diff --git a/pkg/sync/sync_context.go b/pkg/sync/sync_context.go
index c2ed67691..c11ff7e0c 100644
--- a/pkg/sync/sync_context.go
+++ b/pkg/sync/sync_context.go
@@ -903,57 +903,48 @@ func (sc *syncContext) ensureCRDReady(name string) error {
 	})
 }
 
-func getDryRunStrategy(serverSideApply, dryRun bool) cmdutil.DryRunStrategy {
-	if !dryRun {
-		return cmdutil.DryRunNone
-	}
-	if serverSideApply {
-		return cmdutil.DryRunServer
-	}
-	return cmdutil.DryRunClient
-}
-
 func (sc *syncContext) applyObject(t *syncTask, dryRun, force, validate bool) (common.ResultCode, string) {
-	serverSideApply := sc.serverSideApply || resourceutil.HasAnnotationOption(t.targetObj, common.AnnotationSyncOptions, common.SyncOptionServerSideApply)
-
-	dryRunStrategy := getDryRunStrategy(serverSideApply, dryRun)
+	dryRunStrategy := cmdutil.DryRunNone
+	if dryRun {
+		// irrespective of the dry run mode set in the sync context, always run
+		// in client dry run mode as the goal is to validate only the
+		// yaml correctness of the rendered manifests.
+		// running dry-run in server mode breaks the auto create namespace feature
+		// https://github.com/argoproj/argo-cd/issues/13874
+		dryRunStrategy = cmdutil.DryRunClient
+	}
 
 	var err error
 	var message string
 	shouldReplace := sc.replace || resourceutil.HasAnnotationOption(t.targetObj, common.AnnotationSyncOptions, common.SyncOptionReplace)
-	applyFn := func(dryRunStrategy cmdutil.DryRunStrategy) (string, error) {
-		if !shouldReplace {
-			return sc.resourceOps.ApplyResource(context.TODO(), t.targetObj, dryRunStrategy, force, validate, serverSideApply, sc.serverSideApplyManager, false)
-		}
-		if t.liveObj == nil {
-			return sc.resourceOps.CreateResource(context.TODO(), t.targetObj, dryRunStrategy, validate)
-		}
-		// Avoid using `kubectl replace` for CRDs since 'replace' might recreate resource and so delete all CRD instances.
-		// The same thing applies for namespaces, which would delete the namespace as well as everything within it,
-		// so we want to avoid using `kubectl replace` in that case as well.
-		if kube.IsCRD(t.targetObj) || t.targetObj.GetKind() == kubeutil.NamespaceKind {
-			update := t.targetObj.DeepCopy()
-			update.SetResourceVersion(t.liveObj.GetResourceVersion())
-			_, err = sc.resourceOps.UpdateResource(context.TODO(), update, dryRunStrategy)
-			if err != nil {
-				return fmt.Sprintf("error when updating: %v", err.Error()), err
+	// if it is a dry run, disable server side apply, as the goal is to validate only the
+	// yaml correctness of the rendered manifests.
+	// running dry-run in server mode breaks the auto create namespace feature
+	// https://github.com/argoproj/argo-cd/issues/13874
+	serverSideApply := !dryRun && (sc.serverSideApply || resourceutil.HasAnnotationOption(t.targetObj, common.AnnotationSyncOptions, common.SyncOptionServerSideApply))
+	if shouldReplace {
+		if t.liveObj != nil {
+			// Avoid using `kubectl replace` for CRDs since 'replace' might recreate resource and so delete all CRD instances.
+			// The same thing applies for namespaces, which would delete the namespace as well as everything within it,
+			// so we want to avoid using `kubectl replace` in that case as well.
+			if kube.IsCRD(t.targetObj) || t.targetObj.GetKind() == kubeutil.NamespaceKind {
+				update := t.targetObj.DeepCopy()
+				update.SetResourceVersion(t.liveObj.GetResourceVersion())
+				_, err = sc.resourceOps.UpdateResource(context.TODO(), update, dryRunStrategy)
+				if err == nil {
+					message = fmt.Sprintf("%s/%s updated", t.targetObj.GetKind(), t.targetObj.GetName())
+				} else {
+					message = fmt.Sprintf("error when updating: %v", err.Error())
+				}
+			} else {
+				message, err = sc.resourceOps.ReplaceResource(context.TODO(), t.targetObj, dryRunStrategy, force)
 			}
-			return fmt.Sprintf("%s/%s updated", t.targetObj.GetKind(), t.targetObj.GetName()), nil
-
+		} else {
+			message, err = sc.resourceOps.CreateResource(context.TODO(), t.targetObj, dryRunStrategy, validate)
 		}
-		return sc.resourceOps.ReplaceResource(context.TODO(), t.targetObj, dryRunStrategy, force)
-	}
-
-	message, err = applyFn(dryRunStrategy)
-
-	// DryRunServer fails with "Kind does not support fieldValidation" error for kubernetes server < 1.25
-	// it fails inside apply.go , o.DryRunVerifier.HasSupport(info.Mapping.GroupVersionKind) line
-	// so we retry with DryRunClient that works for all cases, but cause issues with hooks
-	// Details: https://github.com/argoproj/argo-cd/issues/16177
-	if dryRunStrategy == cmdutil.DryRunServer && err != nil {
-		message, err = applyFn(cmdutil.DryRunClient)
+	} else {
+		message, err = sc.resourceOps.ApplyResource(context.TODO(), t.targetObj, dryRunStrategy, force, validate, serverSideApply, sc.serverSideApplyManager, false)
 	}
-
 	if err != nil {
 		return common.ResultCodeSyncFailed, err.Error()
 	}
diff --git a/pkg/sync/sync_context_test.go b/pkg/sync/sync_context_test.go
index 984787014..0c2e1e14c 100644
--- a/pkg/sync/sync_context_test.go
+++ b/pkg/sync/sync_context_test.go
@@ -5,7 +5,6 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
-	"k8s.io/kubectl/pkg/cmd/util"
 	"net/http"
 	"net/http/httptest"
 	"reflect"
@@ -540,25 +539,6 @@ func (s *APIServerMock) newHttpServer(t *testing.T, apiFailuresCount int) *httpt
 	return server
 }
 
-func TestGetDryRunStrategy(t *testing.T) {
-	t.Run("no dry run", func(t *testing.T) {
-		strategy := getDryRunStrategy(false, false)
-		assert.Equal(t, util.DryRunNone, strategy)
-	})
-	t.Run("no dry run with server side apply", func(t *testing.T) {
-		strategy := getDryRunStrategy(true, false)
-		assert.Equal(t, util.DryRunNone, strategy)
-	})
-	t.Run("dry run with server side apply", func(t *testing.T) {
-		strategy := getDryRunStrategy(true, true)
-		assert.Equal(t, util.DryRunServer, strategy)
-	})
-	t.Run("dry run with client side apply", func(t *testing.T) {
-		strategy := getDryRunStrategy(false, true)
-		assert.Equal(t, util.DryRunClient, strategy)
-	})
-}
-
 func TestServerResourcesRetry(t *testing.T) {
 	type fixture struct {
 		apiServerMock *APIServerMock
diff --git a/pkg/utils/kube/resource_ops.go b/pkg/utils/kube/resource_ops.go
index 864f39cf4..44d39f6d8 100644
--- a/pkg/utils/kube/resource_ops.go
+++ b/pkg/utils/kube/resource_ops.go
@@ -244,7 +244,12 @@ func (k *kubectlResourceOperations) ApplyResource(ctx context.Context, obj *unst
 	span.SetBaggageItem("kind", obj.GetKind())
 	span.SetBaggageItem("name", obj.GetName())
 	defer span.Finish()
-	k.log.Info(fmt.Sprintf("Applying resource %s/%s in cluster: %s, namespace: %s", obj.GetKind(), obj.GetName(), k.config.Host, obj.GetNamespace()))
+	k.log.WithValues(
+		"dry-run", [...]string{"none", "client", "server"}[dryRunStrategy],
+		"manager", manager,
+		"serverSideApply", serverSideApply,
+		"serverSideDiff", serverSideDiff).Info(fmt.Sprintf("Applying resource %s/%s in cluster: %s, namespace: %s", obj.GetKind(), obj.GetName(), k.config.Host, obj.GetNamespace()))
+
 	return k.runResourceCommand(ctx, obj, dryRunStrategy, serverSideDiff, func(f cmdutil.Factory, ioStreams genericclioptions.IOStreams, fileName string) error {
 		cleanup, err := k.processKubectlRun("apply")
 		if err != nil {