diff --git a/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-05-11-create-etc-flatcar-update.conf.md b/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-05-11-create-etc-flatcar-update.conf.md
new file mode 100644
index 0000000000..9f4c6b307b
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-05-11-create-etc-flatcar-update.conf.md
@@ -0,0 +1 @@
+- Ensured `/etc/flatcar/update.conf` exists because it happens to be used as flag file for Ansible ([init#71](https://github.com/flatcar-linux/init/pull/71))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
index b56671a3e6..7356523945 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
@@ -10,7 +10,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="40af7f1424c0a3de90306c5c9957c12722aa89dc" # flatcar-master
+	CROS_WORKON_COMMIT="33858a125b2a180254343839ed432e20a0cddaca" # flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi