/file_volume2'"
+  volume2_content
+
+Verify share objects are available on container side:
+
+  $ R "${S} && get_hostobjects"
+  /testdir/:
+  testfile
+  test sharing file
+  /dev/host_serial
+
+Verify that the EnvVariables were properly restored:
+
+  $ R "${S} && execute_in_container --uuid --cmd \"env\" | grep ENVVAR_KEY1"
+  ENVVAR_KEY1=ENVVAR_VALUE1
+  $ R "${S} && execute_in_container --uuid --cmd \"env\" | grep ENVVAR_KEY2"
+  ENVVAR_KEY2=ENVVAR_VALUE2
+
+Check that UDS sockets and the random USP_ENDPOINT_ID are shared with the container:
+
+  $ R "${S} && execute_in_container --uuid --cmd \"env\" | grep USP_ENDPOINT_ID"
+  USP_ENDPOINT_ID=uuid::* (glob)
+  $ R "${S} && execute_in_container --uuid --cmd \"ls /run/usp/\""
+  broker_agent_path
+  broker_controller_path
+
+Check that the container has the required capabilities:
+  $ R "${S} && execute_in_container --uuid --cmd 'grep CapEff /proc/1/status'"
+  CapEff:\t000001ffffffffff (esc)
+  $ R "${S} && get_container_parameter --uuid --param RequiredUserRoles"
+  Device.Users.Role.[RoleName=="full_caps"]
+  $ R "${S} && get_container_parameter --uuid --param AvailableUserRoleCapabilities"
+  CAP_AUDIT_CONTROL,CAP_AUDIT_READ,CAP_AUDIT_WRITE,CAP_BLOCK_SUSPEND,CAP_BPF,CAP_CHECKPOINT_RESTORE,CAP_CHOWN,CAP_DAC_OVERRIDE,CAP_DAC_READ_SEARCH,CAP_FOWNER,CAP_FSETID,CAP_IPC_LOCK,CAP_IPC_OWNER,CAP_KILL,CAP_LEASE,CAP_LINUX_IMMUTABLE,CAP_MAC_ADMIN,CAP_MAC_OVERRIDE,CAP_MKNOD,CAP_NET_ADMIN,CAP_NET_BIND_SERVICE,CAP_NET_BROADCAST,CAP_NET_RAW,CAP_PERFMON,CAP_SETFCAP,CAP_SETGID,CAP_SETPCAP,CAP_SETUID,CAP_SYS_ADMIN,CAP_SYS_BOOT,CAP_SYS_CHROOT,CAP_SYS_MODULE,CAP_SYS_NICE,CAP_SYS_PACCT,CAP_SYS_PTRACE,CAP_SYS_RAWIO,CAP_SYS_RESOURCE,CAP_SYS_TIME,CAP_SYS_TTY_CONFIG,CAP_SYSLOG,CAP_WAKE_ALARM
+
+Check NetworkConfig correctly applied:
+
+  $ CTR_IP=$(R "${S} && get_ctr_ip --uuid")
+  $ R "rm -f /root/.ssh/known_hosts > /dev/null; ssh -y root@${CTR_IP} 'cat /etc/container-version ; ip route show default | grep default' 2> /dev/null"
+  1
+  default via 192.168.*.1 dev lcm0* (glob)
+
+Update to prplOS container to v2:
+
+  $ R "${S} && update_ctr --version prplos-v2 --ee --uuid --privileged true" > /dev/null
+  $ sleep 20
+  $ R "${S} && get_container_info --uuid"
+  Active
+  prplos-v2
+  prpl-foundation/prplos/prplos/prplos/lcm-test-* (glob)
+  $ R "${S} && get_ctr_type --uuid"
+  Privileged container
+  $ R "${S} && execute_in_container --uuid --cmd 'cat /etc/container-version'"
+  2
+
+Uninstall the testing container and check datamodel cleaned:
+
+  $ R "${S} && uninstall_ctr_and_check --uuid --retaindata false"
+  [1]
+
+Cleanup test environment:
+
+  $ R "${S} && remove_user_role --rolename full_caps" > /dev/null
+  $ R "${S} && set_ee_roles --userroles \"\" --roles \"\"" > /dev/null
+  $ R "${S} && check_available_user_roles"
+  
+  $ R "${S} && cleanup_hostobjects"
+  $ R "rm -f /tmp/script_functions.sh"
+  $ rm ${TESTDIR}/*_before.dm ${TESTDIR}/*_after.dm
+  $ rm ${TESTDIR}/runtime_params
diff --git a/.gitlab/tests/cram/generic/lcm/script_functions.sh b/.gitlab/tests/cram/generic/lcm/script_functions.sh
index 21a6861bb9..ac27416c6e 100755
--- a/.gitlab/tests/cram/generic/lcm/script_functions.sh
+++ b/.gitlab/tests/cram/generic/lcm/script_functions.sh
@@ -876,3 +876,23 @@ remove_user_role() {
 	fi
 	${CLI_JSON} "Device.Users.Role.[Alias==\"${rolename}\"].-"
 }
+
+## It simulates a firmware upgrade by stopping and starting the LCM Agent, as
+## well as manually removing critical configurations.
+fake_fw_upgrade() {
+    duid=$(${CLI_JSON} "SoftwareModules.DeploymentUnit.[ UUID == \"${DEFAULT_UUID}\" ].DUID?" | jsonfilter -e @[*].*.DUID)
+    service cthulhu stop
+    service rlyeh stop
+    service timingila stop
+
+    # reset the import status for PCM; otherwise, it won't send import data for the Cthulhu registration
+    ba-cli 'PersistentConfiguration.Service.cthulhu_Cthulhu.ImportStatus=None' > /dev/null
+    rm -rf /etc/config/cthulhu /etc/config/lxc/"${duid}"
+
+    service rlyeh start
+    service cthulhu start
+    service timingila start
+
+    sleep 30
+    wait_ctr_up --uuid "${DEFAULT_UUID}"
+}