diff --git a/ui/src/app/applications/components/application-create-panel/application-create-panel.tsx b/ui/src/app/applications/components/application-create-panel/application-create-panel.tsx
index 224c3da5f279d..eef8c8ec32103 100644
--- a/ui/src/app/applications/components/application-create-panel/application-create-panel.tsx
+++ b/ui/src/app/applications/components/application-create-panel/application-create-panel.tsx
@@ -108,15 +108,24 @@ export const ApplicationCreatePanel = (props: {
     const [explicitPathType, setExplicitPathType] = React.useState<{path: string; type: models.AppSourceType}>(null);
     const [destFormat, setDestFormat] = React.useState('URL');
     const [retry, setRetry] = React.useState(false);
+    const app = deepMerge(DEFAULT_APP, props.app || {});
+
+    React.useEffect(() => {
+        if (app?.spec?.destination?.name && app.spec.destination.name !== '') {
+            setDestFormat('NAME');
+        } else {
+            setDestFormat('URL');
+        }
+    }, []);
 
     function normalizeTypeFields(formApi: FormApi, type: models.AppSourceType) {
-        const app = formApi.getFormState().values;
+        const appToNormalize = formApi.getFormState().values;
         for (const item of appTypes) {
             if (item.type !== type) {
-                delete app.spec.source[item.field];
+                delete appToNormalize.spec.source[item.field];
             }
         }
-        formApi.setAllValues(app);
+        formApi.setAllValues(appToNormalize);
     }
 
     return (
@@ -132,16 +141,10 @@ export const ApplicationCreatePanel = (props: {
                 }>
                 {({projects, clusters, reposInfo}) => {
                     const repos = reposInfo.map(info => info.repo).sort();
-                    const app = deepMerge(DEFAULT_APP, props.app || {});
                     const repoInfo = reposInfo.find(info => info.repo === app.spec.source.repoURL);
                     if (repoInfo) {
                         normalizeAppSource(app, repoInfo.type || 'git');
                     }
-                    if (app?.spec?.destination?.name && app.spec.destination.name !== '') {
-                        setDestFormat('NAME');
-                    } else {
-                        setDestFormat('URL');
-                    }
                     return (
                         <div className='application-create-panel'>
                             {(yamlMode && (