diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index cc276356fc..c52d1e68c6 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3535.0.0+nightly-20230317-2100
+FLATCAR_VERSION=3535.0.0+nightly-20230320-2100
 FLATCAR_VERSION_ID=3535.0.0
-FLATCAR_BUILD_ID="nightly-20230317-2100"
+FLATCAR_BUILD_ID="nightly-20230320-2100"
 FLATCAR_SDK_VERSION=3535.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 54255091f4..d127a49695 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 54255091f4a74ed9223f4c4d82948ab78ba25c14
+Subproject commit d127a4969531f578cc34638a9bbb2289472d07d2