diff --git a/pkg/daemon/update.go b/pkg/daemon/update.go
index 9f2ea3cb17..83c9b75b31 100644
--- a/pkg/daemon/update.go
+++ b/pkg/daemon/update.go
@@ -1937,7 +1937,7 @@ func (dn *Daemon) InplaceUpdateViaNewContainer(target string) error {
 		glog.Info("SELinux is not enforcing")
 	}
 
-	err = runCmdSync("systemd-run", "--unit", "machine-config-daemon-update-rpmostree-via-container", "--collect", "--wait", "--", "podman", "run", "--env-file", "/etc/mco/proxy.env", "--authfile", "/var/lib/kubelet/config.json", "--privileged", "--pid=host", "--net=host", "--rm", "-v", "/:/run/host", target, "rpm-ostree", "ex", "deploy-from-self", "/run/host")
+	err = runCmdSync("systemd-run", "--unit", "machine-config-daemon-update-rpmostree-via-container", "-p", "EnvironmentFile=-/etc/mco/proxy.env", "--collect", "--wait", "--", "podman", "run", "--env-file", "/etc/mco/proxy.env", "--authfile", "/var/lib/kubelet/config.json", "--privileged", "--pid=host", "--net=host", "--rm", "-v", "/:/run/host", target, "rpm-ostree", "ex", "deploy-from-self", "/run/host")
 	if err != nil {
 		return err
 	}