diff --git a/.github/workflows/pkgci_shark_ai.yml b/.github/workflows/pkgci_shark_ai.yml
index bfcfbce9983..659a3455f0c 100644
--- a/.github/workflows/pkgci_shark_ai.yml
+++ b/.github/workflows/pkgci_shark_ai.yml
@@ -67,52 +67,6 @@ jobs:
           path: smoke-test-${{ matrix.name }}.xml
 
 
-  direct_to_batcher_test:
-    name: "Direct to Batcher Test (${{ matrix.name }})"
-    runs-on: ${{ matrix.runs-on }}
-    strategy:
-      fail-fast: false
-      matrix:
-        include:
-          - name: cpu
-            runs-on: azure-cpubuilder-linux-scale
-            test_device: cpu
-            python-version: 3.11
-          - name: amdgpu_rocm_mi325_gfx942
-            runs-on: linux-mi325-1gpu-ossci-nod-ai
-            test_device: gfx942
-            python-version: 3.11
-    defaults:
-      run:
-        shell: bash
-    env:
-      PACKAGE_DOWNLOAD_DIR: ${{ github.workspace }}/.packages
-      VENV_DIR: ${{ github.workspace }}/.venv
-    steps:
-      - name: Run rocminfo
-        if: contains(matrix.test_device, 'gfx')
-        run: rocminfo
-      - name: "Checkout Code"
-        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4.2.2
-      - name: "Set up environment and install PkgCI Artifacts"
-        uses: ./.github/actions/pkgci-setup
-        with:
-          python-version: ${{matrix.python-version}}
-          artifact-run-id: ${{ inputs.artifact_run_id }}
-      - name: Run Direct-to-batcher Test
-        run: |
-          source ${VENV_DIR}/bin/activate
-          pytest -v -s --test_device=${{ matrix.test_device }} \
-            --junitxml=direct-to-batcher-test-${{ matrix.name }}.xml \
-            app_tests/integration_tests/llm/shortfin/direct_to_batcher_test.py \
-            --log-cli-level=INFO
-      - name: Upload Test Results
-        if: always()
-        uses: actions/upload-artifact@ea165f8d65b6e75b540449e92b4886f43607fa02 # v4.6.2
-        with:
-          name: direct-to-batcher-test-${{ matrix.name }}
-          path: direct-to-batcher-test-${{ matrix.name }}.xml
-
   # TODO: Figure out how to publish one summary over many pytest runs. This current test summary action doesn't work due to perms problems.
   # test_summary:
   #   name: "Test Summary"
diff --git a/requirements-iree-pinned.txt b/requirements-iree-pinned.txt
index 5a08187d13c..f743c2dda9c 100644
--- a/requirements-iree-pinned.txt
+++ b/requirements-iree-pinned.txt
@@ -3,6 +3,6 @@ wave-lang==3.7.0
 
 # Keep these versions synced with SHORTFIN_IREE_GIT_TAG in shortfin/CMakeLists.txt
 --find-links https://iree.dev/pip-release-links.html
-iree-base-compiler==3.7.0rc20250828
-iree-base-runtime==3.7.0rc20250828
-iree-turbine==3.7.0rc20250828
+iree-base-compiler==3.8.0rc20250909
+iree-base-runtime==3.8.0rc20250909
+iree-turbine==3.8.0rc20250909
diff --git a/sharktank/tests/models/llama/toy_llama_test.py b/sharktank/tests/models/llama/toy_llama_test.py
index 3b72bfdc74b..b68031e1e81 100644
--- a/sharktank/tests/models/llama/toy_llama_test.py
+++ b/sharktank/tests/models/llama/toy_llama_test.py
@@ -89,7 +89,14 @@ def testDecodePerplexity(self):
                 reason="https://github.com/iree-org/iree/issues/21889",
             ),
         ),
-        False,
+        pytest.param(
+            False,
+            marks=pytest.mark.xfail(
+                raises=iree.compiler.CompilerToolError,
+                strict=True,
+                reason="https://github.com/iree-org/iree/issues/22007",
+            ),
+        ),
     ],
 )
 class TestToyLlamaIree: