diff --git a/engine/schema/src/main/resources/META-INF/db/schema-41800to41810.sql b/engine/schema/src/main/resources/META-INF/db/schema-41800to41810.sql
index b3600522f99..4f27d0408d7 100644
--- a/engine/schema/src/main/resources/META-INF/db/schema-41800to41810.sql
+++ b/engine/schema/src/main/resources/META-INF/db/schema-41800to41810.sql
@@ -19,6 +19,9 @@
 -- Schema upgrade from 4.18.0.0 to 4.18.1.0
 --;
 
+-- Update conserve_mode of the default network offering for Tungsten Fabric (this fixes issue #7241)
+UPDATE `cloud`.`network_offerings` SET conserve_mode = 0 WHERE unique_name ='DefaultTungstenFarbicNetworkOffering';
+
 -- Add Windows Server 2022 guest OS and mappings
 CALL ADD_GUEST_OS_AND_HYPERVISOR_MAPPING (6, 'Windows Server 2022 (64-bit)', 'KVM', 'default', 'Windows Server 2022 (64-bit)');
 CALL ADD_GUEST_OS_AND_HYPERVISOR_MAPPING (6, 'Windows Server 2022 (64-bit)', 'VMware', '7.0', 'windows2019srvNext_64Guest');
diff --git a/plugins/network-elements/tungsten/src/main/java/org/apache/cloudstack/network/tungsten/api/command/ConfigTungstenFabricServiceCmd.java b/plugins/network-elements/tungsten/src/main/java/org/apache/cloudstack/network/tungsten/api/command/ConfigTungstenFabricServiceCmd.java
index 8544ec9bf97..305eb60abb2 100644
--- a/plugins/network-elements/tungsten/src/main/java/org/apache/cloudstack/network/tungsten/api/command/ConfigTungstenFabricServiceCmd.java
+++ b/plugins/network-elements/tungsten/src/main/java/org/apache/cloudstack/network/tungsten/api/command/ConfigTungstenFabricServiceCmd.java
@@ -166,7 +166,7 @@ public class ConfigTungstenFabricServiceCmd extends BaseCmd {
                     networkOfferingVO = new NetworkOfferingVO(NETWORKOFFERING,
                             "Default offering for Tungsten-Fabric Network", Networks.TrafficType.Guest, false, false,
                             null, null, true, NetworkOffering.Availability.Optional, null, Network.GuestType.Isolated,
-                            true, false, false, false, true, false);
+                            false, false, false, false, true, false);
                     networkOfferingVO.setForTungsten(true);
                     networkOfferingVO.setState(NetworkOffering.State.Enabled);
                     networkOfferingDao.persist(networkOfferingVO);