diff --git a/.redhat-ci.yml b/.redhat-ci.yml
index d40d7bda..0b15919c 100644
--- a/.redhat-ci.yml
+++ b/.redhat-ci.yml
@@ -20,7 +20,9 @@ build:
       --enable-installed-tests
       --enable-gtk-doc
 
+# ⚠ Build ostree from git for https://github.com/ostreedev/ostree/issues/758
 tests:
+    - sudo dnf -y builddep ostree && git clone --depth=1 https://github.com/ostreedev/ostree ostree-git && (cd ostree-git && ./autogen.sh --prefix=/usr --libdir=/usr/lib64 && make -j 8 && sudo make install) && rm ostree-git -rf
     - make check
     - gnome-desktop-testing-runner rpm-ostree
     - sudo --user=testuser gnome-desktop-testing-runner rpm-ostree
diff --git a/tests/common/libtest.sh b/tests/common/libtest.sh
index 7042e1ce..bdffbb66 100644
--- a/tests/common/libtest.sh
+++ b/tests/common/libtest.sh
@@ -68,6 +68,17 @@ export G_DEBUG=fatal-warnings
 # easily clean up.
 export OSTREE_SYSROOT_DEBUG=mutable-deployments
 
+# See comment in ot-builtin-commit.c and https://github.com/ostreedev/ostree/issues/758
+# Also keep this in sync with the bits in libostreetest.c
+case $(stat -f --printf '%T' /) in
+    overlayfs)
+        echo "overlayfs found; enabling OSTREE_NO_XATTRS"
+        ostree --version
+        export OSTREE_SYSROOT_DEBUG="${OSTREE_SYSROOT_DEBUG},no-xattrs"
+        export OSTREE_NO_XATTRS=1 ;;
+    *) echo "Not using overlayfs" ;;
+esac
+
 export TEST_GPG_KEYID="472CDAFA"
 
 # GPG when creating signatures demands a writable
@@ -145,6 +156,16 @@ assert_file_empty() {
     fi
 }
 
+# A wrapper which also possibly disables xattrs for CI testing
+ostree_repo_init() {
+    repo=$1
+    shift
+    ${CMD_PREFIX} ostree --repo=${repo} init "$@"
+    if test -n "${OSTREE_NO_XATTRS:-}"; then
+        echo -e 'disable-xattrs=true\n' >> ${repo}/config
+    fi
+}
+
 setup_test_repository () {
     mode=$1
     shift
@@ -152,23 +173,13 @@ setup_test_repository () {
     oldpwd=`pwd`
 
     cd ${test_tmpdir}
-    mkdir repo
-    cd repo
-    ot_repo="--repo=`pwd`"
-    export OSTREE="${CMD_PREFIX} ostree ${ot_repo}"
-    if test -n "$mode"; then
-	$OSTREE init --mode=${mode}
+    if test -n "${mode}"; then
+        ostree_repo_init repo --mode=${mode}
     else
-	$OSTREE init
+        ostree_repo_init repo
     fi
-
-    cd ${test_tmpdir}
-    mkdir files
-    cd files
-    ot_files=`pwd`
-    export ht_files
-    ln -s nosuchfile somelink
-    echo first > firstfile
+    ot_repo="--repo=$(pwd)/repo"
+    export OSTREE="${CMD_PREFIX} ostree ${ot_repo}"
 
     cd ${test_tmpdir}/files
     $OSTREE commit -b test2 -s "Test Commit 1" -m "Commit body first"
@@ -209,8 +220,7 @@ setup_fake_remote_repo1() {
     oldpwd=`pwd`
     mkdir ostree-srv
     cd ostree-srv
-    mkdir gnomerepo
-    ${CMD_PREFIX} ostree --repo=gnomerepo init --mode=$mode
+    ostree_repo_init gnomerepo --mode=$mode
     mkdir gnomerepo-files
     cd gnomerepo-files 
     echo first > firstfile
@@ -266,9 +276,9 @@ setup_os_repository () {
     cd ${test_tmpdir}
     mkdir testos-repo
     if test -n "$mode"; then
-	ostree --repo=testos-repo init --mode=${mode}
+	      ostree_repo_init testos-repo --mode=${mode}
     else
-	ostree --repo=testos-repo init
+	      ostree_repo_init testos-repo
     fi
 
     cd ${test_tmpdir}
diff --git a/tests/utils/setup-session.sh b/tests/utils/setup-session.sh
index 35fe6364..9da521ea 100755
--- a/tests/utils/setup-session.sh
+++ b/tests/utils/setup-session.sh
@@ -62,8 +62,4 @@ EOF
 # Tell rpm-ostree to connect to the session bus instead of system
 export RPMOSTREE_USE_SESSION_BUS=1
 
-# Don't flag deployments as immutable so that test harnesses can
-# easily clean up.
-export OSTREE_SYSROOT_DEBUG=mutable-deployments
-
 exec dbus-run-session --config-file=${test_tmpdir}/session.conf $@