diff --git a/build_packages b/build_packages
index 885915d998..68098bfa2d 100755
--- a/build_packages
+++ b/build_packages
@@ -312,13 +312,17 @@ build_sysext_packages() {
     eclean_excludes+=( ${package_atoms} )
     for package in $package_atoms; do
        # --buildpkgonly does not install dependencies, so we install them
-       # separately before building the binary package
+       # separately before building the binary package. --ignore-world is needed
+       # to allow packages to be installed to both /usr and sysexts with
+       # conflicting USE flags. This will "break" the board root, but it's not
+       # used for execution, and affected packages will be rebuilt as needed.
        sudo --preserve-env=MODULES_SIGN_KEY,MODULES_SIGN_CERT \
          env USE="$useflags" FEATURES="-ebuild-locks binpkg-multi-instance" "${EMERGE_CMD[@]}" \
          "${EMERGE_FLAGS[@]}" \
          --quiet \
          --onlydeps \
          --binpkg-respect-use=y \
+         --ignore-world=y \
          "${package}"
 
        sudo --preserve-env=MODULES_SIGN_KEY,MODULES_SIGN_CERT \
@@ -327,6 +331,7 @@ build_sysext_packages() {
          --quiet \
          --buildpkgonly \
          --binpkg-respect-use=y \
+         --ignore-world=y \
          "${package}"
     done
     unset IFS
@@ -378,10 +383,10 @@ if [[ "${FLAGS_usepkgonly}" -eq "${FLAGS_FALSE}" ]]; then
   fi
 fi
 
-eclean-"$BOARD" --deep --exclude-file=<(qatom -F "%{CATEGORY}/%{PN}" "${eclean_excludes[@]}") packages
+eclean-"$BOARD" --deep --exclude-file=<(qatom -F "%{CATEGORY}/%{PN}" "${eclean_excludes[@]}") packages --unique-use
 # run eclean again, this time without the --deep option, to clean old versions
 # of sysext packages (those, for which .ebuild file no  longer exists)
-eclean-"$BOARD" packages
+eclean-"$BOARD" packages --unique-use
 
 info "Checking build root"
 test_image_content "${BOARD_ROOT}"
diff --git a/sdk_container/src/third_party/coreos-overlay/README.md b/sdk_container/src/third_party/coreos-overlay/README.md
index 150fb7b649..363fdfb20a 100644
--- a/sdk_container/src/third_party/coreos-overlay/README.md
+++ b/sdk_container/src/third_party/coreos-overlay/README.md
@@ -23,13 +23,12 @@ gets built into a developer image and is not OEM specific.
 gets built into the Container Linux SDK.
 
 `coreos-devel/board-packages` is everything that could be built into a
-development or production image, plus any OEM specific packages.
+development or production image.
 
 `coreos-base/oem-*` are the OEM specific packages. They mostly install things
-that belong in the OEM partition. Any RDEPENDS from these packages should
-be copied to the RDEPENDS in `board-packages` to ensure they are built.
+that belong in the OEM partition.
 
-`coreos-base/coreos-oem-*` are metapackages for OEM specific ACIs. 
+`coreos-base/coreos-oem-*` are metapackages for OEM specific ACIs.
 
 # Updating
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1-r17.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1-r18.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1-r17.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1-r18.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1.ebuild
index e89d411444..eca6b0bb1f 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-devel/board-packages/board-packages-0.0.1.ebuild
@@ -2,47 +2,19 @@
 # Distributed under the terms of the GNU General Public License v2
 # $Header: $
 
-EAPI=7
+EAPI=8
 
-DESCRIPTION="Meta ebuild for building all binary packages."
-HOMEPAGE="http://coreos.com/docs/sdk/"
-SRC_URI=""
+DESCRIPTION="Meta ebuild for building all binary packages"
+HOMEPAGE="https://www.flatcar.org/"
 
 LICENSE="GPL-2"
 SLOT="0"
 KEYWORDS="amd64 arm64"
-IUSE=""
 
-# Depend on everything OEMs need, but not the OEMs themselves.
-# This makes the built packages available for image_vm_util.sh but
-# avoids copying the oem specific files (e.g. grub configs) before
-# the oem partition is set up.
-DEPEND=""
 RDEPEND="
-	amd64? (
-		app-emulation/google-compute-engine
-		app-emulation/open-vm-tools
-		coreos-base/nova-agent-container
-		coreos-base/nova-agent-watcher
-	)
+	coreos-base/coreos
+	coreos-base/coreos-dev
 	sys-boot/grub
 	sys-boot/shim
 	sys-boot/shim-signed
-	app-containers/containerd
-	app-containers/docker
-	app-containers/docker-buildx
-	app-containers/docker-cli
-	app-containers/incus
-	app-emulation/amazon-ssm-agent
-	app-emulation/hv-daemons
-	app-emulation/wa-linux-agent
-	coreos-base/coreos
-	coreos-base/coreos-dev
-	coreos-base/flatcar-eks
-	net-misc/chrony
-	sys-fs/zfs
-	app-containers/podman
-	net-misc/passt
-	dev-lang/python
-	dev-python/pip
-	"
+"