diff --git a/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-07-13-ignition-kargs.md b/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-07-13-ignition-kargs.md
new file mode 100644
index 0000000000..1fa80f4c0b
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/changelog/bugfixes/2022-07-13-ignition-kargs.md
@@ -0,0 +1 @@
+- The Ignition v3 kargs directive failed before when used with the generic image where no `grub.cfg` exists, this was fixed by creating it first ([bootengine#47](https://github.com/flatcar-linux/bootengine/pull/47))
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 396a843d8e..cd5e7b7eb8 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="39caefd1da35d3600120b44ea5ee23ed22129b46" # flatcar-master
+	CROS_WORKON_COMMIT="95bb406972f1846945e8e355ab98cafa570f273f" # flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi