diff --git a/awx/main/management/commands/inventory_import.py b/awx/main/management/commands/inventory_import.py
index 8150936054..582af9d03b 100644
--- a/awx/main/management/commands/inventory_import.py
+++ b/awx/main/management/commands/inventory_import.py
@@ -458,12 +458,19 @@ class Command(BaseCommand):
         # TODO: We disable variable overwrite here in case user-defined inventory variables get
         # mangled. But we still need to figure out a better way of processing multiple inventory
         # update variables mixing with each other.
-        all_obj = self.inventory
-        db_variables = all_obj.variables_dict
-        db_variables.update(self.all_group.variables)
-        if db_variables != all_obj.variables_dict:
-            all_obj.variables = json.dumps(db_variables)
-            all_obj.save(update_fields=['variables'])
+        # issue for this: https://github.com/ansible/awx/issues/11623
+
+        if self.inventory.kind == 'constructed' and self.inventory_source.overwrite_vars:
+            # NOTE: we had to add a exception case to not merge variables
+            # to make constructed inventory coherent
+            db_variables = self.all_group.variables
+        else:
+            db_variables = self.inventory.variables_dict
+            db_variables.update(self.all_group.variables)
+
+        if db_variables != self.inventory.variables_dict:
+            self.inventory.variables = json.dumps(db_variables)
+            self.inventory.save(update_fields=['variables'])
             logger.debug('Inventory variables updated from "all" group')
         else:
             logger.debug('Inventory variables unmodified')
@@ -522,16 +529,32 @@ class Command(BaseCommand):
     def _update_db_host_from_mem_host(self, db_host, mem_host):
         # Update host variables.
         db_variables = db_host.variables_dict
-        if self.overwrite_vars:
-            db_variables = mem_host.variables
-        else:
-            db_variables.update(mem_host.variables)
+        mem_variables = mem_host.variables
         update_fields = []
+
+        # Update host instance_id.
+        instance_id = self._get_instance_id(mem_variables)
+        if instance_id != db_host.instance_id:
+            old_instance_id = db_host.instance_id
+            db_host.instance_id = instance_id
+            update_fields.append('instance_id')
+
+        if self.inventory.kind == 'constructed':
+            # remote towervars so the constructed hosts do not have extra variables
+            for prefix in ('host', 'tower'):
+                for var in ('remote_{}_enabled', 'remote_{}_id'):
+                    mem_variables.pop(var.format(prefix), None)
+
+        if self.overwrite_vars:
+            db_variables = mem_variables
+        else:
+            db_variables.update(mem_variables)
+
         if db_variables != db_host.variables_dict:
             db_host.variables = json.dumps(db_variables)
             update_fields.append('variables')
         # Update host enabled flag.
-        enabled = self._get_enabled(mem_host.variables)
+        enabled = self._get_enabled(mem_variables)
         if enabled is not None and db_host.enabled != enabled:
             db_host.enabled = enabled
             update_fields.append('enabled')
@@ -540,12 +563,6 @@ class Command(BaseCommand):
             old_name = db_host.name
             db_host.name = mem_host.name
             update_fields.append('name')
-        # Update host instance_id.
-        instance_id = self._get_instance_id(mem_host.variables)
-        if instance_id != db_host.instance_id:
-            old_instance_id = db_host.instance_id
-            db_host.instance_id = instance_id
-            update_fields.append('instance_id')
         # Update host and display message(s) on what changed.
         if update_fields:
             db_host.save(update_fields=update_fields)
diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index 6bc03190a2..a4ddaabafd 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -458,7 +458,9 @@ class Inventory(CommonModelNameNotUnique, ResourceMixin, RelatedJobsMixin):
         """
         if self.kind == 'constructed':
             if not self.inventory_sources.exists():
-                self.inventory_sources.create(source='constructed', name=f'Auto-created source for: {self.name}'[:512], overwrite=True, update_on_launch=True)
+                self.inventory_sources.create(
+                    source='constructed', name=f'Auto-created source for: {self.name}'[:512], overwrite=True, overwrite_vars=True, update_on_launch=True
+                )
 
     def save(self, *args, **kwargs):
         self._update_host_smart_inventory_memeberships()