diff --git a/.github/workflows/mkosi.yml b/.github/workflows/mkosi.yml
index 5a34e997db..d5f587f4ad 100644
--- a/.github/workflows/mkosi.yml
+++ b/.github/workflows/mkosi.yml
@@ -76,7 +76,7 @@ jobs:
 
     steps:
     - uses: actions/checkout@c85c95e3d7251135ab7dc9ce3241c5835cc595a9
-    - uses: systemd/mkosi@9ffcdac128c66935aa5d5a98633fa7498bce92d1
+    - uses: systemd/mkosi@0af3f8a35c3be0e54b20234be7ab478d25bcc740
 
     - name: Configure
       run: |
diff --git a/mkosi.presets/system/mkosi.extra/usr/lib/repart.d/20-root.conf b/mkosi.presets/system/mkosi.extra/usr/lib/repart.d/20-root.conf
index 2f92af248f..71eb9e38c4 100644
--- a/mkosi.presets/system/mkosi.extra/usr/lib/repart.d/20-root.conf
+++ b/mkosi.presets/system/mkosi.extra/usr/lib/repart.d/20-root.conf
@@ -4,3 +4,5 @@
 Type=root
 Format=btrfs
 SizeMinBytes=1G
+Subvolumes=/home /var
+MakeDirectories=/home /var
diff --git a/src/partition/repart.c b/src/partition/repart.c
index 7621d32a53..4410cad1e5 100644
--- a/src/partition/repart.c
+++ b/src/partition/repart.c
@@ -1756,16 +1756,14 @@ static int partition_read_definition(Partition *p, const char *path, const char
                                   "SizeMinBytes=/SizeMaxBytes= cannot be used with Verity=%s",
                                   verity_mode_to_string(p->verity));
 
-        if (!strv_isempty(p->subvolumes) && arg_offline != 0)
+        if (!strv_isempty(p->subvolumes) && arg_offline > 0)
                 return log_syntax(NULL, LOG_ERR, path, 1, SYNTHETIC_ERRNO(EOPNOTSUPP),
-                                  "Subvolumes= can only be used with --offline=no");
+                                  "Subvolumes= cannot be used with --offline=yes");
 
         /* Verity partitions are read only, let's imply the RO flag hence, unless explicitly configured otherwise. */
         if ((IN_SET(p->type.designator,
                     PARTITION_ROOT_VERITY,
-                    PARTITION_ROOT_VERITY_SIG,
-                    PARTITION_USR_VERITY,
-                    PARTITION_USR_VERITY_SIG) || p->verity != VERITY_OFF) && p->read_only < 0)
+                    PARTITION_USR_VERITY) || p->verity == VERITY_DATA) && p->read_only < 0)
                 p->read_only = true;
 
         /* Default to "growfs" on, unless read-only */
@@ -3494,7 +3492,7 @@ static int partition_target_prepare(
 
         if (arg_offline <= 0) {
                 r = loop_device_make(whole_fd, O_RDWR, p->offset, size, context->sector_size, 0, LOCK_EX, &d);
-                if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r))))
+                if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r)) || !strv_isempty(p->subvolumes)))
                         return log_error_errno(r, "Failed to make loopback device of future partition %" PRIu64 ": %m", p->partno);
                 if (r >= 0) {
                         t->loop = TAKE_PTR(d);
@@ -6022,7 +6020,7 @@ static int context_minimize(Context *context) {
 
                         if (arg_offline <= 0) {
                                 r = loop_device_make(fd, O_RDWR, 0, UINT64_MAX, context->sector_size, 0, LOCK_EX, &d);
-                                if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r))))
+                                if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r)) || !strv_isempty(p->subvolumes)))
                                         return log_error_errno(r, "Failed to make loopback device of %s: %m", temp);
                         }
 
@@ -6125,7 +6123,7 @@ static int context_minimize(Context *context) {
 
                 if (arg_offline <= 0) {
                         r = loop_device_make(fd, O_RDWR, 0, UINT64_MAX, context->sector_size, 0, LOCK_EX, &d);
-                        if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r))))
+                        if (r < 0 && (arg_offline == 0 || (r != -ENOENT && !ERRNO_IS_PRIVILEGE(r)) || !strv_isempty(p->subvolumes)))
                                 return log_error_errno(r, "Failed to make loopback device of %s: %m", temp);
                 }