diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-move-waagent.conf-under-usr-share-oem.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-move-waagent.conf-under-usr-share-oem.patch
deleted file mode 100644
index bd6f6174fc..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0001-move-waagent.conf-under-usr-share-oem.patch
+++ /dev/null
@@ -1,44 +0,0 @@
-From c2fd79f7dd3110001f25669e343d8b8fc835e5ce Mon Sep 17 00:00:00 2001
-From: Alex Crawford <alex.crawford@coreos.com>
-Date: Wed, 1 Oct 2014 10:14:41 -0700
-Subject: [PATCH] move waagent.conf under /usr/share/oem
-
----
- waagent | 10 +++++-----
- 1 file changed, 5 insertions(+), 5 deletions(-)
-
-diff --git a/waagent b/waagent
-index 15f817d..35b3755 100644
---- a/waagent
-+++ b/waagent
-@@ -2547,14 +2547,14 @@ class LoadBalancerProbeServer(object):
- 
- class ConfigurationProvider(object):
-     """
--    Parse amd store key:values in /etc/waagent.conf.
-+    Parse amd store key:values in /usr/share/oem/waagent.conf.
-     """
-     def __init__(self):
-         self.values = dict()
--        if os.path.isfile("/etc/waagent.conf") == False:
--            raise Exception("Missing configuration in /etc/waagent.conf")
-+        if os.path.isfile("/usr/share/oem/waagent.conf") == False:
-+            raise Exception("Missing configuration in /usr/share/oem/waagent.conf")
-         try:
--            for line in GetFileContents("/etc/waagent.conf").split('\n'):
-+            for line in GetFileContents("/usr/share/oem/waagent.conf").split('\n'):
-                 if not line.startswith("#") and "=" in line:
-                     parts = line.split()[0].split('=')
-                     value = parts[1].strip("\" ")
-@@ -2563,7 +2563,7 @@ class ConfigurationProvider(object):
-                     else:
-                         self.values[parts[0]] = None
-         except:
--            Error("Unable to parse /etc/waagent.conf")
-+            Error("Unable to parse /usr/share/oem/waagent.conf")
-             raise
-         return
- 
--- 
-1.9.3
-
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0002-allow-agent-to-set-password-for-core-user.patch b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0002-allow-agent-to-set-password-for-core-user.patch
deleted file mode 100644
index 13dc9e7cc4..0000000000
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/files/0002-allow-agent-to-set-password-for-core-user.patch
+++ /dev/null
@@ -1,34 +0,0 @@
-From 8e3f94badcacfd4b681fa72619cf0c9c1d904714 Mon Sep 17 00:00:00 2001
-From: Alex Crawford <alex.crawford@coreos.com>
-Date: Fri, 10 Oct 2014 10:58:08 -0700
-Subject: [PATCH] Allow agent to set password for 'core' user
-
----
- waagent | 4 +++-
- 1 file changed, 3 insertions(+), 1 deletion(-)
-
-diff --git a/waagent b/waagent
-index 45ab97a..6b0e0cd 100644
---- a/waagent
-+++ b/waagent
-@@ -972,6 +972,8 @@ class CoreOSDistro(AbstractDistro):
-     CoreOS Distro concrete class
-     Put CoreOS specific behavior here...
-     """
-+    CORE_UID = 500
-+
-     def __init__(self):
-         super(CoreOSDistro,self).__init__()
-         self.requiredDeps += [ "/usr/bin/systemctl" ]
-@@ -1059,7 +1061,7 @@ class CoreOSDistro(AbstractDistro):
-             pass
-         if uidmin == None:
-             uidmin = 100
--        if userentry != None and userentry[2] < uidmin:
-+        if userentry != None and userentry[2] < uidmin and userentry[2] != self.CORE_UID:
-             Error("CreateAccount: " + user + " is a system user. Will not set password.")
-             return "Failed to set password for system user: " + user + " (0x06)."
-         if userentry == None:
--- 
-1.9.3
-
diff --git a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r1.ebuild b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r2.ebuild
similarity index 84%
rename from sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r1.ebuild
rename to sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r2.ebuild
index f0ac664fe1..69cd07514b 100644
--- a/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/app-emulation/wa-linux-agent/wa-linux-agent-2.0.8-r2.ebuild
@@ -7,7 +7,7 @@
 EAPI=4
 
 EGIT_REPO_URI="git://github.com/Azure/WALinuxAgent"
-EGIT_COMMIT="639581c3e61ce7365020de88999325a36b8cb1d7"
+EGIT_COMMIT="11ec1548b335d8b64e61e67d8b90906d560d7b0d"
 EGIT_MASTER="2.0"
 
 inherit toolchain-funcs git-2
@@ -23,10 +23,6 @@ IUSE=""
 
 RDEPEND="dev-lang/python-oem"
 
-src_prepare() {
-	epatch "${FILESDIR}"/*.patch
-}
-
 src_install() {
 	into "/usr/share/oem"
 	dobin "${S}"/waagent