diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 3e8d9a977f..46e8927131 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3227.0.0+nightly-20220520-0155
-FLATCAR_VERSION_ID=3227.0.0
-FLATCAR_BUILD_ID="nightly-20220520-0155"
+FLATCAR_VERSION=3227.1.0
+FLATCAR_VERSION_ID=3227.1.0
+FLATCAR_BUILD_ID=""
 FLATCAR_SDK_VERSION=3227.0.0
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index 3f03e70654..4b1944e85e 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 3f03e706542e9114911528c4de508ba524e53643
+Subproject commit 4b1944e85e3044980b570016c4eabcaadc5b1a7e