diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 4902b67f34..312806e601 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3423.0.0+nightly-20221114-2100
-FLATCAR_VERSION_ID=3423.0.0
-FLATCAR_BUILD_ID="nightly-20221114-2100"
-FLATCAR_SDK_VERSION=3423.0.0+nightly-20221114-2100
+FLATCAR_VERSION=3425.0.0+nightly-20221116-2100
+FLATCAR_VERSION_ID=3425.0.0
+FLATCAR_BUILD_ID="nightly-20221116-2100"
+FLATCAR_SDK_VERSION=3425.0.0+nightly-20221116-2100
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 37879c4292..f86c106595 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 37879c4292f7d242c5acff834b9a847a06fe3a90
+Subproject commit f86c10659583a68f7126d5f203cd56f7ef338c4d