diff --git a/sdk_container/.repo/manifests/version.txt b/sdk_container/.repo/manifests/version.txt
index 19c0a0a08d..4c39ca6fe5 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-20220601-2100
-FLATCAR_VERSION_ID=3227.0.0
-FLATCAR_BUILD_ID="nightly-20220601-2100"
+FLATCAR_VERSION=3227.1.0+nightly-20220602-2100
+FLATCAR_VERSION_ID=3227.1.0
+FLATCAR_BUILD_ID="nightly-20220602-2100"
 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 a7264eba53..45901d5a94 160000
--- a/sdk_container/src/third_party/coreos-overlay
+++ b/sdk_container/src/third_party/coreos-overlay
@@ -1 +1 @@
-Subproject commit a7264eba530a56faa174bb6aaa4d2e69dda078d2
+Subproject commit 45901d5a9460dd34530be1b5abe43ea30e54d188