diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 35191e08a7..9c71b2421d 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3495.0.0+nightly-20230125-2100
-FLATCAR_VERSION_ID=3495.0.0
-FLATCAR_BUILD_ID="nightly-20230125-2100"
-FLATCAR_SDK_VERSION=3495.0.0+nightly-20230125-2100
+FLATCAR_VERSION=3500.0.0+nightly-20230130-2100
+FLATCAR_VERSION_ID=3500.0.0
+FLATCAR_BUILD_ID="nightly-20230130-2100"
+FLATCAR_SDK_VERSION=3500.0.0+nightly-20230130-2100
diff --git a/sdk_container/src/third_party/coreos-overlay b/sdk_container/src/third_party/coreos-overlay
index f541a330fe..4c3cbefd65 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit f541a330feddad34d53a69adc3a96b5c7a61920c
+Subproject commit 4c3cbefd65e5c4b7e0d5cee6a8dc01fed52eb3ce