diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 765bf08fd9..957a104edf 100644
--- a/sdk_container/.repo/manifests/version.txt
+++ b/sdk_container/.repo/manifests/version.txt
@@ -1,4 +1,4 @@
-FLATCAR_VERSION=3227.2.0+nightly-20220802-2100
-FLATCAR_VERSION_ID=3227.2.0
-FLATCAR_BUILD_ID="nightly-20220802-2100"
+FLATCAR_VERSION=3227.2.1
+FLATCAR_VERSION_ID=3227.2.1
+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 99a778ec3e..8d74afd7f2 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit 99a778ec3e6597821f65aca0b2a0af18ef60880f
+Subproject commit 8d74afd7f21a4a3f27c858eae8ef88f2a9c8e7e5