diff --git a/app/client/src/git/artifact-helpers/application/applicationStatusTransformer.ts b/app/client/src/git/artifact-helpers/application/applicationStatusTransformer.ts
index b803cddfea..afa7d9b6ab 100644
--- a/app/client/src/git/artifact-helpers/application/applicationStatusTransformer.ts
+++ b/app/client/src/git/artifact-helpers/application/applicationStatusTransformer.ts
@@ -272,28 +272,14 @@ function statusThemeTransformer(status: FetchStatusResponseData) {
   return tree;
 }
 
-function statusPackagesTransformer(status: FetchStatusResponseData) {
-  const {
-    modifiedModuleInstances = 0,
-    modifiedModules = 0,
-    modifiedPackages = 0,
-  } = status;
+function statusModuleInstancesTransformer(status: FetchStatusResponseData) {
+  const { modifiedModuleInstances = 0, modifiedSourceModules = 0 } = status;
   const tree = [] as StatusTreeStruct[];
 
-  if (modifiedPackages > 0) {
+  if (modifiedSourceModules > 0) {
     tree.push(
       createTreeNode({
-        subject: `${modifiedPackages} package${modifiedPackages > 1 ? "s" : ""}`,
-        verb: "modified",
-        type: "package",
-      }),
-    );
-  }
-
-  if (modifiedModules > 0) {
-    tree.push(
-      createTreeNode({
-        subject: `${modifiedModules} module${modifiedModules > 1 ? "s" : ""}`,
+        subject: `${modifiedSourceModules} source module${modifiedSourceModules > 1 ? "s" : ""}`,
         verb: "modified",
         type: "module",
       }),
@@ -323,7 +309,7 @@ export default function applicationStatusTransformer(
     ...statusJsLibTransformer(status),
     ...statusSettingsTransformer(status),
     ...statusThemeTransformer(status),
-    ...statusPackagesTransformer(status),
+    ...statusModuleInstancesTransformer(status),
   ] as StatusTreeStruct[];
 
   return tree;
diff --git a/app/client/src/git/components/QuickActions/BranchButton.tsx b/app/client/src/git/components/QuickActions/BranchButton.tsx
index 9ed0d7007a..2124339a87 100644
--- a/app/client/src/git/components/QuickActions/BranchButton.tsx
+++ b/app/client/src/git/components/QuickActions/BranchButton.tsx
@@ -51,7 +51,7 @@ export default function BranchButton({
   isAutocommitPolling = false,
   isBranchPopupOpen = false,
   isProtectedMode = false,
-  isStatusClean = false,
+  isStatusClean = true,
   isTriggerAutocommitLoading = false,
   toggleBranchPopup = noop,
 }: BranchButtonProps) {
diff --git a/app/client/src/git/components/QuickActions/QuickActionsView.tsx b/app/client/src/git/components/QuickActions/QuickActionsView.tsx
index 4b964a9926..9a11ca5de4 100644
--- a/app/client/src/git/components/QuickActions/QuickActionsView.tsx
+++ b/app/client/src/git/components/QuickActions/QuickActionsView.tsx
@@ -64,7 +64,7 @@ function QuickActionsView({
   isProtectedMode = false,
   isPullFailing = false,
   isPullLoading = false,
-  isStatusClean = false,
+  isStatusClean = true,
   isTriggerAutocommitLoading = false,
   pull = noop,
   statusBehindCount = 0,
diff --git a/app/client/src/git/components/QuickActions/hooks/useStatusChangeCount.ts b/app/client/src/git/components/QuickActions/hooks/useStatusChangeCount.ts
index bcc59083c7..7011035242 100644
--- a/app/client/src/git/components/QuickActions/hooks/useStatusChangeCount.ts
+++ b/app/client/src/git/components/QuickActions/hooks/useStatusChangeCount.ts
@@ -8,9 +8,10 @@ export const calcStatusChangeCount = (status: FetchStatusResponseData) => {
     modifiedDatasources = 0,
     modifiedJSLibs = 0,
     modifiedJSObjects = 0,
-    modifiedModules = 0,
+    modifiedModuleInstances = 0,
     modifiedPages = 0,
     modifiedQueries = 0,
+    modifiedSourceModules = 0,
   } = status || {};
   const themeCount = modified.includes("theme.json") ? 1 : 0;
   const settingsCount = modified.includes("application.json") ? 1 : 0;
@@ -20,10 +21,11 @@ export const calcStatusChangeCount = (status: FetchStatusResponseData) => {
     modifiedDatasources +
     modifiedJSLibs +
     modifiedJSObjects +
-    modifiedModules +
     modifiedPages +
     modifiedQueries +
     themeCount +
+    modifiedSourceModules +
+    modifiedModuleInstances +
     settingsCount
   );
 };
diff --git a/app/client/src/git/components/QuickActions/index.tsx b/app/client/src/git/components/QuickActions/index.tsx
index af15511607..9224823d80 100644
--- a/app/client/src/git/components/QuickActions/index.tsx
+++ b/app/client/src/git/components/QuickActions/index.tsx
@@ -31,7 +31,7 @@ function QuickActions() {
   const { currentBranch, isBranchPopupOpen, toggleBranchPopup } = useBranches();
 
   const isPullFailing = !!pullError;
-  const isStatusClean = status?.isClean ?? false;
+  const isStatusClean = status?.isClean ?? true;
   const statusBehindCount = status?.behindCount ?? 0;
   const statusChangeCount = useStatusChangeCount(status);
 
diff --git a/app/client/src/git/hooks/useDiscard.ts b/app/client/src/git/hooks/useDiscard.ts
index 19818cb7f8..23edfd3c99 100644
--- a/app/client/src/git/hooks/useDiscard.ts
+++ b/app/client/src/git/hooks/useDiscard.ts
@@ -6,16 +6,17 @@ import { useDispatch } from "react-redux";
 import useArtifactSelector from "./useArtifactSelector";
 
 export default function useDiscard() {
-  const { artifactDef } = useGitContext();
+  const { artifact, artifactDef } = useGitContext();
+  const artifactId = artifact?.id;
   const dispatch = useDispatch();
 
   const discardState = useArtifactSelector(selectDiscardState);
 
   const discard = useCallback(() => {
-    if (artifactDef) {
-      dispatch(gitArtifactActions.discardInit({ artifactDef }));
+    if (artifactDef && artifactId) {
+      dispatch(gitArtifactActions.discardInit({ artifactDef, artifactId }));
     }
-  }, [artifactDef, dispatch]);
+  }, [artifactDef, artifactId, dispatch]);
 
   const clearDiscardError = useCallback(() => {
     if (artifactDef) {
diff --git a/app/client/src/git/requests/fetchStatusRequest.types.ts b/app/client/src/git/requests/fetchStatusRequest.types.ts
index feb064d361..657e94b3f7 100644
--- a/app/client/src/git/requests/fetchStatusRequest.types.ts
+++ b/app/client/src/git/requests/fetchStatusRequest.types.ts
@@ -24,11 +24,10 @@ export interface FetchStatusResponseData {
   modifiedDatasources: number;
   modifiedJSLibs: number;
   modifiedJSObjects: number;
-  modifiedPackages: number;
-  modifiedModuleInstances: number;
-  modifiedModules: number;
   modifiedPages: number;
   modifiedQueries: number;
+  modifiedSourceModules: number;
+  modifiedModuleInstances: number;
   pagesAdded: string[];
   pagesModified: string[];
   pagesRemoved: string[];
diff --git a/app/client/src/git/sagas/discardSaga.ts b/app/client/src/git/sagas/discardSaga.ts
index 7e3cdd4a37..c7e5e3c766 100644
--- a/app/client/src/git/sagas/discardSaga.ts
+++ b/app/client/src/git/sagas/discardSaga.ts
@@ -4,19 +4,22 @@ import { builderURL } from "ee/RouteBuilder";
 import { createMessage, DISCARD_SUCCESS } from "ee/constants/messages";
 import discardRequest from "git/requests/discardRequest";
 import type { DiscardResponse } from "git/requests/discardRequest.types";
+import type { DiscardInitPayload } from "git/store/actions/discardActions";
 import { gitArtifactActions } from "git/store/gitArtifactSlice";
 import type { GitArtifactPayloadAction } from "git/store/types";
 import log from "loglevel";
 import { call, delay, put } from "redux-saga/effects";
 import { validateResponse } from "sagas/ErrorSagas";
 
-export default function* discardSaga(action: GitArtifactPayloadAction) {
-  const { artifactDef } = action.payload;
+export default function* discardSaga(
+  action: GitArtifactPayloadAction<DiscardInitPayload>,
+) {
+  const { artifactDef, artifactId } = action.payload;
 
   let response: DiscardResponse | undefined;
 
   try {
-    response = yield call(discardRequest, artifactDef.baseArtifactId);
+    response = yield call(discardRequest, artifactId);
     const isValidResponse: boolean = yield validateResponse(response);
 
     if (response && isValidResponse) {
diff --git a/app/client/src/git/store/actions/discardActions.ts b/app/client/src/git/store/actions/discardActions.ts
index 0f514cd0e5..67d54e349d 100644
--- a/app/client/src/git/store/actions/discardActions.ts
+++ b/app/client/src/git/store/actions/discardActions.ts
@@ -1,12 +1,21 @@
 import { createArtifactAction } from "../helpers/createArtifactAction";
-import type { GitArtifactErrorPayloadAction } from "../types";
+import type {
+  GitArtifactBasePayload,
+  GitArtifactErrorPayloadAction,
+} from "../types";
 
-export const discardInitAction = createArtifactAction((state) => {
-  state.apiResponses.discard.loading = true;
-  state.apiResponses.discard.error = null;
+export interface DiscardInitPayload extends GitArtifactBasePayload {
+  artifactId: string;
+}
 
-  return state;
-});
+export const discardInitAction = createArtifactAction<DiscardInitPayload>(
+  (state) => {
+    state.apiResponses.discard.loading = true;
+    state.apiResponses.discard.error = null;
+
+    return state;
+  },
+);
 
 export const discardSuccessAction = createArtifactAction((state) => {
   state.apiResponses.discard.loading = false;
diff --git a/app/client/src/pages/Editor/gitSync/components/GitChangesList/StaticChange.tsx b/app/client/src/pages/Editor/gitSync/components/GitChangesList/StaticChange.tsx
index a0dbc1228e..14254403c8 100644
--- a/app/client/src/pages/Editor/gitSync/components/GitChangesList/StaticChange.tsx
+++ b/app/client/src/pages/Editor/gitSync/components/GitChangesList/StaticChange.tsx
@@ -15,7 +15,6 @@ const TitleText = styled(Text)`
 export enum StaticChangeKind {
   SETTINGS = "SETTINGS",
   THEME = "THEME",
-  PACKAGES = "PACKAGES",
   MODULES = "MODULES",
   REMOTE_AHEAD = "REMOTE_AHEAD",
   REMOTE_BEHIND = "REMOTE_BEHIND",
@@ -56,17 +55,10 @@ const allStaticChangeDefs: Record<
     message: "Theme modified",
     iconName: "sip-line",
   }),
-  [StaticChangeKind.PACKAGES]: (status: GitStatusData) => ({
-    condition: (status.modifiedPackages ?? 0) > 0,
-    message: `${status.modifiedPackages ?? 0} ${
-      (status.modifiedPackages ?? 0) > 0 ? "packages" : "package"
-    } modified`,
-    iconName: "package",
-  }),
   [StaticChangeKind.MODULES]: (status: GitStatusData) => ({
-    condition: (status.modifiedModules ?? 0) > 0,
-    message: `${status.modifiedModules ?? 0} ${
-      (status.modifiedModules ?? 0) > 0 ? "modules" : "module"
+    condition: (status.modifiedSourceModules ?? 0) > 0,
+    message: `${status.modifiedSourceModules ?? 0} ${
+      (status.modifiedSourceModules ?? 0) > 0 ? "modules" : "module"
     } modified`,
     iconName: "package",
   }),
diff --git a/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.test.tsx b/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.test.tsx
index f87d3a095b..2b756d7c26 100644
--- a/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.test.tsx
+++ b/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.test.tsx
@@ -342,39 +342,10 @@ describe("GitChangesList", () => {
     expect(getByTestId("t--status-change-THEME")).toBeInTheDocument();
   });
 
-  it("should render Package related changes", () => {
-    const store = getMockStore({
-      gitStatus: {
-        modifiedPackages: 2,
-      },
-    });
-
-    const { getByTestId, queryByTestId } = render(
-      <Provider store={store}>
-        <GitChangesList />
-      </Provider>,
-    );
-
-    expect(
-      queryByTestId("t--status-change-DATASOURCES"),
-    ).not.toBeInTheDocument();
-    expect(queryByTestId("t--status-change-JSLIBS")).not.toBeInTheDocument();
-    expect(
-      queryByTestId("t--status-change-REMOTE_AHEAD"),
-    ).not.toBeInTheDocument();
-    expect(
-      queryByTestId("t--status-change-REMOTE_BEHIND"),
-    ).not.toBeInTheDocument();
-    expect(getByTestId("t--status-change-PACKAGES")).toBeInTheDocument();
-    expect(queryByTestId("t--status-change-MODULES")).not.toBeInTheDocument();
-    expect(queryByTestId("t--status-change-SETTINGS")).not.toBeInTheDocument();
-    expect(queryByTestId("t--status-change-THEME")).not.toBeInTheDocument();
-  });
-
   it("should render Module related changes", () => {
     const store = getMockStore({
       gitStatus: {
-        modifiedModules: 2,
+        modifiedSourceModules: 2,
       },
     });
 
diff --git a/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.tsx b/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.tsx
index bbb0ee34c5..f850a6ea57 100644
--- a/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.tsx
+++ b/app/client/src/pages/Editor/gitSync/components/GitChangesList/index.tsx
@@ -50,7 +50,6 @@ export default function GitChangesList() {
       <ExpandableChange kind={ExpandableChangeKind.JSLIBS} status={status} />
       <StaticChange kind={StaticChangeKind.SETTINGS} status={status} />
       <StaticChange kind={StaticChangeKind.THEME} status={status} />
-      <StaticChange kind={StaticChangeKind.PACKAGES} status={status} />
       <StaticChange kind={StaticChangeKind.MODULES} status={status} />
       {status?.migrationMessage ? (
         <CalloutContainer>
diff --git a/app/client/src/reducers/uiReducers/gitSyncReducer.ts b/app/client/src/reducers/uiReducers/gitSyncReducer.ts
index 116f04cdec..dfef740a63 100644
--- a/app/client/src/reducers/uiReducers/gitSyncReducer.ts
+++ b/app/client/src/reducers/uiReducers/gitSyncReducer.ts
@@ -754,8 +754,7 @@ export interface GitStatusData {
   modifiedJSObjects: number;
   modifiedQueries: number;
   modifiedJSLibs: number;
-  modifiedPackages?: number;
-  modifiedModules?: number;
+  modifiedSourceModules?: number;
   modifiedModuleInstances?: number;
 }
 
diff --git a/app/client/src/selectors/gitSyncSelectors.tsx b/app/client/src/selectors/gitSyncSelectors.tsx
index bf3b009667..e7ed0fc869 100644
--- a/app/client/src/selectors/gitSyncSelectors.tsx
+++ b/app/client/src/selectors/gitSyncSelectors.tsx
@@ -146,10 +146,10 @@ export const getCountOfChangesToCommit = (state: AppState) => {
     modifiedDatasources = 0,
     modifiedJSLibs = 0,
     modifiedJSObjects = 0,
-    modifiedModules = 0,
-    modifiedPackages = 0,
+    modifiedModuleInstances = 0,
     modifiedPages = 0,
     modifiedQueries = 0,
+    modifiedSourceModules = 0,
   } = gitStatus || {};
   const themeCount = modified.includes("theme.json") ? 1 : 0;
   const settingsCount = modified.includes("application.json") ? 1 : 0;
@@ -159,8 +159,8 @@ export const getCountOfChangesToCommit = (state: AppState) => {
     modifiedDatasources +
     modifiedJSLibs +
     modifiedJSObjects +
-    modifiedModules +
-    modifiedPackages +
+    modifiedSourceModules +
+    modifiedModuleInstances +
     modifiedPages +
     modifiedQueries +
     themeCount +