diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r177.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r179.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r177.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-0.0.1-r179.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
index d02f3ac8a5..4736496db9 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
@@ -55,8 +55,7 @@ src_install() {
 
 	# Create compatibility symlinks in case /usr/lib64/ instead of /usr/lib/ was used
 	local compat
-	# os-release symlink is set up in scripts
-	for compat in modules systemd flatcar coreos kernel modprobe.d pam pam.d sysctl.d udev ; do
+	for compat in modules flatcar coreos ; do
 		dosym "../lib/${compat}" "/usr/lib64/${compat}"
 	done
 }
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.6.8-r6.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.6.8-r8.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.6.8-r6.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-3.6.8-r8.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
index d9726c8eb3..f4727dfd6d 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-apps/baselayout/baselayout-9999.ebuild
@@ -242,4 +242,15 @@ pkg_postinst() {
 		mkdir -p "${ROOT}/etc/init.d"
 		ln -sf "${func}" "${ROOT}/etc/init.d/functions.sh"
 	fi
+	# install compat symlinks in production images, not in SDK
+	# os-release symlink is set up in scripts
+	if ! use cros_host; then
+		local compat libdir
+		for compat in systemd kernel modprobe.d pam pam.d sysctl.d udev ; do
+			for libdir in $(get_all_libdirs) ; do
+				if [[ "${libdir}" == 'lib' ]]; then continue; fi
+				ln -sfT "../lib/${compat}" "${ROOT}/usr/${libdir}/${compat}"
+			done
+		done
+	fi
 }