diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index afd4d2da54..b945b1bcc9 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3545.0.0+nightly-20230316-2100
-FLATCAR_VERSION_ID=3545.0.0
-FLATCAR_BUILD_ID="nightly-20230316-2100"
-FLATCAR_SDK_VERSION=3545.0.0+nightly-20230316-2100
+FLATCAR_VERSION=3549.0.0+nightly-20230320-2100
+FLATCAR_VERSION_ID=3549.0.0
+FLATCAR_BUILD_ID="nightly-20230320-2100"
+FLATCAR_SDK_VERSION=3549.0.0+nightly-20230320-2100
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index c3c0f97bda..49c7a6c141 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit c3c0f97bda543f5461fbfd9324aa728c22da2c71
+Subproject commit 49c7a6c14121bcf6bf3e9b0cc72257fffa5f1b9e