diff --git a/code/renderers/vue3/src/decorateStory.ts b/code/renderers/vue3/src/decorateStory.ts
index 3955eba07644..df9f6bb16d6c 100644
--- a/code/renderers/vue3/src/decorateStory.ts
+++ b/code/renderers/vue3/src/decorateStory.ts
@@ -1,9 +1,7 @@
-import type { ConcreteComponent, Component, ComponentOptions } from 'vue';
+import type { Component, ComponentOptions, ConcreteComponent } from 'vue';
 import { h } from 'vue';
-import type { DecoratorFunction, StoryContext, LegacyStoryFn, Args } from '@storybook/types';
+import type { DecoratorFunction, LegacyStoryFn, StoryContext } from '@storybook/types';
 import { sanitizeStoryContextUpdate } from '@storybook/preview-api';
-// eslint-disable-next-line import/no-extraneous-dependencies
-import { looseEqual } from '@vue/shared';
 import type { VueRenderer } from './types';
 
 /*
@@ -45,7 +43,6 @@ export function decorateStory(
   storyFn: LegacyStoryFn<VueRenderer>,
   decorators: DecoratorFunction<VueRenderer>[]
 ): LegacyStoryFn<VueRenderer> {
-  let updatedArgs: Args;
   return decorators.reduce(
     (decorated: LegacyStoryFn<VueRenderer>, decorator) => (context: StoryContext<VueRenderer>) => {
       let story: VueRenderer['storyResult'] | undefined;
@@ -55,20 +52,16 @@ export function decorateStory(
           ...context,
           ...sanitizeStoryContextUpdate(update),
         });
-
-        if (update && update.args && !looseEqual(update.args, context.args))
-          updatedArgs ??= update.args;
         return story;
       }, context);
 
-      context.args = updatedArgs ?? context.args;
       if (!story) story = decorated(context);
 
       if (decoratedStory === story) {
         return story;
       }
 
-      const innerStory = () => h(story!, context.args);
+      const innerStory = () => h(story!);
       return prepare(decoratedStory, innerStory) as VueRenderer['storyResult'];
     },
     (context) => prepare(storyFn(context)) as LegacyStoryFn<VueRenderer>
diff --git a/code/renderers/vue3/src/render.ts b/code/renderers/vue3/src/render.ts
index 0c3102957a9c..552438220600 100644
--- a/code/renderers/vue3/src/render.ts
+++ b/code/renderers/vue3/src/render.ts
@@ -1,18 +1,10 @@
 /* eslint-disable no-param-reassign */
-import type { App, ConcreteComponent } from 'vue';
+import type { App } from 'vue';
 import { createApp, h, reactive, isVNode, isReactive } from 'vue';
-import type { RenderContext, ArgsStoryFn } from '@storybook/types';
+import type { ArgsStoryFn, RenderContext } from '@storybook/types';
 import type { Args, StoryContext } from '@storybook/csf';
 
-import type { VueRenderer, StoryFnVueReturnType, StoryID } from './types';
-
-const slotsMap = new Map<
-  StoryID,
-  {
-    component?: Omit<ConcreteComponent<any>, 'props'>;
-    reactiveSlots?: Args;
-  }
->();
+import type { StoryFnVueReturnType, StoryID, VueRenderer } from './types';
 
 export const render: ArgsStoryFn<VueRenderer> = (props, context) => {
   const { id, component: Component } = context;
@@ -22,7 +14,7 @@ export const render: ArgsStoryFn<VueRenderer> = (props, context) => {
     );
   }
 
-  return h(Component, props, createOrUpdateSlots(context));
+  return () => h(Component, props, generateSlots(context));
 };
 
 // set of setup functions that will be called when story is created
@@ -82,7 +74,9 @@ export function renderToCanvas(
       map.set(canvasElement, appState);
 
       return () => {
-        return h(rootElement, appState.reactiveArgs);
+        // not passing args here as props
+        // treat the rootElement as a component without props
+        return h(rootElement);
       };
     },
   });
@@ -157,15 +151,3 @@ function teardown(
   storybookApp?.unmount();
   if (map.has(canvasElement)) map.delete(canvasElement);
 }
-
-function createOrUpdateSlots(context: StoryContext<VueRenderer, Args>) {
-  const { id: storyID, component } = context;
-  const slots = generateSlots(context);
-  if (slotsMap.has(storyID)) {
-    const app = slotsMap.get(storyID);
-    if (app?.reactiveSlots) updateArgs(app.reactiveSlots, slots);
-    return app?.reactiveSlots;
-  }
-  slotsMap.set(storyID, { component, reactiveSlots: slots });
-  return slots;
-}
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderFunctionalComponent.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderFunctionalComponent.stories.ts
index 2e723ab01b98..bf70bc34f074 100644
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderFunctionalComponent.stories.ts
+++ b/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderFunctionalComponent.stories.ts
@@ -27,8 +27,6 @@ export {
   NoDecorators,
   DecoratorFunctionalComponent,
   DecoratorFunctionalComponentArgsFromContext,
-  DecoratorFunctionalComponentArgsFromProps,
   DecoratorComponentOptions,
   DecoratorComponentOptionsArgsFromData,
-  DecoratorComponentOptionsArgsFromProps,
 } from './ReactiveDecorators.stories';
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromData.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromData.stories.ts
index 75d25b464bff..9c904283d3bd 100644
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromData.stories.ts
+++ b/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromData.stories.ts
@@ -40,8 +40,6 @@ export {
   NoDecorators,
   DecoratorFunctionalComponent,
   DecoratorFunctionalComponentArgsFromContext,
-  DecoratorFunctionalComponentArgsFromProps,
   DecoratorComponentOptions,
   DecoratorComponentOptionsArgsFromData,
-  DecoratorComponentOptionsArgsFromProps,
 } from './ReactiveDecorators.stories';
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromProps.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromProps.stories.ts
deleted file mode 100644
index 68c0ee37997b..000000000000
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/CustomRenderOptionsArgsFromProps.stories.ts
+++ /dev/null
@@ -1,33 +0,0 @@
-import type { Meta } from '@storybook/vue3';
-import { defineComponent } from 'vue';
-import Reactivity from './Reactivity.vue';
-import * as ReactiveDecorators from './ReactiveDecorators.stories';
-
-const meta = {
-  ...ReactiveDecorators.default,
-  component: Reactivity,
-  render: (args, { argTypes }) => {
-    return defineComponent({
-      props: Object.keys(argTypes),
-      components: { Reactivity },
-      template: `<div>Custom render uses options api and binds args to props: <Reactivity v-bind="$props">
-         <template #header="{title}"><h3>{{ header }} - Title: {{ title }}</h3></template>
-         {{ $props.default }}
-         <template #footer>{{ footer }}</template>
-         </Reactivity>
-        </div>`,
-    });
-  },
-} satisfies Meta<typeof Reactivity>;
-
-export default meta;
-
-export {
-  NoDecorators,
-  DecoratorFunctionalComponent,
-  DecoratorFunctionalComponentArgsFromContext,
-  DecoratorFunctionalComponentArgsFromProps,
-  DecoratorComponentOptions,
-  DecoratorComponentOptionsArgsFromData,
-  DecoratorComponentOptionsArgsFromProps,
-} from './ReactiveDecorators.stories';
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveArgs.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveArgs.stories.ts
index fce608950be9..d48352194c55 100644
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveArgs.stories.ts
+++ b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveArgs.stories.ts
@@ -88,10 +88,12 @@ export const ReactiveHtmlWrapper: Story = {
 };
 
 // to test that Simple html Decorators in CSF2 format are applied correctly in reactive mode
-const ReactiveCSF2WrapperTempl: StoryFn = (args, { argTypes }) => ({
+const ReactiveCSF2WrapperTempl: StoryFn = (args) => ({
   components: { ReactiveArgs },
-  props: Object.keys(argTypes),
-  template: '<ReactiveArgs v-bind="$props" />',
+  setup() {
+    return { args };
+  },
+  template: '<ReactiveArgs v-bind="args" />',
 });
 
 export const ReactiveCSF2Wrapper = ReactiveCSF2WrapperTempl.bind({});
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveDecorators.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveDecorators.stories.ts
index 01c1727c4e8b..143cd1784559 100644
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveDecorators.stories.ts
+++ b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ReactiveDecorators.stories.ts
@@ -51,7 +51,7 @@ export const DecoratorFunctionalComponent: Story = {
   decorators: [
     (storyFn, context) => {
       const story = storyFn();
-      return () => h('div', [h('h2', ['Decorator not using args']), [h(story, context.args)]]);
+      return () => h('div', [h('h2', ['Decorator not using args']), [h(story)]]);
     },
   ],
 };
@@ -61,20 +61,7 @@ export const DecoratorFunctionalComponentArgsFromContext: Story = {
     (storyFn, context) => {
       const story = storyFn();
       return () =>
-        h('div', [
-          h('h2', ['Decorator using args.label: ', context.args.label]),
-          [h(story, context.args)],
-        ]);
-    },
-  ],
-};
-
-export const DecoratorFunctionalComponentArgsFromProps: Story = {
-  decorators: [
-    (storyFn, context) => {
-      const story = storyFn();
-      return (args) =>
-        h('div', [h('h2', `Decorator using args.label: ${args.label}`), h(story, context.args)]);
+        h('div', [h('h2', ['Decorator using args.label: ', context.args.label]), [h(story)]]);
     },
   ],
 };
@@ -99,14 +86,3 @@ export const DecoratorComponentOptionsArgsFromData: Story = {
     },
   ],
 };
-
-export const DecoratorComponentOptionsArgsFromProps: Story = {
-  decorators: [
-    (storyFn, context) => {
-      return {
-        props: ['label'],
-        template: '<div><h2>Decorator using label: {{label}}</h2><story /></div>',
-      };
-    },
-  ],
-};
diff --git a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ScopedSlots.stories.ts b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ScopedSlots.stories.ts
index 1d338dc24f9e..95266e452711 100644
--- a/code/renderers/vue3/template/stories_vue3-vite-default-ts/ScopedSlots.stories.ts
+++ b/code/renderers/vue3/template/stories_vue3-vite-default-ts/ScopedSlots.stories.ts
@@ -60,7 +60,7 @@ export const CustomRender: Story = {
     setup() {
       return { args };
     },
-    template: `<MySlotComponent :label="args.label" v-slot="slotProps">
+    template: `<MySlotComponent v-bind="args" v-slot="slotProps">
   	              {{ slotProps.text }}, {{ slotProps.year }}
               </MySlotComponent>`,
   }),
@@ -73,7 +73,7 @@ export const CustomRenderUsingFunctionSlot: Story = {
     setup() {
       return { args };
     },
-    template: `<MySlotComponent :label="args.label" v-slot="slotProps">
+    template: `<MySlotComponent v-bind="args" v-slot="slotProps">
   	            {{args.default(slotProps)}}
               </MySlotComponent>`,
   }),