diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
index 99662f96c16..6f5868fefbc 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/coreos-init/coreos-init-9999.ebuild
@@ -10,7 +10,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="e502aab19632fda2a43938d02ff1104043173702" # flatcar-master
+	CROS_WORKON_COMMIT="242ad2e85b30896d580dd51f91ac6f6c6f9e4af0" # TODO: flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi
 
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/files/oems/azure b/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/files/oems/azure
new file mode 100644
index 00000000000..b44e60b2ebe
--- /dev/null
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/files/oems/azure
@@ -0,0 +1,13 @@
+/etc/systemd/system/nvidia.service
+/oem/bin/setup-nvidia
+/oem/bin/install-nvidia
+/oem/units/nvidia.service
+/etc/systemd/system/oem-cloudinit.service
+/etc/systemd/system/multi-user.target.wants/oem-cloudinit.service
+/etc/systemd/system/waagent.service
+/etc/systemd/system/multi-user.target.wants/waagent.service
+/oem/waagent.conf
+/oem/python/
+/oem/bin/
+/oem/units/
+/oem/base/
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/files/oems/qemu b/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/files/oems/qemu
new file mode 100644
index 00000000000..e69de29bb2d
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/misc-files-0.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/misc-files-0.ebuild
index 18416bc822d..b97dc20b78b 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/misc-files-0.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/misc-files/misc-files-0.ebuild
@@ -79,6 +79,14 @@ src_install() {
     insinto '/etc/bash/bashrc.d'
     doins "${FILESDIR}/99-flatcar-bcc"
 
+    insinto '/usr/share/flatcar'
+    # The "oems" folder should contain a file "$OEMID" for each expected OEM sysext and
+    # either be empty or contain a newline-separated list of files to delete during the
+    # migration (done from the initrd). The existance of the file will help old clients
+    # to do the fallback download of the sysext payload in the postinstall hook.
+    # The paths should use /oem instead of /usr/share/oem/ to avoid symlink resolution.
+    doins -r "${FILESDIR}"/oems
+
     dotmpfiles "${T}/home-core-bash-symlinks.conf"
     # Ideally we would be calling systemd-tmpfiles to create the
     # symlinks, but at this point systemd may not have any info about
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r10.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r11.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r10.ebuild
rename to sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-0.4.10-r11.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
index 297549bd82a..5302d86cd08 100644
--- a/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/coreos-base/update_engine/update_engine-9999.ebuild
@@ -8,7 +8,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="c6f566d47d8949632f7f43871eb8d5c625af3209" # flatcar-master
+	CROS_WORKON_COMMIT="8b8fc04f671d9ddacade672ebde12e941828f769" # TODO: flatcar-master
 	KEYWORDS="amd64 arm64"
 fi
 
@@ -102,6 +102,11 @@ src_install() {
 	insinto /usr/share/dbus-1/system.d
 	doins com.coreos.update1.conf
 
+	insinto /usr/share/update_engine
+	doins src/update_engine/update_metadata.proto
+	exeinto /usr/share/update_engine
+	doexe decode_payload
+
 	# Install rule to remove old UpdateEngine.conf from /etc
 	dotmpfiles "${FILESDIR}"/update-engine.conf
 }
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r17.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r18.ebuild
similarity index 100%
rename from sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r17.ebuild
rename to sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-0.0.38-r18.ebuild
diff --git a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
index b8c81c0245c..b81637c9931 100644
--- a/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
+++ b/sdk_container/src/third_party/coreos-overlay/sys-kernel/bootengine/bootengine-9999.ebuild
@@ -10,7 +10,7 @@ CROS_WORKON_REPO="https://github.com"
 if [[ "${PV}" == 9999 ]]; then
 	KEYWORDS="~amd64 ~arm ~arm64 ~x86"
 else
-	CROS_WORKON_COMMIT="cc0fdec0cc6c5692acac95a928984ea8a5eb8f08" # flatcar-master
+	CROS_WORKON_COMMIT="9392dd21a832bfecfa015165845bf2b2075c46b3" # TODO: flatcar-master
 	KEYWORDS="amd64 arm arm64 x86"
 fi