diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index b9976ab9b5..cae7e1a9f4 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3374.2.0+nightly-20221208-2100
-FLATCAR_VERSION_ID=3374.2.0
-FLATCAR_BUILD_ID="nightly-20221208-2100"
+FLATCAR_VERSION=3374.2.1+nightly-20221212-2100
+FLATCAR_VERSION_ID=3374.2.1
+FLATCAR_BUILD_ID="nightly-20221212-2100"
 FLATCAR_SDK_VERSION=3374.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 363c3e3f80..83ea77c81e 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 363c3e3f8011ff9c5a6bb5c962d0f94590540659
+Subproject commit 83ea77c81e3c6c6cf08fb5599ed703088deb3afc