diff --git a/cmd/vclusterctl/cmd/create.go b/cmd/vclusterctl/cmd/create.go
index eccb7bbc39..ed24b7fd97 100644
--- a/cmd/vclusterctl/cmd/create.go
+++ b/cmd/vclusterctl/cmd/create.go
@@ -225,9 +225,11 @@ func (cmd *CreateCmd) Run(ctx context.Context, args []string) error {
 		defer f.Close()
 
 		cfg := &config.Config{}
-		err = cfg.Validate(f)
+		err = cfg.DecodeYAML(f)
 		if err != nil {
-			cmd.log.Infof("Consider using %q to convert the old values format to the new 0.20 format", "vcluster migrate values")
+			if errors.Is(err, config.ErrInvalidFileFormat) {
+				cmd.log.Infof("If you are using the old values format, consider using %q to convert it to the new 0.20 format", "vcluster migrate values")
+			}
 			return err
 		}
 	}
diff --git a/config/config.go b/config/config.go
index f354059ff7..5c6e035406 100644
--- a/config/config.go
+++ b/config/config.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	_ "embed"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"reflect"
@@ -17,6 +18,8 @@ import (
 //go:embed values.yaml
 var Values string
 
+var ErrInvalidFileFormat = errors.New("invalid file format")
+
 // NewDefaultConfig creates a new config based on the values.yaml, including all default values.
 func NewDefaultConfig() (*Config, error) {
 	retConfig := &Config{}
@@ -76,7 +79,7 @@ type Config struct {
 	Plugin map[string]Plugin `json:"plugin,omitempty"`
 }
 
-func (c *Config) Validate(r io.Reader) error {
+func (c *Config) DecodeYAML(r io.Reader) error {
 	o, err := io.ReadAll(r)
 	if err != nil {
 		return err
@@ -92,7 +95,7 @@ func (c *Config) Validate(r io.Reader) error {
 
 	err = dec.Decode(c)
 	if err != nil {
-		return fmt.Errorf("invalid values file format: %w", err)
+		return fmt.Errorf("%w: %w", ErrInvalidFileFormat, err)
 	}
 
 	return nil
diff --git a/config/config_test.go b/config/config_test.go
index 5d17cf93f1..eeb47df85e 100644
--- a/config/config_test.go
+++ b/config/config_test.go
@@ -7,7 +7,7 @@ import (
 	"testing"
 )
 
-func TestConfig_Validate(t *testing.T) {
+func TestConfig_DecodeYAML(t *testing.T) {
 	type args struct {
 		r io.Reader
 	}
@@ -17,7 +17,7 @@ func TestConfig_Validate(t *testing.T) {
 		wantErr bool
 	}{
 		{
-			name: "Invalid",
+			name: "Invalid: yaml",
 			args: args{
 				r: bytes.NewReader([]byte(`
 foo:
@@ -27,7 +27,20 @@ foo:
 			wantErr: true,
 		},
 		{
-			name: "Invalid (old values format)",
+			name: "Invalid: yaml",
+			args: args{
+				r: bytes.NewReader([]byte(`
+{
+  "foo": {
+    "bar": "baz"
+  }
+}
+`)),
+			},
+			wantErr: true,
+		},
+		{
+			name: "Invalid: Old values format",
 			args: args{
 				r: bytes.NewReader([]byte(`
 api:
@@ -51,13 +64,30 @@ telemetry:
 			wantErr: true,
 		},
 		{
-			name: "Success (new values format)",
+			name: "Success: New values format",
 			args: args{
 				r: bytes.NewReader([]byte(`
 controlPlane:
   distro:
     k8s:
       enabled: true
+`)),
+			},
+			wantErr: false,
+		},
+		{
+			name: "Success: New values format (json)",
+			args: args{
+				r: bytes.NewReader([]byte(`
+{
+  "controlPlane": {
+    "distro": {
+      "k8s": {
+        "enabled": true
+      }
+    }
+  }
+}
 `)),
 			},
 			wantErr: false,
@@ -66,7 +96,7 @@ controlPlane:
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
 			c := &Config{}
-			if err := c.Validate(tt.args.r); (err != nil) != tt.wantErr {
+			if err := c.DecodeYAML(tt.args.r); (err != nil) != tt.wantErr {
 				t.Errorf("Config.Validate() error = %v, wantErr %v", err, tt.wantErr)
 			}
 		})