static void device_release_watchdog_func(struct work_struct *work)
 {
-       struct hl_device_reset_work *device_release_watchdog_work =
-                               container_of(work, struct hl_device_reset_work, reset_work.work);
-       struct hl_device *hdev = device_release_watchdog_work->hdev;
+       struct hl_device_reset_work *watchdog_work =
+                       container_of(work, struct hl_device_reset_work, reset_work.work);
+       struct hl_device *hdev = watchdog_work->hdev;
        u32 flags;
 
-       dev_dbg(hdev->dev, "Device wasn't released in time. Initiate device reset.\n");
+       dev_dbg(hdev->dev, "Device wasn't released in time. Initiate hard-reset.\n");
 
-       flags = device_release_watchdog_work->flags | HL_DRV_RESET_FROM_WD_THR;
+       flags = watchdog_work->flags | HL_DRV_RESET_HARD | HL_DRV_RESET_FROM_WD_THR;
 
        hl_device_reset(hdev, flags);
 }
 
                /* Cancel the device release watchdog work if required.
                 * In case of reset-upon-device-release while the release watchdog work is
-                * scheduled, do hard-reset instead of compute-reset.
+                * scheduled due to a hard-reset, do hard-reset instead of compute-reset.
                 */
                if ((hard_reset || from_dev_release) && hdev->reset_info.watchdog_active) {
+                       struct hl_device_reset_work *watchdog_work =
+                                       &hdev->device_release_watchdog_work;
+
                        hdev->reset_info.watchdog_active = 0;
                        if (!from_watchdog_thread)
-                               cancel_delayed_work_sync(
-                                               &hdev->device_release_watchdog_work.reset_work);
+                               cancel_delayed_work_sync(&watchdog_work->reset_work);
 
-                       if (from_dev_release) {
+                       if (from_dev_release && (watchdog_work->flags & HL_DRV_RESET_HARD)) {
                                hdev->reset_info.in_compute_reset = 0;
                                flags |= HL_DRV_RESET_HARD;
                                flags &= ~HL_DRV_RESET_DEV_RELEASE;
 {
        struct hl_ctx *ctx = NULL;
 
-       /* Device release watchdog is only for hard reset */
-       if (!(flags & HL_DRV_RESET_HARD) && hdev->asic_prop.allow_inference_soft_reset)
-               goto device_reset;
-
        /* F/W reset cannot be postponed */
        if (flags & HL_DRV_RESET_BYPASS_REQ_TO_FW)
                goto device_reset;
                goto out;
 
        hdev->device_release_watchdog_work.flags = flags;
-       dev_dbg(hdev->dev, "Device is going to be reset in %u sec unless being released\n",
+       dev_dbg(hdev->dev, "Device is going to be hard-reset in %u sec unless being released\n",
                hdev->device_release_watchdog_timeout_sec);
        schedule_delayed_work(&hdev->device_release_watchdog_work.reset_work,
                                msecs_to_jiffies(hdev->device_release_watchdog_timeout_sec * 1000));