diff --git a/bundle/config/mutator/override_compute.go b/bundle/config/mutator/override_compute.go
index 4804e6a3a..e68538861 100644
--- a/bundle/config/mutator/override_compute.go
+++ b/bundle/config/mutator/override_compute.go
@@ -6,6 +6,7 @@ import (
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/config/resources"
+	"github.com/databricks/cli/libs/cmdio"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/env"
 )
@@ -43,17 +44,18 @@ func (m *overrideCompute) Apply(ctx context.Context, b *bundle.Bundle) diag.Diag
 	if b.Config.Bundle.Mode == config.Production {
 		if b.Config.Bundle.ClusterId != "" {
 			// Overriding compute via a command-line flag for production works, but is not recommended.
-			diags = diags.Extend(diag.Warningf("overriding compute for a target that uses 'mode: production' is not recommended"))
-		}
-		if env.Get(ctx, "DATABRICKS_CLUSTER_ID") != "" {
-			// The DATABRICKS_CLUSTER_ID may be set by accident when doing a production deploy.
-			// Overriding the cluster in production is almost always a mistake since customers
-			// want consistency in production and not compute that is different each deploy.
-			// For this reason we log a warning and ignore the environment variable.
-			return diag.Warningf("the DATABRICKS_CLUSTER_ID variable is set but is ignored since the current target uses 'mode: production'")
+			diags = diags.Extend(diag.Warningf("Overriding compute for a target that uses 'mode: production' is not recommended"))
 		}
 	}
 	if v := env.Get(ctx, "DATABRICKS_CLUSTER_ID"); v != "" {
+		// For historical reasons, we allow setting the cluster ID via the DATABRICKS_CLUSTER_ID
+		// when development mode is used. Sometimes, this is done by accident, so we log an info message.
+		if b.Config.Bundle.Mode == config.Development {
+			cmdio.LogString(ctx, "Overriding compute because DATABRICKS_CLUSTER_ID is set. It is recommended to use --cluster-id instead, which works in any target mode.")
+		} else {
+			// We don't allow using DATABRICKS_CLUSTER_ID in any other mode, it's too error-prone.
+			return diag.Warningf("The DATABRICKS_CLUSTER_ID variable is set but is ignored since the current target does not use 'mode: development'")
+		}
 		b.Config.Bundle.ClusterId = v
 	}
 
diff --git a/bundle/config/mutator/override_compute_test.go b/bundle/config/mutator/override_compute_test.go
index 47f9af964..717cea9f4 100644
--- a/bundle/config/mutator/override_compute_test.go
+++ b/bundle/config/mutator/override_compute_test.go
@@ -62,7 +62,7 @@ func TestOverrideComputeModeDevelopment(t *testing.T) {
 	assert.Empty(t, b.Config.Resources.Jobs["job1"].Tasks[3].JobClusterKey)
 }
 
-func TestOverrideComputeModeDefault(t *testing.T) {
+func TestOverrideComputeModeDefaultIgnoresVariable(t *testing.T) {
 	t.Setenv("DATABRICKS_CLUSTER_ID", "newClusterId")
 	b := &bundle.Bundle{
 		Config: config.Root{
@@ -89,9 +89,9 @@ func TestOverrideComputeModeDefault(t *testing.T) {
 
 	m := mutator.OverrideCompute()
 	diags := bundle.Apply(context.Background(), b, m)
-	require.Empty(t, diags)
-	assert.Equal(t, "newClusterId", b.Config.Resources.Jobs["job1"].Tasks[0].ExistingClusterId)
-	assert.Equal(t, "newClusterId", b.Config.Resources.Jobs["job1"].Tasks[1].ExistingClusterId)
+	require.Len(t, diags, 1)
+	assert.Equal(t, "The DATABRICKS_CLUSTER_ID variable is set but is ignored since the current target does not use 'mode: development'", diags[0].Summary)
+	assert.Equal(t, "cluster2", b.Config.Resources.Jobs["job1"].Tasks[1].ExistingClusterId)
 }
 
 func TestOverrideComputePipelineTask(t *testing.T) {
@@ -172,7 +172,7 @@ func TestOverrideComputeModeProduction(t *testing.T) {
 	m := mutator.OverrideCompute()
 	diags := bundle.Apply(context.Background(), b, m)
 	require.Len(t, diags, 1)
-	assert.Equal(t, "overriding compute for a target that uses 'mode: production' is not recommended", diags[0].Summary)
+	assert.Equal(t, "Overriding compute for a target that uses 'mode: production' is not recommended", diags[0].Summary)
 	assert.Equal(t, "newClusterID", b.Config.Resources.Jobs["job1"].Tasks[0].ExistingClusterId)
 }
 
@@ -204,6 +204,6 @@ func TestOverrideComputeModeProductionIgnoresVariable(t *testing.T) {
 	m := mutator.OverrideCompute()
 	diags := bundle.Apply(context.Background(), b, m)
 	require.Len(t, diags, 1)
-	assert.Equal(t, "the DATABRICKS_CLUSTER_ID variable is set but is ignored since the current target uses 'mode: production'", diags[0].Summary)
+	assert.Equal(t, "The DATABRICKS_CLUSTER_ID variable is set but is ignored since the current target does not use 'mode: development'", diags[0].Summary)
 	assert.Equal(t, "cluster2", b.Config.Resources.Jobs["job1"].Tasks[1].ExistingClusterId)
 }