diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 76dfb2b7b3..4269329974 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3277.1.1+nightly-20220825-2100
-FLATCAR_VERSION_ID=3277.1.1
-FLATCAR_BUILD_ID="nightly-20220825-2100"
+FLATCAR_VERSION=3277.1.2
+FLATCAR_VERSION_ID=3277.1.2
+FLATCAR_BUILD_ID=""
 FLATCAR_SDK_VERSION=3277.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index b58b434e25..26c58799ee 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit b58b434e25d2a42cf72819992b26dd146a72a612
+Subproject commit 26c58799eeeb7747885bb76822c9c69b722f763e