diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 59c56a908b..e3cf42478f 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3549.0.0+nightly-20230321-2100
+FLATCAR_VERSION=3549.0.0+nightly-20230327-2100
 FLATCAR_VERSION_ID=3549.0.0
-FLATCAR_BUILD_ID="nightly-20230321-2100"
+FLATCAR_BUILD_ID="nightly-20230327-2100"
 FLATCAR_SDK_VERSION=3549.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index d1034edbc6..85ec2fbe96 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit d1034edbc626688a902906cdebf0d6432b4177f2
+Subproject commit 85ec2fbe9632cb7244f89566d8d4d23acc3e0895