diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 8a7e3f8bea..726b971db8 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3277.1.1+nightly-20220831-2100
-FLATCAR_VERSION_ID=3277.1.1
-FLATCAR_BUILD_ID="nightly-20220831-2100"
+FLATCAR_VERSION=3277.1.2+nightly-20220901-2100
+FLATCAR_VERSION_ID=3277.1.2
+FLATCAR_BUILD_ID="nightly-20220901-2100"
 FLATCAR_SDK_VERSION=3277.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 26c58799ee..4de43828f2 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 26c58799eeeb7747885bb76822c9c69b722f763e
+Subproject commit 4de43828f29b789af32a19663531ca989ec13d0a