diff --git a/0001-meson-create-empty-etc-systemd-system-during-install.patch b/0001-meson-create-empty-etc-systemd-system-during-install.patch
deleted file mode 100644
index 73a7ee9..0000000
--- a/0001-meson-create-empty-etc-systemd-system-during-install.patch
+++ /dev/null
@@ -1,33 +0,0 @@
-From 4c071d7f2a269f1c7b25402a272f90701b8a070c Mon Sep 17 00:00:00 2001
-From: =?UTF-8?q?Zbigniew=20J=C4=99drzejewski-Szmek?= <zbyszek@in.waw.pl>
-Date: Mon, 5 Aug 2019 15:02:13 +0200
-Subject: [PATCH] meson: create (empty) /etc/systemd/system during installation
-
-We explicitly create /etc/systemd/user and other parts of the basic directory
-tree. I think we should create /etc/systemd/system too. (The alternative would
-be to not create those other directories too, but I think it's nice to have
-the basic directory structure in place after installation.)
-
-https://bugzilla.redhat.com/show_bug.cgi?id=1737362
----
- src/core/meson.build | 7 +++----
- 1 file changed, 3 insertions(+), 4 deletions(-)
-
-diff --git a/src/core/meson.build b/src/core/meson.build
-index 267d65a3b2..fb6820e109 100644
---- a/src/core/meson.build
-+++ b/src/core/meson.build
-@@ -212,7 +212,6 @@ meson.add_install_script('sh', '-c', mkdir_p.format(systemsleepdir))
- meson.add_install_script('sh', '-c', mkdir_p.format(systemgeneratordir))
- meson.add_install_script('sh', '-c', mkdir_p.format(usergeneratordir))
- 
--meson.add_install_script('sh', '-c',
--                         mkdir_p.format(join_paths(pkgsysconfdir, 'user')))
--meson.add_install_script('sh', '-c',
--                         mkdir_p.format(join_paths(sysconfdir, 'xdg/systemd')))
-+meson.add_install_script('sh', '-c', mkdir_p.format(join_paths(pkgsysconfdir, 'system')))
-+meson.add_install_script('sh', '-c', mkdir_p.format(join_paths(pkgsysconfdir, 'user')))
-+meson.add_install_script('sh', '-c', mkdir_p.format(join_paths(sysconfdir, 'xdg/systemd')))
--- 
-2.22.0
-
diff --git a/464a73411c13596a130a7a8f0ac00ca728e5f69e.patch b/464a73411c13596a130a7a8f0ac00ca728e5f69e.patch
new file mode 100644
index 0000000..4de01c4
--- /dev/null
+++ b/464a73411c13596a130a7a8f0ac00ca728e5f69e.patch
@@ -0,0 +1,40 @@
+From 464a73411c13596a130a7a8f0ac00ca728e5f69e Mon Sep 17 00:00:00 2001
+From: =?UTF-8?q?Zbigniew=20J=C4=99drzejewski-Szmek?= <zbyszek@in.waw.pl>
+Date: Wed, 14 Aug 2019 15:57:42 +0200
+Subject: [PATCH] udev: use bfq as the default scheduler
+
+As requested in https://bugzilla.redhat.com/show_bug.cgi?id=1738828.
+Test results are that bfq seems to behave better and more consistently on
+typical hardware. The kernel does not have a configuration option to set
+the default scheduler, and it currently needs to be set by userspace.
+
+See the bug for more discussion and links.
+---
+ rules/60-block-scheduler.rules | 5 +++++
+ rules/meson.build              | 1 +
+ 2 files changed, 6 insertions(+)
+ create mode 100644 rules/60-block-scheduler.rules
+
+diff --git a/rules/60-block-scheduler.rules b/rules/60-block-scheduler.rules
+new file mode 100644
+index 00000000000..480b941761f
+--- /dev/null
++++ b/rules/60-block-scheduler.rules
+@@ -0,0 +1,5 @@
++# do not edit this file, it will be overwritten on update
++
++ACTION=="add", SUBSYSTEM=="block", \
++  KERNEL=="mmcblk*[0-9]|msblk*[0-9]|mspblk*[0-9]|sd*[!0-9]|sr*", \
++  ATTR{queue/scheduler}="bfq"
+diff --git a/rules/meson.build b/rules/meson.build
+index b6a32ba77e2..1da958b4d46 100644
+--- a/rules/meson.build
++++ b/rules/meson.build
+@@ -2,6 +2,7 @@
+ 
+ rules = files('''
+         60-block.rules
++        60-block-scheduler.rules
+         60-cdrom_id.rules
+         60-drm.rules
+         60-evdev.rules
diff --git a/sources b/sources
index d6f6f95..141ae4d 100644
--- a/sources
+++ b/sources
@@ -1 +1 @@
-SHA512 (systemd-243-rc1.tar.gz) = 6626d7fd5781578d01a30c0d2647a293668d0819f2f85ce78a6aaf62ae1aa4b2c687cf237ca833c5befbc00321a344ff5ca56747cedc6ce00cd0f51c71dd25ff
+SHA512 (systemd-243-rc2.tar.gz) = 7e9b996c1eeb299fb971f2fd4a39fa62c7cc9178bacaaae6c168008dec438f392b949deb72d08f27060b3cde54b46b70f6a18b1bc70725a56ca2a28a1f96b6a1
diff --git a/systemd.spec b/systemd.spec
index 3eed8c1..75d826b 100644
--- a/systemd.spec
+++ b/systemd.spec
@@ -14,8 +14,8 @@
 
 Name:           systemd
 Url:            https://www.freedesktop.org/wiki/Software/systemd
-Version:        243~rc1
-Release:        2%{?commit:.git%{shortcommit}}%{?dist}
+Version:        243~rc2
+Release:        1%{?commit:.git%{shortcommit}}%{?dist}
 # For a breakdown of the licensing, see README
 License:        LGPLv2+ and MIT and GPLv2+
 Summary:        System and Service Manager
@@ -52,9 +52,9 @@ i=1; for j in 00*patch; do printf "Patch%04d:      %s\n" $i $j; i=$((i+1));done|
 GIT_DIR=../../src/systemd/.git git diffab -M v233..master@{2017-06-15} -- hwdb/[67]* hwdb/parse_hwdb.py > hwdb.patch
 %endif
 
-# Create and therefore own and provide /etc/systemd/system
-# https://github.com/systemd/systemd/pull/13267
-Patch0001:      0001-meson-create-empty-etc-systemd-system-during-install.patch
+# https://bugzilla.redhat.com/show_bug.cgi?id=1738828
+Patch0001:      https://github.com/keszybz/systemd/commit/464a73411c13596a130a7a8f0ac00ca728e5f69e.patch
+
 Patch0002:      0002-Revert-units-set-NoNewPrivileges-for-all-long-runnin.patch
 
 Patch0998:      0998-resolved-create-etc-resolv.conf-symlink-at-runtime.patch
@@ -335,7 +335,6 @@ CONFIGURE_OPTS=(
         -Db_lto=true
         -Db_ndebug=false
         -Dman=true
-        -Ddefault-hierarchy=hybrid
         -Dversion-tag=v%{version}-%{release}
 )
 
@@ -698,6 +697,13 @@ fi
 %files tests -f .file-list-tests
 
 %changelog
+* Thu Aug 22 2019 Zbigniew Jędrzejewski-Szmek <zbyszek@in.waw.pl> - 243~rc2-1
+- Update to latest pre-release. Fixes #1740113, #1717712.
+- The default scheduler for disks is set to BFQ (1738828)
+- The default cgroup hierarchy is set to unified (cgroups v2) (#1732114).
+  Use systemd.unified-cgroup-hierachy=no on the kernel command line to revert.
+  See https://fedoraproject.org/wiki/Changes/CGroupsV2.
+
 * Wed Aug 07 2019 Adam Williamson <awilliam@redhat.com> - 243~rc1-2
 - Backport PR #1737362 so we own /etc/systemd/system again (#1737362)