diff --git a/.devcontainer/dev/devcontainer.json b/.devcontainer/dev/devcontainer.json
index 12a7c197f6e..2e5d5ec2d45 100644
--- a/.devcontainer/dev/devcontainer.json
+++ b/.devcontainer/dev/devcontainer.json
@@ -1,6 +1,6 @@
 {
   "name": "Development",
-  "image": "aztecprotocol/devbox:1.1",
+  "image": "aztecprotocol/devbox:1.2",
   "features": {
     // Use custom fork with noble added to list of supported distros.
     "./docker-in-docker": {}
diff --git a/build-images/Earthfile b/build-images/Earthfile
index 08664afe3f0..c9f8ab865ad 100644
--- a/build-images/Earthfile
+++ b/build-images/Earthfile
@@ -233,6 +233,7 @@ basebox:
           tmux \
           vim \
           zsh \
+          inotify-tools \
       && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
 
   # Install earthly.
@@ -323,9 +324,9 @@ devbox:
   CMD ["/bin/zsh"]
 
   ARG TARGETARCH
-  SAVE IMAGE --push aztecprotocol/devbox:1.1-$TARGETARCH
+  SAVE IMAGE --push aztecprotocol/devbox:1.2-$TARGETARCH
   # Save it without the arch tag as this is what's referenced in devcontainer.json
-  SAVE IMAGE aztecprotocol/devbox:1.1
+  SAVE IMAGE aztecprotocol/devbox:1.2
 
 devbox-manifest:
   LET VERSION = 1.1