diff --git a/src/confcom/HISTORY.rst b/src/confcom/HISTORY.rst
index b2a5d15494d..eff93382642 100644
--- a/src/confcom/HISTORY.rst
+++ b/src/confcom/HISTORY.rst
@@ -3,6 +3,10 @@
 Release History
 ===============
 
+1.2.1
+++++++
+* updating genpolicy to version 3.2.0.azl3.genpolicy3
+
 1.2.0
 ++++++
 * fixing metadata for uploaded fragments
diff --git a/src/confcom/azext_confcom/data/internal_config.json b/src/confcom/azext_confcom/data/internal_config.json
index 1d70aa60b09..a89c35447d6 100644
--- a/src/confcom/azext_confcom/data/internal_config.json
+++ b/src/confcom/azext_confcom/data/internal_config.json
@@ -1,5 +1,5 @@
 {
-    "version": "1.2.0",
+    "version": "1.2.1",
     "hcsshim_config": {
         "maxVersion": "1.0.0",
         "minVersion": "0.0.1"
diff --git a/src/confcom/azext_confcom/tests/latest/test_confcom_scenario.py b/src/confcom/azext_confcom/tests/latest/test_confcom_scenario.py
index 94d1601b687..fcea8fe86ea 100644
--- a/src/confcom/azext_confcom/tests/latest/test_confcom_scenario.py
+++ b/src/confcom/azext_confcom/tests/latest/test_confcom_scenario.py
@@ -577,8 +577,8 @@ def test_image_layers_python(self):
             aci_policy.populate_policy_content_for_all_images()
             layers = aci_policy.get_images()[0]._layers
             expected_layers = [
-                "069a26cef9f2cd9c8bdbc38adc786292096e80a3f45d1da99532d8c349e3e852",
-                "07d84d8efe92985be1e67f32429ced5a5053d20c57fcb6c7b36b7395310163a1"
+                "7fdd8009ff6abf7a9d48808a507baecd5b815c8947fc03faa921b68a0ac260e8",
+                "280e8f98eb3a45ba7647d3df812236494188bfedb2c1fafa0ac2fb2f47930c0c"
             ]
             self.assertEqual(len(layers), len(expected_layers))
             for i in range(len(expected_layers)):
diff --git a/src/confcom/setup.py b/src/confcom/setup.py
index 7fdb7b68c3b..7c25e79eeca 100644
--- a/src/confcom/setup.py
+++ b/src/confcom/setup.py
@@ -19,7 +19,7 @@
 
     logger.warn("Wheel is not available, disabling bdist_wheel hook")
 
-VERSION = "1.2.0"
+VERSION = "1.2.1"
 
 # The full list of classifiers is available at
 # https://pypi.python.org/pypi?%3Aaction=list_classifiers