diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index a8a3fcfebe..ca8ee2d9da 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3348.0.0+nightly-20220831-2100
-FLATCAR_VERSION_ID=3348.0.0
-FLATCAR_BUILD_ID="nightly-20220831-2100"
-FLATCAR_SDK_VERSION=3348.0.0+nightly-20220831-2100
+FLATCAR_VERSION=3349.0.0+nightly-20220901-2100
+FLATCAR_VERSION_ID=3349.0.0
+FLATCAR_BUILD_ID="nightly-20220901-2100"
+FLATCAR_SDK_VERSION=3349.0.0+nightly-20220901-2100
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 66eee475ec..7a5771f93e 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 66eee475ec5bec4cb52d240ababf0a9b56d048c4
+Subproject commit 7a5771f93e8e3fea51a4ce2d72ce7682ce533250