Hi @0xaravindh, I've been on vacation without access to a computer so its taken a bit of time for me to respond with an example.

So, for our case, we use the annotations to decide if the fleet has a TTL set or not, and use that to set the fleet size. So this is the snippet we are using at least:

const (
	DEFAULT_TTL_ENABLED  = false
	DEFAULT_TTL_SECONDS  = 60
	DEFAULT_BUFFER_TYPE  = "Percentage"
	DEFAULT_STEP         = 10
	DEFAULT_MIN_REPLICAS = 20
	DEFAULT_MAX_REPLICAS = 100
)

// getFleetSize retrieves the size of the fleet based on the FleetAutoscaleRequest.
func getFleetSize(req *autoscalingv1.FleetAutoscaleRequest) autoscalingv1.FleetAutoscaleResponse {
	fleet := fleetCache.get(req.Labels)
	if fleet == nil {
		logrus.WithField("fleet", req.Labels).Debug("Fleet not found in cache, returning default response")
		return autoscalingv1.FleetAutoscaleResponse{
			Scale:    false,
			Replicas: 0,
			UID:      req.UID,
		}
	}

	ttlEnabled := DEFAULT_TTL_ENABLED
	if value, ok := req.Annotations["autoscaling.ttl_enabled"]; ok {
		if parsed, err := strconv.ParseBool(value); err == nil {
			ttlEnabled = parsed
		}
	}

	if ttlEnabled {
		ttlSeconds := DEFAULT_TTL_SECONDS
		if value, ok := req.Annotations["autoscaling.ttl_seconds"]; ok {
			if parsed, err := strconv.Atoi(value); err == nil {
				ttlSeconds = parsed
			}
		}
		ttlExpiration := time.Duration(ttlSeconds) * time.Second

		if fleet.lastUpdatedTime.Add(ttlExpiration).Before(time.Now()) {
			// Fleet is expired, set the size to 0
			return autoscalingv1.FleetAutoscaleResponse{
				Scale:    false,
				Replicas: 0,
				UID:      req.UID,
			}
		}

		bufferType := DEFAULT_BUFFER_TYPE
		if value, ok := req.Annotations["autoscaling.buffer_type"]; ok {
			bufferType = value
		}

		size := 0
		switch bufferType {
			case "Percentage":
				size = percentageScale(req.Annotations)
			case "Fixed":
				size = fixedScale(req.Annotations)
			default:
				logrus.WithField("bufferType", bufferType).Error("Unknown buffer type")
				size = 0
		}
	}

	return autoscalingv1.FleetAutoscaleResponse{
		Scale:    req.Status.Replicas != size,
		Replicas: size,
		UID:      req.UID,
	}
}

As for how to add a good e2e test; I would do exactly as you described there. Having the annotations drive the logic if it is enabled, otherwise use the old way. (Which is what we are doing in our case)

end to end test: Webhook autoscaler to with fleet metadata #4117

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