diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/Manifest b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/Manifest
index 278c8b97ac..909ecd6f9f 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/Manifest
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/Manifest
@@ -1 +1 @@
-DIST wa-linux-agent-2.9.1.1.tar.gz 1986486 BLAKE2B ce630830886fe9bb729cfa7d92ac40bf158d26272b83e099fa2957928761642f84af2eef28ad691a076a89af6304f6ae67d7aa37ecf8629b3b973d083e619ae7 SHA512 3f44aecc16ac545db4b550586f168dbbdef34289aad6775973517bf645e5a1d486864c01e974f03a71b3e946c14e1ca140673a75c1cd602aac28725eaa68e83d
+DIST wa-linux-agent-2.12.0.4.tar.gz 2143917 BLAKE2B 4c4091569c3fc302de81c1d8467f33f8e3e817387697c339e98eb8def3100939a9cd99044fb934f7b4ce0830ae626bb5501c60f76931a614fa1392fdcd179e20 SHA512 09cfa8072f705dd4c96dda9c6a0b24b6050fcb57a0ad9bd5307ec07c7bb8270e48c17fd0fcb13cc2c8ca59472ec60af1657b536089eb9f116ca77658f6112595
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-flatcar-changes.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-flatcar-changes.patch
index f72529dc28..c47371ef4d 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-flatcar-changes.patch
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-flatcar-changes.patch
@@ -162,7 +162,7 @@ index 83123e3f..b9257a9b 100644
          return DebianOSBaseUtil()
  
      if distro_name in ("flatcar", "coreos") or distro_code_name in ("flatcar", "coreos"):
-+        if Version(distro_version) >= Version("3550"):
++        if DistroVersion(distro_version) >= DistroVersion("3550"):
 +            return FlatcarUtil()
          return CoreOSUtil()
  
@@ -251,15 +251,16 @@ index 00000000..eeaf25ce
 +                time.sleep(wait)
 +            else:
 +                logger.warn("exceeded restart retries")
-diff --git a/azurelinuxagent/common/persist_firewall_rules.py b/azurelinuxagent/common/persist_firewall_rules.py
+diff --git a/azurelinuxagent/ga/persist_firewall_rules.py b/azurelinuxagent/ga/persist_firewall_rules.py
 index 74b878ce..22562c96 100644
---- a/azurelinuxagent/common/persist_firewall_rules.py
-+++ b/azurelinuxagent/common/persist_firewall_rules.py
-@@ -35,6 +35,7 @@ class PersistFirewallRulesHandler(object):
+--- a/azurelinuxagent/ga/persist_firewall_rules.py
++++ b/azurelinuxagent/ga/persist_firewall_rules.py
+@@ -35,7 +35,7 @@ class PersistFirewallRulesHandler(object):
  # Do not edit.
  [Unit]
- Description=Setup network rules for WALinuxAgent 
-+After=systemd-sysext.service
+ Description=Setup network rules for WALinuxAgent
+-After=local-fs.target 
++After=local-fs.target systemd-sysext.service
  Before=network-pre.target
  Wants=network-pre.target
  DefaultDependencies=no
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.9.1.1-r2.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.12.0.4-r1.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.9.1.1-r2.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.12.0.4-r1.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-azure/oem-azure-2.9.1.1-r3.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/oem-azure/oem-azure-2.12.0.4-r1.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/oem-azure/oem-azure-2.9.1.1-r3.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/oem-azure/oem-azure-2.12.0.4-r1.ebuild