diff --git a/sky/jobs/utils.py b/sky/jobs/utils.py
index ce0226defb4..bd29c8caa36 100644
--- a/sky/jobs/utils.py
+++ b/sky/jobs/utils.py
@@ -266,6 +266,12 @@ def is_consolidation_mode(on_api_restart: bool = False) -> bool:
 
 def ha_recovery_for_consolidation_mode():
     """Recovery logic for HA mode."""
+    # Touch the signal file here to avoid conflict with
+    # update_managed_jobs_statuses. Although we run this first and then start
+    # the deamon, this function is also called in cancel_jobs_by_id.
+    signal_file = pathlib.Path(
+        constants.PERSISTENT_RUN_RESTARTING_SIGNAL_FILE).expanduser()
+    signal_file.touch()
     # No setup recovery is needed in consolidation mode, as the API server
     # already has all runtime installed. Directly start jobs recovery here.
     # Refers to sky/templates/kubernetes-ray.yml.j2 for more details.
@@ -312,6 +318,7 @@ def ha_recovery_for_consolidation_mode():
                         f'{datetime.datetime.now()}\n')
         f.write(f'HA recovery completed at {datetime.datetime.now()}\n')
         f.write(f'Total recovery time: {time.time() - start} seconds\n')
+    signal_file.unlink()
 
 
 async def get_job_status(