diff --git a/subiquity/server/controllers/identity.py b/subiquity/server/controllers/identity.py
index 66e242f2..47981a75 100644
--- a/subiquity/server/controllers/identity.py
+++ b/subiquity/server/controllers/identity.py
@@ -22,8 +22,8 @@ import attr
 from subiquity.common.apidef import API
 from subiquity.common.resources import resource_path
 from subiquity.common.types import IdentityData, UsernameValidation
+from subiquity.server.autoinstall import AutoinstallError
 from subiquity.server.controller import SubiquityController
-from subiquitycore.context import with_context
 
 log = logging.getLogger("subiquity.server.controllers.identity")
 
@@ -79,18 +79,29 @@ class IdentityController(SubiquityController):
                 crypted_password=data["password"],
             )
             self.model.add_user(identity_data)
-
-    @with_context()
-    async def apply_autoinstall_config(self, context=None):
-        if self.model.user:
             return
+
+        # The identity section is required except if (any):
+        # 1. a user-data section is provided
         if "user-data" in self.app.autoinstall_config:
             return
-        if self.app.base_model.target is None:
-            return
+        # 2. we are installing not-Server (Desktop)
         if self.app.base_model.source.current.variant != "server":
             return
-        raise Exception("neither identity nor user-data provided")
+        # 3. we are only refreshing the reset partition
+        # (The identity controller doesn't figure this out until the apply
+        # step, so we are going to cheat and inspect the situation here)
+        storage_config = self.app.autoinstall_config.get("storage")
+        if (
+            storage_config is not None
+            and storage_config.get("layout") is not None
+            and storage_config["layout"].get("reset-partition-only")
+        ):
+            return
+        # 4. identity section is interactive
+        if self.interactive():
+            return
+        raise AutoinstallError("neither identity nor user-data provided")
 
     def make_autoinstall(self):
         if self.model.user is None:
diff --git a/subiquity/server/controllers/tests/test_identity.py b/subiquity/server/controllers/tests/test_identity.py
index 5f2118a0..c05e4a9d 100644
--- a/subiquity/server/controllers/tests/test_identity.py
+++ b/subiquity/server/controllers/tests/test_identity.py
@@ -16,6 +16,7 @@
 import jsonschema
 from jsonschema.validators import validator_for
 
+from subiquity.server.autoinstall import AutoinstallError
 from subiquity.server.controllers.identity import IdentityController
 from subiquitycore.tests import SubiTestCase
 from subiquitycore.tests.mocks import make_app
@@ -42,10 +43,48 @@ class TestControllerUserCreationFlows(SubiTestCase):
 
     async def test_server_requires_identity_case_4a1(self):
         self.app.base_model.source.current.variant = "server"
-        with self.assertRaises(Exception):
-            await self.ic.apply_autoinstall_config()
+
+        # Autoinstall: no identity or user data and identity is not interactive
+        self.app.autoinstall_config = {"interactive-sections": ["not-identity"]}
+        with self.assertRaises(AutoinstallError):
+            self.ic.load_autoinstall_data(None)
+
+    async def test_server_requires_identity_case_4a1__ok_interactive(self):
+        """Test no require identity for interactive identity"""
+        self.app.base_model.source.current.variant = "server"
+
+        # Explicitly interactive
+        self.app.autoinstall_config = {"interactive-sections": ["identity"]}
+        self.ic.load_autoinstall_data(None)
+
+        # Implicitly interactive
+        self.app.autoinstall_config = {"interactive-sections": ["*"]}
+        self.ic.load_autoinstall_data(None)
+
+        # No Autoinstall => interactive
+        self.app.autoinstall_config = {}
+        self.ic.load_autoinstall_data(None)
+
+    async def test_server_requires_identity_case_4a1__reset_only_true(self):
+        """Test no require identity for reset-partition-only=yes."""
+        self.app.base_model.source.current.variant = "server"
+
+        # No raise if reset-parition-only specified
+        self.app.autoinstall_config = {
+            "storage": {"layout": {"reset-partition-only": True}}
+        }
+        self.ic.load_autoinstall_data(None)
+
+    async def test_server_requires_identity_case_4a1__reset_only_false(self):
+        """Test require identity for reset-partition-only=no."""
+        self.app.base_model.source.current.variant = "server"
+
+        # raises if no reset-parition-only in storage:layout:
+        self.app.autoinstall_config = {"storage": {"layout": {}}}
+        with self.assertRaises(AutoinstallError):
+            self.ic.load_autoinstall_data(None)
 
     async def test_desktop_does_not_require_identity_case_4a2(self):
         self.app.base_model.source.current.variant = "desktop"
-        await self.ic.apply_autoinstall_config()
+        self.ic.load_autoinstall_data(None)
         # should not raise