diff --git a/go.mod b/go.mod
index 5d0058c310..300db2d465 100644
--- a/go.mod
+++ b/go.mod
@@ -62,14 +62,14 @@ require (
 	github.com/gorilla/websocket v1.5.3
 	github.com/jinzhu/copier v0.4.0
 	github.com/kubernetes-csi/csi-lib-utils v0.20.0
-	github.com/longhorn/backing-image-manager v1.8.0-rc2
+	github.com/longhorn/backing-image-manager v1.8.0-rc3
 	github.com/longhorn/backupstore v0.0.0-20250115162037-d046737d09dc
 	github.com/longhorn/go-common-libs v0.0.0-20250107022351-ec79818ce8db
 	github.com/longhorn/go-iscsi-helper v0.0.0-20250111093313-7e1930499625
 	github.com/longhorn/go-spdk-helper v0.0.0-20241227145830-6187c6354129
-	github.com/longhorn/longhorn-engine v1.8.0-rc2
-	github.com/longhorn/longhorn-instance-manager v1.8.0-rc2
-	github.com/longhorn/longhorn-share-manager v1.8.0-rc2
+	github.com/longhorn/longhorn-engine v1.8.0-rc3
+	github.com/longhorn/longhorn-instance-manager v1.8.0-rc3
+	github.com/longhorn/longhorn-share-manager v1.8.0-rc3
 	github.com/pkg/errors v0.9.1
 	github.com/prometheus/client_golang v1.20.5
 	github.com/rancher/dynamiclistener v0.6.1
diff --git a/go.sum b/go.sum
index 4de5af4b50..fae4226562 100644
--- a/go.sum
+++ b/go.sum
@@ -151,8 +151,8 @@ github.com/kylelemons/godebug v1.1.0 h1:RPNrshWIDI6G2gRW9EHilWtl7Z6Sb1BR0xunSBf0
 github.com/kylelemons/godebug v1.1.0/go.mod h1:9/0rRGxNHcop5bhtWyNeEfOS8JIWk580+fNqagV/RAw=
 github.com/liggitt/tabwriter v0.0.0-20181228230101-89fcab3d43de h1:9TO3cAIGXtEhnIaL+V+BEER86oLrvS+kWobKpbJuye0=
 github.com/liggitt/tabwriter v0.0.0-20181228230101-89fcab3d43de/go.mod h1:zAbeS9B/r2mtpb6U+EI2rYA5OAXxsYw6wTamcNW+zcE=
-github.com/longhorn/backing-image-manager v1.8.0-rc2 h1:2OzNRUFE5sP8ppp1qBlFaKCfEVGCyvOxFDk2rUqjZHU=
-github.com/longhorn/backing-image-manager v1.8.0-rc2/go.mod h1:9gid57VIPhTvDWgSBfGAJtYtl+XpsREyE6WwUNKn+n0=
+github.com/longhorn/backing-image-manager v1.8.0-rc3 h1:+10FX0kP/lgP4CBPE7N+RW2/ZQDxq9rjO1k8YHyss5Y=
+github.com/longhorn/backing-image-manager v1.8.0-rc3/go.mod h1:tB1B+P3C4qfeSDHb91b5vrp/i4S8HxPad4cjYRk02Ow=
 github.com/longhorn/backupstore v0.0.0-20250115162037-d046737d09dc h1:nhbbDXl5LQzpU/3Yl1LBExEFcKpluyBwX7oRqhyr/ms=
 github.com/longhorn/backupstore v0.0.0-20250115162037-d046737d09dc/go.mod h1:KWKro76mHuneR0Y224btmI62SvhcQcvY1ZXaqZHmNHw=
 github.com/longhorn/go-common-libs v0.0.0-20250107022351-ec79818ce8db h1:aXAcEW8C6b7vxLoQr51FtKCPA4t0jX4xHj5sF97zU2A=
@@ -161,12 +161,12 @@ github.com/longhorn/go-iscsi-helper v0.0.0-20250111093313-7e1930499625 h1:d39A30
 github.com/longhorn/go-iscsi-helper v0.0.0-20250111093313-7e1930499625/go.mod h1:yIm3sGRuYOw/Y3XzRhG5+3FlZBOfrU5EZOavzwL2jVs=
 github.com/longhorn/go-spdk-helper v0.0.0-20241227145830-6187c6354129 h1:yPsm0Lu6wXDH/XRfTqrBiFaIcDduApu3gb38XBX++qI=
 github.com/longhorn/go-spdk-helper v0.0.0-20241227145830-6187c6354129/go.mod h1:gt5O4pBZlkrrQrsEpli+1d6g43clsuMaF/NIhOQ3Oyo=
-github.com/longhorn/longhorn-engine v1.8.0-rc2 h1:soxUV9DAsBtwD2Y+8Za/dLhuBvmxeswec3YIgevYYKc=
-github.com/longhorn/longhorn-engine v1.8.0-rc2/go.mod h1:1Fz703NPKp6OfblSb9YFOWcsGtba0Lj2K0kAZxukssM=
-github.com/longhorn/longhorn-instance-manager v1.8.0-rc2 h1:14ZismarHETPhBPgW0/GmdPoHB5QbWTYjEbHEybi6Ho=
-github.com/longhorn/longhorn-instance-manager v1.8.0-rc2/go.mod h1:yG0wHNLKBvBZ+W2QU2yWDVyLJvqbeUBxxVyKpQqS/Cs=
-github.com/longhorn/longhorn-share-manager v1.8.0-rc2 h1:+BoNAlLY4kRqbtUYhFJoqNYgJ7exqLIrdIwicdA5RfQ=
-github.com/longhorn/longhorn-share-manager v1.8.0-rc2/go.mod h1:txR8ciQEf3xIuFZW0zN7ZlUtvaZq0pIggMGGp4c94rg=
+github.com/longhorn/longhorn-engine v1.8.0-rc3 h1:27/WNpMM09YhEpiHjvcuy4lQI5UU9/F0XsM+oyf97XM=
+github.com/longhorn/longhorn-engine v1.8.0-rc3/go.mod h1:BvJjgPDeCcZmU4kwj11ozte+to7RgFGKGCMC3VfuFgk=
+github.com/longhorn/longhorn-instance-manager v1.8.0-rc3 h1:1RxAyTT5zWXYDETTawwE9hsHPOjq2zszQwVBb6CpH+Y=
+github.com/longhorn/longhorn-instance-manager v1.8.0-rc3/go.mod h1:iD+pHeHB3CoLmbEgxVaS5cjIuKJBuEXyFg1D7iEvhgs=
+github.com/longhorn/longhorn-share-manager v1.8.0-rc3 h1:FP4zfERAScD5VE1j72i/vW/TlTZbxFdHs2yAnT5kSdk=
+github.com/longhorn/longhorn-share-manager v1.8.0-rc3/go.mod h1:FOpswQ9Wi9Zci92gNDTekjTiI6DKAvPIFo+f22afMDw=
 github.com/longhorn/types v0.0.0-20241225162202-00d3a5fd7502 h1:jgw7nosooLe1NQEdCGzM/nEOFzPcurNO+0PDsicc5+A=
 github.com/longhorn/types v0.0.0-20241225162202-00d3a5fd7502/go.mod h1:3jHuVDtpkXQzpnp4prguDBskVRric2kmF8aSPkRJ4jw=
 github.com/mailru/easyjson v0.9.0 h1:PrnmzHw7262yW8sTBwxi1PdJA3Iw/EKBa8psRf7d9a4=
diff --git a/vendor/github.com/longhorn/longhorn-share-manager/pkg/types/types.go b/vendor/github.com/longhorn/longhorn-share-manager/pkg/types/types.go
index 86aa5e080b..d2bf167ebe 100644
--- a/vendor/github.com/longhorn/longhorn-share-manager/pkg/types/types.go
+++ b/vendor/github.com/longhorn/longhorn-share-manager/pkg/types/types.go
@@ -12,11 +12,29 @@ const (
 	DevPath       = "/dev"
 	MapperDevPath = "/dev/mapper"
 
+	// The suffix for dm device name of the encrypted v2 volume.
+	MapperV2VolumeSuffix = "-encrypted"
+
 	ExportPath = "/export"
+
+	DataEngineTypeV1 = "v1"
+	DataEngineTypeV2 = "v2"
 )
 
-func GetVolumeDevicePath(volumeName string, EncryptedDevice bool) string {
+func GetEncryptVolumeName(volume, dataEngine string) string {
+	if dataEngine == DataEngineTypeV2 {
+		return volume + MapperV2VolumeSuffix
+	}
+	return volume
+}
+
+func GetVolumeDevicePath(volumeName, dataEngine string, EncryptedDevice bool) string {
 	if EncryptedDevice {
+		if dataEngine == DataEngineTypeV2 {
+			// v2 volume will use a dm device as default to control IO path when attaching. This dm device will be created with the same name as the volume name.
+			// The encrypted volume will be created with the volume name with "-encrypted" suffix to resolve the naming conflict.
+			return path.Join(MapperDevPath, GetEncryptVolumeName(volumeName, dataEngine))
+		}
 		return path.Join(MapperDevPath, volumeName)
 	}
 	return filepath.Join(DevPath, "longhorn", volumeName)
diff --git a/vendor/modules.txt b/vendor/modules.txt
index 682b7127ef..6d8cacc995 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -221,7 +221,7 @@ github.com/kylelemons/godebug/diff
 # github.com/liggitt/tabwriter v0.0.0-20181228230101-89fcab3d43de
 ## explicit
 github.com/liggitt/tabwriter
-# github.com/longhorn/backing-image-manager v1.8.0-rc2
+# github.com/longhorn/backing-image-manager v1.8.0-rc3
 ## explicit; go 1.23.0
 github.com/longhorn/backing-image-manager/api
 github.com/longhorn/backing-image-manager/pkg/client
@@ -261,21 +261,21 @@ github.com/longhorn/go-iscsi-helper/util
 # github.com/longhorn/go-spdk-helper v0.0.0-20241227145830-6187c6354129
 ## explicit; go 1.22.7
 github.com/longhorn/go-spdk-helper/pkg/types
-# github.com/longhorn/longhorn-engine v1.8.0-rc2
+# github.com/longhorn/longhorn-engine v1.8.0-rc3
 ## explicit; go 1.23.0
 github.com/longhorn/longhorn-engine/pkg/interceptor
 github.com/longhorn/longhorn-engine/pkg/meta
 github.com/longhorn/longhorn-engine/pkg/replica/client
 github.com/longhorn/longhorn-engine/pkg/types
 github.com/longhorn/longhorn-engine/pkg/util
-# github.com/longhorn/longhorn-instance-manager v1.8.0-rc2
+# github.com/longhorn/longhorn-instance-manager v1.8.0-rc3
 ## explicit; go 1.23.0
 github.com/longhorn/longhorn-instance-manager/pkg/api
 github.com/longhorn/longhorn-instance-manager/pkg/client
 github.com/longhorn/longhorn-instance-manager/pkg/meta
 github.com/longhorn/longhorn-instance-manager/pkg/types
 github.com/longhorn/longhorn-instance-manager/pkg/util
-# github.com/longhorn/longhorn-share-manager v1.8.0-rc2
+# github.com/longhorn/longhorn-share-manager v1.8.0-rc3
 ## explicit; go 1.23.0
 github.com/longhorn/longhorn-share-manager/pkg/client
 github.com/longhorn/longhorn-share-manager/pkg/types