diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 5f9ff7850d..3836fe3f35 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3259.0.0+nightly-20220603-2100
-FLATCAR_VERSION_ID=3259.0.0
-FLATCAR_BUILD_ID="nightly-20220603-2100"
-FLATCAR_SDK_VERSION=3259.0.0+nightly-20220603-2100
+FLATCAR_VERSION=3264.0.0+nightly-20220608-2100
+FLATCAR_VERSION_ID=3264.0.0
+FLATCAR_BUILD_ID="nightly-20220608-2100"
+FLATCAR_SDK_VERSION=3264.0.0+nightly-20220608-2100
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index e57819e7f5..2a18e04464 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit e57819e7f5933fc81edf3f8d700d311306483aca
+Subproject commit 2a18e04464b66a83586e9f880be4b4a325108e7c