diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.test.ts b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.test.ts
index be7884aad753d..550a288dad371 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.test.ts
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.test.ts
@@ -143,6 +143,7 @@ describe('useSetupTechnology', () => {
     namespace: 'default',
     is_managed: false,
     supports_agentless: false,
+    inactivity_timeout: 3600,
   };
   const packagePolicyMock = createPackagePolicyMock();
 
@@ -169,6 +170,7 @@ describe('useSetupTechnology', () => {
     (generateNewAgentPolicyWithDefaults as MockFn).mockReturnValue({
       name: 'Agentless policy for endpoint-1',
       supports_agentless: true,
+      inactivity_timeout: 3600,
     });
     jest.clearAllMocks();
   });
@@ -266,12 +268,14 @@ describe('useSetupTechnology', () => {
     act(() => {
       result.current.handleSetupTechnologyChange(SetupTechnology.AGENTLESS);
     });
+
     waitForNextUpdate();
 
     expect(result.current.selectedSetupTechnology).toBe(SetupTechnology.AGENTLESS);
     expect(setNewAgentPolicy).toHaveBeenCalledWith({
       name: 'Agentless policy for endpoint-1',
       supports_agentless: true,
+      inactivity_timeout: 3600,
     });
   });
 
@@ -307,6 +311,7 @@ describe('useSetupTechnology', () => {
 
     expect(result.current.selectedSetupTechnology).toBe(SetupTechnology.AGENTLESS);
     expect(setNewAgentPolicy).toHaveBeenCalledWith({
+      inactivity_timeout: 3600,
       name: 'Agentless policy for endpoint-1',
       supports_agentless: true,
     });
@@ -325,6 +330,7 @@ describe('useSetupTechnology', () => {
     waitFor(() => {
       expect(setNewAgentPolicy).toHaveBeenCalledWith({
         name: 'Agentless policy for endpoint-2',
+        inactivity_timeout: 3600,
         supports_agentless: true,
       });
     });
@@ -505,6 +511,7 @@ describe('useSetupTechnology', () => {
       expect(setNewAgentPolicy).toHaveBeenCalledWith({
         name: 'Agentless policy for endpoint-1',
         supports_agentless: true,
+        inactivity_timeout: 3600,
       });
     });
 
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
index fb6aefcf7583e..95b4aa80a02bb 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
@@ -99,12 +99,14 @@ export function useSetupTechnology({
   const [selectedSetupTechnology, setSelectedSetupTechnology] = useState<SetupTechnology>(
     SetupTechnology.AGENT_BASED
   );
-  const [newAgentlessPolicy, setNewAgentlessPolicy] = useState<AgentPolicy | NewAgentPolicy>(
-    generateNewAgentPolicyWithDefaults({
+  const [newAgentlessPolicy, setNewAgentlessPolicy] = useState<AgentPolicy | NewAgentPolicy>(() => {
+    const agentless = generateNewAgentPolicyWithDefaults({
+      inactivity_timeout: 3600,
       supports_agentless: true,
       monitoring_enabled: ['logs', 'metrics'],
-    })
-  );
+    });
+    return agentless;
+  });
 
   useEffect(() => {
     if (isEditPage && agentPolicies && agentPolicies.some((policy) => policy.supports_agentless)) {
@@ -116,7 +118,7 @@ export function useSetupTechnology({
         ...newAgentlessPolicy,
         name: getAgentlessAgentPolicyNameFromPackagePolicyName(packagePolicy.name),
       };
-      if (nextNewAgentlessPolicy.name !== newAgentlessPolicy.name) {
+      if (!newAgentlessPolicy.name || nextNewAgentlessPolicy.name !== newAgentlessPolicy.name) {
         setNewAgentlessPolicy(nextNewAgentlessPolicy);
         setNewAgentPolicy(nextNewAgentlessPolicy as NewAgentPolicy);
         updateAgentPolicies([nextNewAgentlessPolicy] as AgentPolicy[]);