diff --git a/Annex/AdjustedBranch.hs b/Annex/AdjustedBranch.hs
index 2d2a985311..67c36f399e 100644
--- a/Annex/AdjustedBranch.hs
+++ b/Annex/AdjustedBranch.hs
@@ -20,6 +20,7 @@ module Annex.AdjustedBranch (
 	adjustToCrippledFileSystem,
 	updateAdjustedBranch,
 	propigateAdjustedCommits,
+	AdjustedClone(..),
 	checkAdjustedClone,
 	isGitVersionSupported,
 	checkVersionSupported,
@@ -539,6 +540,8 @@ diffTreeToTreeItem dti = TreeItem
 	(Git.DiffTree.dstmode dti)
 	(Git.DiffTree.dstsha dti)
 
+data AdjustedClone = InAdjustedClone | NotInAdjustedClone | NeedUpgradeForAdjustedClone
+
 {- Cloning a repository that has an adjusted branch checked out will
  - result in the clone having the same adjusted branch checked out -- but
  - the origbranch won't exist in the clone, nor will the basis.
@@ -547,12 +550,12 @@ diffTreeToTreeItem dti = TreeItem
  - The repository may also need to be upgraded to a new version, if the
  - current version is too old to support adjusted branches. Returns True
  - when this is the case. -}
-checkAdjustedClone :: Annex Bool
+checkAdjustedClone :: Annex AdjustedClone
 checkAdjustedClone = go =<< inRepo Git.Branch.current
   where
-	go Nothing = return False
+	go Nothing = return NotInAdjustedClone
 	go (Just currbranch) = case adjustedToOriginal currbranch of
-		Nothing -> return False
+		Nothing -> return NotInAdjustedClone
 		Just (adj, origbranch) -> do
 			let remotebranch = Git.Ref.underBase "refs/remotes/origin" origbranch
 			let basis@(BasisBranch bb) = basisBranch (originalToAdjusted origbranch adj)
@@ -560,7 +563,10 @@ checkAdjustedClone = go =<< inRepo Git.Branch.current
 				setBasisBranch basis remotebranch
 			unlessM (inRepo $ Git.Ref.exists origbranch) $
 				inRepo $ Git.Branch.update' origbranch remotebranch
-			not <$> versionSupportsUnlockedPointers
+			ifM versionSupportsUnlockedPointers
+				( return InAdjustedClone
+				, return NeedUpgradeForAdjustedClone
+				)
 
 -- git 2.2.0 needed for GIT_COMMON_DIR which is needed
 -- by updateAdjustedBranch to use withWorkTreeRelated.
diff --git a/Annex/Init.hs b/Annex/Init.hs
index 8c20e5e12f..f2996993a1 100644
--- a/Annex/Init.hs
+++ b/Annex/Init.hs
@@ -93,20 +93,23 @@ initialize' mversion = do
 	whenM versionSupportsUnlockedPointers $ do
 		configureSmudgeFilter
 		Database.Keys.scanAssociatedFiles
-	whenM checkAdjustedClone $
-		void $ upgrade True
-	ifM (crippledFileSystem <&&> (not <$> isBare))
-		( ifM versionSupportsUnlockedPointers
-			( adjustToCrippledFileSystem
-			, do
-				enableDirectMode
-				setDirect True
-			)
-		-- Handle case where this repo was cloned from a
-		-- direct mode repo
-		, unlessM isBare
-			switchHEADBack
-		)
+	v <- checkAdjustedClone
+	case v of
+		NeedUpgradeForAdjustedClone -> void $ upgrade True
+		InAdjustedClone -> return ()
+		NotInAdjustedClone ->
+			ifM (crippledFileSystem <&&> (not <$> isBare))
+				( ifM versionSupportsUnlockedPointers
+					( adjustToCrippledFileSystem
+					, do
+						enableDirectMode
+						setDirect True
+					)
+				-- Handle case where this repo was cloned from a
+				-- direct mode repo
+				, unlessM isBare
+					switchHEADBack
+				)
 	createInodeSentinalFile False
 
 uninitialize :: Annex ()