diff --git a/changelog/bugfixes/2023-10-13-update-postinstall-cleanup.md b/changelog/bugfixes/2023-10-13-update-postinstall-cleanup.md
new file mode 100644
index 0000000000..7e089d109a
--- /dev/null
+++ b/changelog/bugfixes/2023-10-13-update-postinstall-cleanup.md
@@ -0,0 +1 @@
+- Fixed the postinstall hook failure when updating from Azure instances without OEM systemd-sysext images to Flatcar Alpha 3745.x.y ([update_engine#29](https://github.com/flatcar/update_engine/pull/29))
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r13.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r14.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r13.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r14.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
index 12cee38da3..927746c768 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
@@ -8,7 +8,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="f9211bc0bd210499ee7e231c6515064cc29ded64" # flatcar-master
+	CROS_WORKON_COMMIT="a95d6d86c019ebe33a605cf03cb6e0b3a8405056" # flatcar-master
 	KEYWORDS="amd64 arm64"
 fi
 
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r22.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r23.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r22.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r23.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
index e91cefd9ff..637cb31b83 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-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="49aa12ae92a40918dbdf40769b2bff2b12942133" # flatcar-master
+	CROS_WORKON_COMMIT="102a4cddcac56174c8533abb53f0a42562433014" # flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi