diff --git a/build_tools/build_test_cpp.ps1 b/build_tools/build_test_cpp.ps1
index f7c3b7db2..f508ce5ff 100644
--- a/build_tools/build_test_cpp.ps1
+++ b/build_tools/build_test_cpp.ps1
@@ -87,11 +87,6 @@ $CMAKE_ARGS = @(
 if ($llvm_install_dir -and (Test-Path "$llvm_install_dir"))
 {
     echo "using existing llvm install @ $llvm_install_dir"
-    # TODO(max): send IREE a fix for this
-    # target_compile_definitions may only set INTERFACE properties on IMPORTED
-    $cmake_file = Resolve-Path -Path "$iree_dir/compiler/src/iree/compiler/API/CMakeLists.txt"
-    (Get-Content $cmake_file).Replace("if(MSVC)", "get_target_property(_imported `$`{_object_lib} IMPORTED)`n  if(MSVC AND NOT `$`{_imported})") `
-        | Out-File -encoding ASCII $cmake_file
     $CMAKE_ARGS += @(
         "-DIREE_BUILD_BUNDLED_LLVM=OFF"
         "-DClang_DIR=$llvm_install_dir/lib/cmake/clang"
diff --git a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad.mlir b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad.mlir
index 99f32c343..9c1be1ef0 100644
--- a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad.mlir
+++ b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad.mlir
@@ -53,7 +53,7 @@ module attributes { transform.with_named_sequence } {
     %padded, %pad, %__ = transform.structured.pad %tiled_matmul {
       padding_values=[0 : i32, 0 : i32, 0 : i32],
       padding_dimensions=[0, 1, 2],
-      pack_paddings=[1, 1, 1],
+      nofold_flags=[1, 1, 1],
       copy_back_op="linalg.copy"
     } : (!transform.any_op) -> (!transform.any_op, !transform.any_op, !transform.any_op)
     %pad_dps = transform.structured.rewrite_in_destination_passing_style %pad : (!transform.any_op) -> !transform.any_op
@@ -89,7 +89,7 @@ module attributes { transform.with_named_sequence } {
     %padded_1, %pad_1, %_ = transform.structured.pad %tiled_matmul_1 {
       padding_values=[0 : i32, 0 : i32, 0 : i32],
       padding_dimensions=[0, 1, 2],
-      pack_paddings=[0, 0, 1],
+      nofold_flags=[0, 0, 1],
       copy_back_op="linalg.copy"
     } : (!transform.any_op) -> (!transform.any_op, !transform.any_op, !transform.any_op)
     %pad_1_dps = transform.structured.rewrite_in_destination_passing_style %pad_1 : (!transform.any_op) -> !transform.any_op
@@ -114,7 +114,7 @@ module attributes { transform.with_named_sequence } {
     %padded_reduction, %pad_reduction, %___ = transform.structured.pad %tiled_reduction {
       padding_values=[0 : i32, 0 : i32, 0 : i32],
       padding_dimensions=[0, 1, 2],
-      pack_paddings=[1, 1, 0],
+      nofold_flags=[1, 1, 0],
       copy_back_op="linalg.copy"
     } : (!transform.any_op) -> (!transform.any_op, !transform.any_op, !transform.any_op)
     %pad_2_dps = transform.structured.rewrite_in_destination_passing_style %pad_reduction : (!transform.any_op) -> !transform.any_op
diff --git a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack.mlir b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack.mlir
index c0b8e6ed1..c4b0ed57c 100644
--- a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack.mlir
+++ b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack.mlir
@@ -52,7 +52,7 @@ module attributes { transform.with_named_sequence } {
     %padded, %pad, %__ = transform.structured.pad %tiled_matmul {
       padding_values=[0 : i32, 0 : i32, 0 : i32],
       padding_dimensions=[0, 1, 2],
-      pack_paddings=[1, 1, 1],
+      nofold_flags=[1, 1, 1],
       copy_back_op="linalg.copy"
     } : (!transform.any_op) -> (!transform.any_op, !transform.any_op, !transform.any_op)
     %pad_dps = transform.structured.rewrite_in_destination_passing_style %pad : (!transform.any_op) -> !transform.any_op
diff --git a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack_peel.mlir b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack_peel.mlir
index 829fe5995..0fa6dabd1 100644
--- a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack_peel.mlir
+++ b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Test/transform_dialect/matmul_fill_spec_pad_pack_peel.mlir
@@ -61,7 +61,7 @@ module attributes { transform.with_named_sequence } {
       padding_values=[0 : i32, 0 : i32, 0 : i32],
       padding_dimensions=[0, 1, 2],
       pad_to_multiple_of=[64, 64, 64],
-      pack_paddings=[1, 1, 1],
+      nofold_flags=[1, 1, 1],
       copy_back_op="linalg.copy"
     } : (!transform.any_op) -> (!transform.any_op, !transform.any_op, !transform.any_op)
     %pad_dps = transform.structured.rewrite_in_destination_passing_style %pad : (!transform.any_op) -> !transform.any_op
diff --git a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/AMDAIEPad.cpp b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/AMDAIEPad.cpp
index f6e5a80c9..36f6cecd4 100644
--- a/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/AMDAIEPad.cpp
+++ b/compiler/plugins/target/AMD-AIE/iree-amd-aie/Transforms/AMDAIEPad.cpp
@@ -62,11 +62,11 @@ getFirstLevelLinalgPaddingOptions(IRRewriter &rewriter,
   // For the operations with 2 input and 1 output operands, the packPadding
   // option should be [1, 1, 1]. For `linalg.conv_2d_nhwc_hwcf_q` op, there are
   // 5 operands, and the packPadding options should be [1, 1, 0, 0, 1].
-  SmallVector<bool> packPaddings(linalgOp->getNumOperands(), false);
-  packPaddings[0] = true;
-  packPaddings[1] = true;
-  packPaddings.back() = true;
-  options.packPaddings = packPaddings;
+  SmallVector<bool> nofoldFlags(linalgOp->getNumOperands(), false);
+  nofoldFlags[0] = true;
+  nofoldFlags[1] = true;
+  nofoldFlags.back() = true;
+  options.nofoldFlags = nofoldFlags;
 
   options.paddingDimensions = getPaddingDimensions(linalgOp);
   SmallVector<int64_t> padToMultipleOf(options.paddingDimensions.size(), 1);
@@ -87,9 +87,9 @@ getSecondLevelLinalgPaddingOptions(IRRewriter &rewriter,
   options.paddingValues = paddingValues;
 
   // In the second level, we only pad the output operand.
-  SmallVector<bool> packPaddings(linalgOp->getNumOperands(), false);
-  packPaddings.back() = true;
-  options.packPaddings = packPaddings;
+  SmallVector<bool> nofoldFlags(linalgOp->getNumOperands(), false);
+  nofoldFlags.back() = true;
+  options.nofoldFlags = nofoldFlags;
 
   options.paddingDimensions = getPaddingDimensions(linalgOp);
   SmallVector<int64_t> padToMultipleOf(options.paddingDimensions.size(), 1);
@@ -110,10 +110,10 @@ getThirdLevelLinalgPaddingOptions(IRRewriter &rewriter,
   options.paddingValues = paddingValues;
 
   // In the third level, we only pad the input operands.
-  SmallVector<bool> packPaddings(linalgOp->getNumOperands(), false);
-  packPaddings[0] = true;
-  packPaddings[1] = true;
-  options.packPaddings = packPaddings;
+  SmallVector<bool> nofoldFlags(linalgOp->getNumOperands(), false);
+  nofoldFlags[0] = true;
+  nofoldFlags[1] = true;
+  options.nofoldFlags = nofoldFlags;
 
   options.paddingDimensions = getPaddingDimensions(linalgOp);
   SmallVector<int64_t> padToMultipleOf(options.paddingDimensions.size(), 1);
diff --git a/third_party/iree b/third_party/iree
index 2963600a6..05bbcf138 160000
--- a/third_party/iree
+++ b/third_party/iree
@@ -1 +1 @@
-Subproject commit 2963600a6f5a3d7a4a998ce8c7d4f9e46391c0cc
+Subproject commit 05bbcf1385146d075829cd940a52bf06961614d0