diff --git a/.versionbot/CHANGELOG.yml b/.versionbot/CHANGELOG.yml
index 7a5a3ea1..d613670f 100644
--- a/.versionbot/CHANGELOG.yml
+++ b/.versionbot/CHANGELOG.yml
@@ -1,3 +1,59 @@
+- commits:
+    - subject: Retry DELTA_APPLY_RETRY_COUNT (3) times during delta apply fail before
+        reverting to regular pull
+      hash: 341111f1f94cd9f17fd7be9b6f21e3bc22c9ad3a
+      body: >
+        This prevents an image download error loop where the delta image on the
+        delta server is present,
+
+        but some aspect of the delta image or the base image on the device does
+        not match up, causing
+
+        the delta to fail to be applied to the base image.
+
+
+        Delta apply errors don't raise status codes as they are thrown from the
+        Engine (although they should),
+
+        so if an error with a status code is raised during this time, throw an
+        error to the handler
+
+        indicating that the delta should be retried until success. Errors with
+        status codes raised during
+
+        this time are largely network related, so falling back to a regular pull
+        won't improve anything.
+
+
+        Upon delta apply errors exceeding DELTA_APPLY_RETRY_COUNT, revert to a
+        regular pull.
+      footer:
+        Change-type: patch
+        change-type: patch
+        Signed-off-by: Christina Ying Wang <christina@balena.io>
+        signed-off-by: Christina Ying Wang <christina@balena.io>
+      author: Christina Ying Wang
+      nested: []
+    - subject: Revert to regular pull immediately on delta server failure (code 400s)
+      hash: 1fc242200f78e4219aafc5bb91de8cf0916236af
+      body: >
+        If the delta server responds immediately with HTTP 4xx upon requesting a
+        delta image,
+
+        this means the server is not able to supply the resource, so fall back
+        to a regular pull
+
+        immediately.
+      footer:
+        Change-type: patch
+        change-type: patch
+        Signed-off-by: Christina Ying Wang <christina@balena.io>
+        signed-off-by: Christina Ying Wang <christina@balena.io>
+      author: Christina Ying Wang
+      nested: []
+  version: 16.12.3
+  title: ""
+  date: 2025-02-19T20:51:53.085Z
 - commits:
     - subject: Update balena-io/deploy-to-balena-action action to v2.0.92
       hash: c57622e2264e41078e907d6ba8de9d5206bb6293
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 56a97ec9..5b95d576 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,12 @@ All notable changes to this project will be documented in this file
 automatically by Versionist. DO NOT EDIT THIS FILE MANUALLY!
 This project adheres to [Semantic Versioning](http://semver.org/).
 
+# v16.12.3
+## (2025-02-19)
+
+* Retry DELTA_APPLY_RETRY_COUNT (3) times during delta apply fail before reverting to regular pull [Christina Ying Wang]
+* Revert to regular pull immediately on delta server failure (code 400s) [Christina Ying Wang]
+
 # v16.12.2
 ## (2025-02-11)
 
diff --git a/VERSION b/VERSION
index 04365e31..f1197ec3 100644
--- a/VERSION
+++ b/VERSION
@@ -1 +1 @@
-16.12.2
\ No newline at end of file
+16.12.3
\ No newline at end of file
diff --git a/balena.yml b/balena.yml
index a4abdd7e..f48942a6 100644
--- a/balena.yml
+++ b/balena.yml
@@ -2,6 +2,6 @@ name: balena-supervisor
 description: 'Balena Supervisor: balena''s agent on devices.'
 joinable: false
 type: sw.application
-version: 16.12.2
+version: 16.12.3
 provides:
   - slug: sw.compose.long-volume-syntax
diff --git a/package-lock.json b/package-lock.json
index 2424aab9..acac3b0b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "balena-supervisor",
-  "version": "16.12.2",
+  "version": "16.12.3",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "balena-supervisor",
-      "version": "16.12.2",
+      "version": "16.12.3",
       "license": "Apache-2.0",
       "dependencies": {
         "@balena/systemd": "^0.5.0",
diff --git a/package.json b/package.json
index 49ad485b..dd76480a 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "balena-supervisor",
   "description": "This is balena's Supervisor, a program that runs on IoT devices and has the task of running user Apps (which are Docker containers), and updating them as the balena API informs it to.",
-  "version": "16.12.2",
+  "version": "16.12.3",
   "license": "Apache-2.0",
   "repository": {
     "type": "git",
@@ -137,6 +137,6 @@
     "yargs": "^17.7.2"
   },
   "versionist": {
-    "publishedAt": "2025-02-11T01:04:23.262Z"
+    "publishedAt": "2025-02-19T20:51:53.619Z"
   }
 }