diff --git a/changelogs/unreleased/6154-autolayout-bug.yml b/changelogs/unreleased/6154-autolayout-bug.yml
new file mode 100644
index 000000000..622be311c
--- /dev/null
+++ b/changelogs/unreleased/6154-autolayout-bug.yml
@@ -0,0 +1,6 @@
+description: Resolved the issue of cells overlapping in the instance composer
+issue-nr: 6154
+change-type: patch
+destination-branches: [master, iso8]
+sections:
+  bugfix: "{{description}}"
diff --git a/changelogs/unreleased/buildmaster-env-config-scenario.yml b/changelogs/unreleased/buildmaster-env-config-scenario.yml
new file mode 100644
index 000000000..877de1358
--- /dev/null
+++ b/changelogs/unreleased/buildmaster-env-config-scenario.yml
@@ -0,0 +1,3 @@
+description: Fix env 1.6 scenario to take in account all env settings
+change-type: patch
+destination-branches: [master, iso8]
diff --git a/cypress/e2e/scenario-1-environment.cy.js b/cypress/e2e/scenario-1-environment.cy.js
index 6ddbfb816..8dd66a6ec 100644
--- a/cypress/e2e/scenario-1-environment.cy.js
+++ b/cypress/e2e/scenario-1-environment.cy.js
@@ -271,7 +271,7 @@ describe("Environment", () => {
     });
   }
 
-  xit("1.6 Edit environment configuration", function () {
+  it("1.6 Edit environment configuration", function () {
     cy.visit("/console/environment/create");
     fillCreateEnvForm({
       envName: testName(6),
@@ -362,6 +362,39 @@ describe("Environment", () => {
 
     // specific to ISO
     if (Cypress.env("edition") === "iso") {
+      // Change enable_batched_partial_compiles
+      cy.get('[aria-label="Row-enable_batched_partial_compiles"]')
+        .find(".pf-v6-c-switch")
+        .click();
+
+      cy.get('[data-testid="Warning"]').should("exist");
+      cy.get('[aria-label="Row-enable_batched_partial_compiles"]')
+        .find('[aria-label="SaveAction"]')
+        .click();
+      cy.get('[data-testid="Warning"]').should("not.exist");
+
+      // Change lsm_expert_mode
+      cy.get('[aria-label="Row-enable_lsm_expert_mode"]')
+        .find(".pf-v6-c-switch")
+        .click();
+
+      cy.get('[data-testid="Warning"]').should("exist");
+      cy.get('[aria-label="Row-enable_lsm_expert_mode"]')
+        .find('[aria-label="SaveAction"]')
+        .click();
+      cy.get('[data-testid="Warning"]').should("not.exist");
+
+      // Change enable_lsm_transfer_optimization
+      cy.get('[aria-label="Row-enable_lsm_transfer_optimization"]')
+        .find(".pf-v6-c-switch")
+        .click();
+
+      cy.get('[data-testid="Warning"]').should("exist");
+      cy.get('[aria-label="Row-enable_lsm_transfer_optimization"]')
+        .find('[aria-label="SaveAction"]')
+        .click();
+      cy.get('[data-testid="Warning"]').should("not.exist");
+
       // Change lsm_partial_compile
       cy.get('[aria-label="Row-lsm_partial_compile"]')
         .find(".pf-v6-c-switch")
@@ -374,6 +407,15 @@ describe("Environment", () => {
       cy.get('[data-testid="Warning"]').should("not.exist");
     }
 
+    //change environment_metrics_retention
+    cy.get('[aria-label="Row-environment_metrics_retention"]')
+      .find(".pf-v6-c-form-control")
+      .type("{selectAll}375");
+    cy.get('[data-testid="Warning"]').should("exist");
+    cy.get('[aria-label="Row-environment_metrics_retention"]')
+      .find('[aria-label="SaveAction"]')
+      .click();
+
     //change notification_retention
     cy.get('[aria-label="Row-notification_retention"]')
       .find(".pf-v6-c-form-control")
@@ -397,6 +439,29 @@ describe("Environment", () => {
       .click();
     cy.get('[data-testid="Warning"]').should("not.exist");
 
+    //Change recompile_backoff
+    cy.get('[aria-label="Row-recompile_backoff"]')
+      .find(".pf-v6-c-form-control")
+      .type("{selectAll}2");
+    cy.get('[data-testid="Warning"]').should("exist");
+    cy.get('[aria-label="Row-recompile_backoff"]')
+      .find('[aria-label="SaveAction"]')
+      .click();
+    cy.get('[data-testid="Warning"]').should("not.exist");
+    cy.get('[aria-label="Row-recompile_backoff"]')
+      .find(".pf-v6-c-form-control input")
+      .should("have.value", "2");
+
+    //Change reset_deploy_progress_on_start
+    cy.get('[aria-label="Row-reset_deploy_progress_on_start"]')
+      .find(".pf-v6-c-switch")
+      .click();
+    cy.get('[data-testid="Warning"]').should("exist");
+    cy.get('[aria-label="Row-reset_deploy_progress_on_start"]')
+      .find('[aria-label="SaveAction"]')
+      .click();
+    cy.get('[data-testid="Warning"]').should("not.exist");
+
     //Change resource_action_logs_retention
     cy.get('[aria-label="Row-resource_action_logs_retention"]')
       .find(".pf-v6-c-form-control")
diff --git a/cypress/e2e/scenario-2.1-basic-service.cy.js b/cypress/e2e/scenario-2.1-basic-service.cy.js
index 966e0b11a..bcc3b423b 100644
--- a/cypress/e2e/scenario-2.1-basic-service.cy.js
+++ b/cypress/e2e/scenario-2.1-basic-service.cy.js
@@ -186,7 +186,11 @@ if (Cypress.env("edition") === "iso") {
       cy.get('[aria-label="History-Row"]').eq(0).should("contain", "up");
 
       // Selecting a version in the table should change the tags in the heading of the page.
-      cy.get('[aria-label="History-Row"]').eq(1).click();
+      cy.get('[aria-label="History-Row"]')
+        .eq(1)
+        .within(() => {
+          cy.get('[data-label="version"]').click(); //it's done to avoid flake where the tooltip comes in a way and click ins't triggered
+        });
       cy.get('[data-testid="selected-version"]').should(
         "have.text",
         "Version: 2",
@@ -490,7 +494,11 @@ if (Cypress.env("edition") === "iso") {
         .click();
 
       // change version and go to events page. The second version should contain a validation report.
-      cy.get('[aria-label="History-Row"]').eq(7).click();
+      cy.get('[aria-label="History-Row"]')
+        .eq(7)
+        .within(() => {
+          cy.get('[data-label="version"]').click(); //it's done to avoid flake where the tooltip comes in a way and click ins't triggered
+        });
       cy.get('[data-testid="selected-version"]').should(
         "have.text",
         "Version: 2",
diff --git a/src/UI/Components/Diagram/helpers/visual.test.ts b/src/UI/Components/Diagram/helpers/visual.test.ts
index 7a45cf743..eced88499 100644
--- a/src/UI/Components/Diagram/helpers/visual.test.ts
+++ b/src/UI/Components/Diagram/helpers/visual.test.ts
@@ -18,6 +18,7 @@ import {
   updateLabelPosition,
   toggleLooseElement,
   showLinkTools,
+  moveCellsFromColliding,
 } from "./visual";
 
 beforeAll(() => {
@@ -338,3 +339,75 @@ describe("showLinkTools", () => {
     expect(linkView.hasTools()).toBeFalsy();
   });
 });
+
+describe("moveCellsFromColliding", () => {
+  it("should move cells to avoid collision", () => {
+    const graph = new dia.Graph();
+
+    new dia.Paper({
+      model: graph,
+    });
+
+    const entityA = createComposerEntity({
+      serviceModel: Service.a,
+      isCore: false,
+      isEmbeddedEntity: false,
+      isInEditMode: false,
+      attributes: InstanceAttributesA,
+    });
+    const entityB = createComposerEntity({
+      serviceModel: Service.a,
+      isCore: false,
+      isEmbeddedEntity: false,
+      isInEditMode: false,
+      attributes: InstanceAttributesB,
+    });
+
+    graph.addCell(entityA);
+    graph.addCell(entityB);
+
+    entityA.set("position", { x: 0, y: 0 });
+    entityB.set("position", { x: 0, y: 0 });
+
+    moveCellsFromColliding(graph, graph.getCells());
+
+    const updatedCells = graph.getCells();
+
+    expect(updatedCells[0].position()).toEqual({ x: 0, y: 50 });
+    expect(updatedCells[1].position()).toEqual({ x: 0, y: 0 });
+  });
+
+  it("should not move cells if they are not colliding", () => {
+    const graph = new dia.Graph();
+
+    new dia.Paper({
+      model: graph,
+    });
+    const entityA = createComposerEntity({
+      serviceModel: Service.a,
+      isCore: false,
+      isEmbeddedEntity: false,
+      isInEditMode: false,
+      attributes: InstanceAttributesA,
+    });
+    const entityB = createComposerEntity({
+      serviceModel: Service.a,
+      isCore: false,
+      isEmbeddedEntity: false,
+      isInEditMode: false,
+      attributes: InstanceAttributesB,
+    });
+
+    graph.addCell(entityA);
+    graph.addCell(entityB);
+
+    entityA.set("position", { x: 0, y: 0 });
+    entityB.set("position", { x: 200, y: 200 });
+
+    moveCellsFromColliding(graph, graph.getCells());
+    const updatedCells = graph.getCells();
+
+    expect(updatedCells[0].position()).toEqual({ x: 0, y: 0 });
+    expect(updatedCells[1].position()).toEqual({ x: 200, y: 200 });
+  });
+});
diff --git a/src/UI/Components/Diagram/helpers/visual.ts b/src/UI/Components/Diagram/helpers/visual.ts
index dd1eb3845..b9eba9e9d 100644
--- a/src/UI/Components/Diagram/helpers/visual.ts
+++ b/src/UI/Components/Diagram/helpers/visual.ts
@@ -265,3 +265,34 @@ const removeConnectionData = (
     dispatchUpdateServiceOrderItems(elementCell, ActionEnum.UPDATE);
   }
 };
+
+/**
+ * Function that checks if the cells are colliding and moves them if they are
+ *
+ * @param {dia.Graph} graph - The jointJS graph to which entities are be added.
+ * @param {dia.Cell[]} cells - the array of cells to check for collisions
+ */
+export const moveCellsFromColliding = (graph: dia.Graph, cells: dia.Cell[]) => {
+  cells.map((cell) => {
+    let isColliding = false;
+
+    do {
+      const overlappingCells = graph
+        .findModelsInArea(cell.getBBox())
+        .filter((el) => el.id !== cell.id);
+
+      if (overlappingCells.length > 0) {
+        isColliding = true;
+        // an overlap found, change the position
+        const coordinates = cell.position();
+
+        cell.set("position", {
+          x: coordinates.x,
+          y: coordinates.y + 50,
+        });
+      } else {
+        isColliding = false;
+      }
+    } while (isColliding);
+  });
+};
diff --git a/src/UI/Components/Diagram/init.ts b/src/UI/Components/Diagram/init.ts
index 63e788b50..8f0363416 100644
--- a/src/UI/Components/Diagram/init.ts
+++ b/src/UI/Components/Diagram/init.ts
@@ -10,6 +10,7 @@ import {
   applyCoordinatesToCells,
   getCellsCoordinates,
   getKeyAttributesNames,
+  moveCellsFromColliding,
 } from "./helpers";
 import { toggleLooseElement } from "./helpers";
 import {
@@ -170,6 +171,9 @@ export function diagramInit(
           if (parsedCoordinates.version === "v2") {
             applyCoordinatesToCells(graph, parsedCoordinates.data);
           }
+
+          // check for overlapping cells and adjust the position - this is the case when some cells are added through regular forms
+          moveCellsFromColliding(graph, cells);
         }
       }