diff --git a/cmd/cli/kubectl-kyverno/apply/apply_command_test.go b/cmd/cli/kubectl-kyverno/apply/apply_command_test.go
index bf57d40eb3..953f2db4f4 100644
--- a/cmd/cli/kubectl-kyverno/apply/apply_command_test.go
+++ b/cmd/cli/kubectl-kyverno/apply/apply_command_test.go
@@ -53,9 +53,9 @@ func Test_Apply(t *testing.T) {
 					Summary: preport.PolicyReportSummary{
 						Pass:  1,
 						Fail:  1,
-						Skip:  4,
+						Skip:  8,
 						Error: 0,
-						Warn:  0,
+						Warn:  2,
 					},
 				},
 			},
diff --git a/cmd/cli/kubectl-kyverno/utils/common/common.go b/cmd/cli/kubectl-kyverno/utils/common/common.go
index 450a55f57c..5612e829d9 100644
--- a/cmd/cli/kubectl-kyverno/utils/common/common.go
+++ b/cmd/cli/kubectl-kyverno/utils/common/common.go
@@ -728,8 +728,16 @@ func ProcessValidateEngineResponse(policy v1.PolicyInterface, validateResponse *
 					vrule.Status = report.StatusPass
 
 				case response.RuleStatusFail:
-					rc.Fail++
-					vrule.Status = report.StatusFail
+					ann := policy.GetAnnotations()
+					if scored, ok := ann[policyreport.ScoredLabel]; ok && scored == "false" {
+						rc.Warn++
+						vrule.Status = report.StatusWarn
+						break
+					} else {
+						rc.Fail++
+						vrule.Status = report.StatusFail
+					}
+
 					if !policyReport {
 						if printCount < 1 {
 							fmt.Printf("\npolicy %s -> resource %s failed: \n", policy.GetName(), resPath)
diff --git a/pkg/policyreport/builder.go b/pkg/policyreport/builder.go
index 5b8738fbc4..f8d45bb28c 100755
--- a/pkg/policyreport/builder.go
+++ b/pkg/policyreport/builder.go
@@ -313,7 +313,7 @@ func toPolicyResult(status response.RuleStatus) string {
 
 const categoryLabel string = "policies.kyverno.io/category"
 const severityLabel string = "policies.kyverno.io/severity"
-const scoredLabel string = "policies.kyverno.io/scored"
+const ScoredLabel string = "policies.kyverno.io/scored"
 
 type annotationValues struct {
 	category string
@@ -342,7 +342,7 @@ func (builder *requestBuilder) fetchAnnotationValues(policy, ns string) annotati
 	if severity, ok := ann[severityLabel]; ok {
 		av.setSeverityFromString(severity)
 	}
-	if scored, ok := ann[scoredLabel]; ok {
+	if scored, ok := ann[ScoredLabel]; ok {
 		if scored == "false" {
 			av.scored = false
 		} else {
diff --git a/test/cli/apply/policies/policy.yaml b/test/cli/apply/policies/policy.yaml
index 0b84e4aad5..b3df63354e 100644
--- a/test/cli/apply/policies/policy.yaml
+++ b/test/cli/apply/policies/policy.yaml
@@ -21,4 +21,36 @@ spec:
       pattern:
         spec:
           containers:
-          - image: "!*:latest"
\ No newline at end of file
+          - image: "!*:latest"
+---
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: drop-all-capabilities
+  annotations:
+    policies.kyverno.io/scored: "false"
+spec:
+  validationFailureAction: audit
+  rules:
+    - name: require-drop-all
+      match:
+        any:
+        - resources:
+            kinds:
+              - Pod
+      preconditions:
+        all:
+        - key: "{{ request.operation }}"
+          operator: NotEquals
+          value: DELETE
+      validate:
+        message: >-
+          Containers must drop `ALL` capabilities.
+        foreach:
+          - list: request.object.spec.[ephemeralContainers, initContainers, containers][]
+            deny:
+              conditions:
+                all:
+                - key: ALL
+                  operator: AnyNotIn
+                  value: "{{ element.securityContext.capabilities.drop || '' }}"
diff --git a/test/cli/test/depecated_apis/kyverno-test.yaml b/test/cli/test/depecated_apis/kyverno-test.yaml
index b14e070173..e3b3ed3ab6 100644
--- a/test/cli/test/depecated_apis/kyverno-test.yaml
+++ b/test/cli/test/depecated_apis/kyverno-test.yaml
@@ -13,4 +13,4 @@ results:
     rule: validate-v1-25-removal
     resource: hello-fail
     kind: CronJob
-    status: fail
\ No newline at end of file
+    status: warn
\ No newline at end of file
diff --git a/test/cli/test/depecated_apis/policy.yaml b/test/cli/test/depecated_apis/policy.yaml
index ec03ceafbe..469ccd7d3d 100644
--- a/test/cli/test/depecated_apis/policy.yaml
+++ b/test/cli/test/depecated_apis/policy.yaml
@@ -3,6 +3,7 @@ kind: ClusterPolicy
 metadata:
   name: check-deprecated-api
   annotations:
+    policies.kyverno.io/scored: "false"
     policies.kyverno.io/title: Check deprecated APIs
     policies.kyverno.io/category: Best Practices
     policies.kyverno.io/subject: Kubernetes APIs