diff --git a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/Manifest b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/Manifest
index 871bed4884..6372a6c0da 100644
--- a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/Manifest
+++ b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/Manifest
@@ -1,2 +1,2 @@
-DIST azure-vm-utils-0.5.2.tar.gz 42079 BLAKE2B e5380af38f072b15adb5b25b3df77fea699e88cddc1dd2779a263d63ee795cf79f3df8127265aebbdb031f96dbcfa10e36be71ebca35998f9d7e860b74b753e0 SHA512 2df38df001ee08da68543a8597c485b8f2b4e50fcdbe93defb443a1905fbc87ed5c2ef7903b79d795733b78e37fa8584a4ce33082b7a4490a1c7c4a8e5d8fcac
 DIST azure-vm-utils-0.6.0.tar.gz 48676 BLAKE2B c58a68ffcfa25fdab554c501de30e859f38b949ad7da215b9cf59b5884688a52b7279af2aec0c4dfe80d5240e8baa7460bb8c3e0800235ba7e676a78ac2e90b0 SHA512 f54dc3c6ca45b50a063a9c774f94cec3dd01e910088dbcbbf1ce279dc0c4874aa0fe2b27c9596248c137f787e9be51190cacb0d5ab8ab0cdd4ba994f60b64ddc
+DIST azure-vm-utils-0.7.0.tar.gz 73642 BLAKE2B 053122ed238e36f4b424e3befb01ea19f8557087e5af1aec23034a93e9844efd127a25061fb6cdfb23ae40aab7795f1aa179ee1c8494cdc48f235c479145b4eb SHA512 21ad39efe5a70ce4a222d30cd5f303c671cc2621a466e2b43e27c77cc85303e1f45d4f361f548e0c030a1c8c954eb0309a45eba615a2e2d454c73ac112db4e5c
diff --git a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.6.0-r1.ebuild b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.6.0-r1.ebuild
index 2dfd6b33b0..28226a69e8 100644
--- a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.6.0-r1.ebuild
+++ b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.6.0-r1.ebuild
@@ -10,7 +10,7 @@ HOMEPAGE="https://github.com/Azure/azure-vm-utils"
 SRC_URI="https://github.com/Azure/${PN}/archive/refs/tags/v${PV}/${P}.tar.gz"
 LICENSE="MIT"
 SLOT="0"
-KEYWORDS="~amd64 ~arm64"
+KEYWORDS="amd64 arm64"
 IUSE="dracut test"
 RESTRICT="!test? ( test )"
 
diff --git a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.5.2-r1.ebuild b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.7.0.ebuild
similarity index 70%
rename from sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.5.2-r1.ebuild
rename to sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.7.0.ebuild
index 9b4676a245..034217c310 100644
--- a/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.5.2-r1.ebuild
+++ b/sdk_container/src/third_party/portage-stable/sys-apps/azure-vm-utils/azure-vm-utils-0.7.0.ebuild
@@ -3,7 +3,7 @@
 
 EAPI=8
 
-inherit cmake udev
+inherit cmake optfeature udev
 
 DESCRIPTION="Utilities and udev rules to support Linux on Azure"
 HOMEPAGE="https://github.com/Azure/azure-vm-utils"
@@ -11,7 +11,7 @@ SRC_URI="https://github.com/Azure/${PN}/archive/refs/tags/v${PV}/${P}.tar.gz"
 LICENSE="MIT"
 SLOT="0"
 KEYWORDS="~amd64 ~arm64"
-IUSE="test"
+IUSE="dracut test"
 RESTRICT="!test? ( test )"
 
 CDEPEND="
@@ -23,6 +23,7 @@ DEPEND="
 "
 RDEPEND="
 	${CDEPEND}
+	dracut? ( sys-kernel/dracut )
 "
 BDEPEND="
 	virtual/pkgconfig
@@ -30,8 +31,12 @@ BDEPEND="
 
 src_configure() {
 	local mycmakeargs=(
-		-DUDEV_RULES_INSTALL_DIR="$(get_udevdir)/rules.d"
+		-DAZURE_EPHEMERAL_DISK_SETUP_CONF_INSTALL_DIR="${EPREFIX}/etc"
+		-DDRACUT=$(usex dracut dracut "")
 		-DENABLE_TESTS=$(usex test)
+		-DINITRAMFS_TOOLS=
+		-DUDEV_RULES_INSTALL_DIR="${EPREFIX}$(get_udevdir)/rules.d"
+		-DVERSION="v${PV}"
 	)
 	cmake_src_configure
 }
@@ -48,6 +53,7 @@ src_install() {
 
 pkg_postinst() {
 	udev_reload
+	optfeature "aggregating multiple NVMe devices into a RAID-0 array" sys-fs/mdadm
 }
 
 pkg_postrm() {