device is always present at this stage now

homeassistant/components/esphome/update.py

@@ -61,6 +61,8 @@ async def async_setup_entry(
     if (dashboard := async_get_dashboard(hass)) is None:
         return
     entry_data = DomainData.get(hass).get_entry_data(entry)
+    assert entry_data.device_info is not None
+    device_name = entry_data.device_info.name
     unsubs: list[CALLBACK_TYPE] = []
 
     @callback
@@ -72,13 +74,22 @@ async def async_setup_entry(
         if not entry_data.available or not dashboard.last_update_success:
             return
 
+        # Do not add Dashboard Entity if this device is not known to the ESPHome dashboard.
+        if dashboard.data is None or dashboard.data.get(device_name) is None:
+            return
+
         for unsub in unsubs:
             unsub()
         unsubs.clear()
 
         async_add_entities([ESPHomeDashboardUpdateEntity(entry_data, dashboard)])
 
-    if entry_data.available and dashboard.last_update_success:
+    if (
+        entry_data.available
+        and dashboard.last_update_success
+        and dashboard.data is not None
+        and dashboard.data.get(device_name)
+    ):
         _async_setup_update_entity()
         return
 
@@ -133,10 +144,8 @@ class ESPHomeDashboardUpdateEntity(
             self._attr_supported_features = NO_FEATURES
         self._attr_installed_version = device_info.esphome_version
         device = coordinator.data.get(device_info.name)
-        if device is None:
-            self._attr_latest_version = None
-        else:
-            self._attr_latest_version = device["current_version"]
+        assert device is not None
+        self._attr_latest_version = device["current_version"]
 
     @callback
     def _handle_coordinator_update(self) -> None:

tests/components/esphome/test_update.py

@@ -31,7 +31,6 @@ from homeassistant.const import (
     STATE_OFF,
     STATE_ON,
     STATE_UNAVAILABLE,
-    STATE_UNKNOWN,
 )
 from homeassistant.core import HomeAssistant
 from homeassistant.exceptions import HomeAssistantError
@@ -83,11 +82,6 @@ def stub_reconnect():
                 "supported_features": 0,
             },
         ),
-        (
-            [],
-            STATE_UNKNOWN,  # dashboard is available but device is unknown
-            {"supported_features": 0},
-        ),
     ],
 )
 async def test_update_entity(
@@ -408,11 +402,7 @@ async def test_update_becomes_available_at_runtime(
     )
     await hass.async_block_till_done()
     state = hass.states.get("update.test_firmware")
-    assert state is not None
-    features = state.attributes[ATTR_SUPPORTED_FEATURES]
-    # There are no devices on the dashboard so no
-    # way to tell the version so install is disabled
-    assert features is UpdateEntityFeature(0)
+    assert state is None
 
     # A device gets added to the dashboard
     mock_dashboard["configured"] = [
@@ -433,6 +423,41 @@ async def test_update_becomes_available_at_runtime(
     assert features is UpdateEntityFeature.INSTALL
 
 
+async def test_update_entity_not_present_with_dashboard_but_unknown_device(
+    hass: HomeAssistant,
+    mock_client: APIClient,
+    mock_esphome_device: Callable[
+        [APIClient, list[EntityInfo], list[UserService], list[EntityState]],
+        Awaitable[MockESPHomeDevice],
+    ],
+    mock_dashboard: dict[str, Any],
+) -> None:
+    """Test ESPHome update entity does not get created if the device is unknown to the dashboard."""
+    await mock_esphome_device(
+        mock_client=mock_client,
+        entity_info=[],
+        user_service=[],
+        states=[],
+    )
+
+    mock_dashboard["configured"] = [
+        {
+            "name": "other-test",
+            "current_version": "2023.2.0-dev",
+            "configuration": "other-test.yaml",
+        }
+    ]
+
+    state = hass.states.get("update.test_firmware")
+    assert state is None
+
+    await async_get_dashboard(hass).async_refresh()
+    await hass.async_block_till_done()
+
+    state = hass.states.get("update.none_firmware")
+    assert state is None
+
+
 async def test_generic_device_update_entity(
     hass: HomeAssistant,
     mock_client: APIClient,