diff --git a/0001-tests-Adapt-VM-phase-expectation.patch b/0001-tests-Adapt-VM-phase-expectation.patch
deleted file mode 100644
index 1e0fa8f..0000000
--- a/0001-tests-Adapt-VM-phase-expectation.patch
+++ /dev/null
@@ -1,29 +0,0 @@
-From aa6647c263408bdf0518d74da2d4c37d3bb42de0 Mon Sep 17 00:00:00 2001
-From: Vasiliy Ulyanov <vulyanov@suse.de>
-Date: Wed, 13 Dec 2023 08:10:37 +0100
-Subject: [PATCH] tests: Adapt VM phase expectation
-
-When CDI uses volume populators with malformed DataVolume, the VM
-initially transitions to Scheduling phase.
-
-Signed-off-by: Vasiliy Ulyanov <vulyanov@suse.de>
----
- tests/storage/datavolume.go | 2 +-
- 1 file changed, 1 insertion(+), 1 deletion(-)
-
-diff --git a/tests/storage/datavolume.go b/tests/storage/datavolume.go
-index 46677257d..9d86d0eac 100644
---- a/tests/storage/datavolume.go
-+++ b/tests/storage/datavolume.go
-@@ -536,7 +536,7 @@ var _ = SIGDescribe("DataVolume Integration", func() {
- 				vm, err = virtClient.VirtualMachine(vm.Namespace).Create(context.Background(), vm)
- 				Expect(err).ToNot(HaveOccurred())
- 
--				Eventually(ThisVMIWith(vm.Namespace, vm.Name), 100).Should(BeInPhase(v1.Pending))
-+				Eventually(ThisVMIWith(vm.Namespace, vm.Name), 100).Should(Or(BeInPhase(v1.Pending), BeInPhase(v1.Scheduling)))
- 
- 				By("Creating a service which makes the registry reachable")
- 				_, err = virtClient.CoreV1().Services(vm.Namespace).Create(context.Background(), &k8sv1.Service{
--- 
-2.43.0
-
diff --git a/_service b/_service
index c816821..06497a7 100644
--- a/_service
+++ b/_service
@@ -1,7 +1,7 @@
 <services>
   <service name="tar_scm" mode="manual">
     <param name="filename">kubevirt</param>
-    <param name="revision">v1.1.1</param>
+    <param name="revision">v1.2.0</param>
     <param name="scm">git</param>
     <param name="submodules">disable</param>
     <param name="url">https://github.com/kubevirt/kubevirt</param>
diff --git a/disks-images-provider.yaml b/disks-images-provider.yaml
index 9791840..3ea3bc1 100644
--- a/disks-images-provider.yaml
+++ b/disks-images-provider.yaml
@@ -22,7 +22,7 @@ spec:
       serviceAccountName: kubevirt-testing
       containers:
         - name: target
-          image: quay.io/kubevirt/disks-images-provider:v1.1.1
+          image: quay.io/kubevirt/disks-images-provider:v1.2.0
           imagePullPolicy: Always
           lifecycle:
             preStop:
diff --git a/kubevirt-1.1.1.tar.gz b/kubevirt-1.1.1.tar.gz
deleted file mode 100644
index c5737b1..0000000
--- a/kubevirt-1.1.1.tar.gz
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:da1fc9f836684d3cd97b4d1b2815589edcdfa5ebb6a198c11722dabe7606aa7b
-size 16294545
diff --git a/kubevirt-1.2.0.tar.gz b/kubevirt-1.2.0.tar.gz
new file mode 100644
index 0000000..9ab9e09
--- /dev/null
+++ b/kubevirt-1.2.0.tar.gz
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:e5a0d708d26c650ce64e60dec4a3525412d5c9f5ec04f6c2e25ba29fc9bef321
+size 16911337
diff --git a/kubevirt.changes b/kubevirt.changes
index 9ed1082..ccdbcbf 100644
--- a/kubevirt.changes
+++ b/kubevirt.changes
@@ -1,3 +1,12 @@
+-------------------------------------------------------------------
+Wed Mar  6 07:45:30 UTC 2024 - Vasily Ulyanov <vasily.ulyanov@suse.com>
+
+- Update to version 1.2.0
+  Release notes https://github.com/kubevirt/kubevirt/releases/tag/v1.2.0
+- Drop upstreamed patch
+  0001-tests-Adapt-VM-phase-expectation.patch
+- Pack configuration files for libvirt
+
 -------------------------------------------------------------------
 Fri Jan 12 06:27:45 UTC 2024 - Vasily Ulyanov <vasily.ulyanov@suse.com>
 
diff --git a/kubevirt.spec b/kubevirt.spec
index 5f91af3..c7aa820 100644
--- a/kubevirt.spec
+++ b/kubevirt.spec
@@ -30,7 +30,7 @@
 %endif
 
 Name:           kubevirt
-Version:        1.1.1
+Version:        1.2.0
 Release:        0
 Summary:        Container native virtualization
 License:        Apache-2.0
@@ -41,13 +41,12 @@ Source1:        kubevirt_containers_meta
 Source2:        kubevirt_containers_meta.service
 Source3:        %{url}/releases/download/v%{version}/disks-images-provider.yaml
 Source100:      %{name}-rpmlintrc
-Patch1:         0001-tests-Adapt-VM-phase-expectation.patch
 BuildRequires:  glibc-devel-static
 BuildRequires:  golang-packaging
 BuildRequires:  pkgconfig
 BuildRequires:  rsync
 BuildRequires:  sed
-BuildRequires:  golang(API) >= 1.19
+BuildRequires:  golang(API) >= 1.21
 BuildRequires:  pkgconfig(libvirt)
 ExclusiveArch:  %{_exclusive_arch}
 
@@ -280,6 +279,11 @@ install -p -m 0644 cmd/virt-handler/virt_launcher.cil %{buildroot}%{_datadir}/ku
 mkdir -p %{buildroot}%{_datadir}/kube-virt/pr-helper
 install -p -m 0644 cmd/pr-helper/multipath.conf %{buildroot}%{_datadir}/kube-virt/pr-helper/
 
+# Configuration files for libvirt
+mkdir -p %{buildroot}%{_datadir}/kube-virt/virt-launcher
+install -p -m 0644 cmd/virt-launcher/virtqemud.conf %{buildroot}%{_datadir}/kube-virt/virt-launcher
+install -p -m 0644 cmd/virt-launcher/qemu.conf %{buildroot}%{_datadir}/kube-virt/virt-launcher
+
 # Install release manifests
 mkdir -p %{buildroot}%{_datadir}/kube-virt/manifests/release
 install -m 0644 _out/manifests/release/kubevirt-operator.yaml %{buildroot}%{_datadir}/kube-virt/manifests/release/
@@ -340,12 +344,15 @@ install -m 0644 %{S:2} %{buildroot}%{_prefix}/lib/obs/service
 %files virt-launcher
 %license LICENSE
 %doc README.md
+%dir %{_datadir}/kube-virt
+%dir %{_datadir}/kube-virt/virt-launcher
 %{_bindir}/virt-launcher
 %{_bindir}/virt-launcher-monitor
 %{_bindir}/virt-freezer
 %{_bindir}/virt-probe
 %{_bindir}/virt-tail
 %{_bindir}/node-labeller.sh
+%{_datadir}/kube-virt/virt-launcher
 
 %files virt-operator
 %license LICENSE