diff --git a/backends/arm/test/ops/test_layer_norm.py b/backends/arm/test/ops/test_layer_norm.py
index a4d3bc5adf0..502764fe053 100644
--- a/backends/arm/test/ops/test_layer_norm.py
+++ b/backends/arm/test/ops/test_layer_norm.py
@@ -157,9 +157,9 @@ def test_layer_norm_tosa_BI(
 
     # Numerical issues on FVP likely due to mul op, MLETORCH-521
     # Skip tests that require transposes.
-    @parameterized.expand(test_data_suite[:-2])
+    @parameterized.expand(test_data_suite)
     @unittest.expectedFailure
-    def test_layer_norm_u55_BI(
+    def test_layer_norm_u55_BI_xfails(
         self,
         test_name: str,
         test_data: torch.Tensor,
@@ -171,7 +171,8 @@ def test_layer_norm_u55_BI(
 
     # Numerical issues on FVP likely due to mul op, MLETORCH-521
     @parameterized.expand(test_data_suite[:-2])
-    def test_layer_norm_u85_BI_fvp(
+    @unittest.expectedFailure
+    def test_layer_norm_u85_BI_xfails(
         self,
         test_name: str,
         test_data: torch.Tensor,
@@ -182,7 +183,6 @@ def test_layer_norm_u85_BI_fvp(
         )
 
     @parameterized.expand(test_data_suite[-2:])
-    @unittest.skip  # Flaky
     def test_layer_norm_u85_BI(
         self,
         test_name: str,
diff --git a/examples/arm/setup.sh b/examples/arm/setup.sh
index 3d875e656b3..9e20d6043a9 100755
--- a/examples/arm/setup.sh
+++ b/examples/arm/setup.sh
@@ -92,7 +92,7 @@ tosa_reference_model_rev="c5570b79e90c3a36ab8c4ddb8ee3fbc2cd3f7c38"
 
 # vela
 vela_repo_url="https://review.mlplatform.org/ml/ethos-u/ethos-u-vela"
-vela_rev="a08fc18780827b5fefc814dd0162ee6317ce0ae7"
+vela_rev="5427dc7e9c1a4c7d554163290faeea75f168772d"
 
 ########
 ### Mandatory user args