diff --git a/builtin/am.c b/builtin/am.c
index 3c6efe2a46b..8cb7e72e6c5 100644
--- a/builtin/am.c
+++ b/builtin/am.c
@@ -1919,8 +1919,7 @@ static int fast_forward_to(struct tree *head, struct tree *remote, int reset)
 	opts.merge = 1;
 	opts.reset = reset;
 	if (!reset)
-		/* FIXME: Default should be to remove ignored files */
-		opts.preserve_ignored = 1;
+		opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 	opts.fn = twoway_merge;
 	init_tree_desc(&t[0], head->buffer, head->size);
 	init_tree_desc(&t[1], remote->buffer, remote->size);
diff --git a/builtin/clone.c b/builtin/clone.c
index e76c38e4e81..49edb4a2aaa 100644
--- a/builtin/clone.c
+++ b/builtin/clone.c
@@ -686,8 +686,7 @@ static int checkout(int submodule_progress)
 	opts.update = 1;
 	opts.merge = 1;
 	opts.clone = 1;
-	/* FIXME: Default should be to remove ignored files */
-	opts.preserve_ignored = 1;
+	opts.preserve_ignored = 0;
 	opts.fn = oneway_merge;
 	opts.verbose_update = (option_verbosity >= 0);
 	opts.src_index = &the_index;
diff --git a/builtin/merge.c b/builtin/merge.c
index 55aac869e5a..7f990e36651 100644
--- a/builtin/merge.c
+++ b/builtin/merge.c
@@ -680,8 +680,7 @@ static int read_tree_trivial(struct object_id *common, struct object_id *head,
 	opts.verbose_update = 1;
 	opts.trivial_merges_only = 1;
 	opts.merge = 1;
-	/* FIXME: Default should be to remove ignored files */
-	opts.preserve_ignored = 1;
+	opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 	trees[nr_trees] = parse_tree_indirect(common);
 	if (!trees[nr_trees++])
 		return -1;
diff --git a/builtin/reset.c b/builtin/reset.c
index 73477239146..9d1391335a1 100644
--- a/builtin/reset.c
+++ b/builtin/reset.c
@@ -66,8 +66,7 @@ static int reset_index(const char *ref, const struct object_id *oid, int reset_t
 	case KEEP:
 	case MERGE:
 		opts.update = 1;
-		/* FIXME: Default should be to remove ignored files */
-		opts.preserve_ignored = 1;
+		opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 		break;
 	case HARD:
 		opts.update = 1;
diff --git a/builtin/stash.c b/builtin/stash.c
index 78492013529..92ad3241270 100644
--- a/builtin/stash.c
+++ b/builtin/stash.c
@@ -258,8 +258,7 @@ static int reset_tree(struct object_id *i_tree, int update, int reset)
 	opts.reset = reset;
 	opts.update = update;
 	if (update && !reset)
-		/* FIXME: Default should be to remove ignored files */
-		opts.preserve_ignored = 1;
+		opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 	opts.fn = oneway_merge;
 
 	if (unpack_trees(nr_trees, t, &opts)) {
diff --git a/merge-ort.c b/merge-ort.c
index e5620bda212..5c443b2b00d 100644
--- a/merge-ort.c
+++ b/merge-ort.c
@@ -4044,7 +4044,7 @@ static int checkout(struct merge_options *opt,
 	unpack_opts.quiet = 0; /* FIXME: sequencer might want quiet? */
 	unpack_opts.verbose_update = (opt->verbosity > 2);
 	unpack_opts.fn = twoway_merge;
-	unpack_opts.preserve_ignored = 0; /* FIXME: !opts->overwrite_ignore*/
+	unpack_opts.preserve_ignored = 0; /* FIXME: !opts->overwrite_ignore */
 	parse_tree(prev);
 	init_tree_desc(&trees[0], prev->buffer, prev->size);
 	parse_tree(next);
diff --git a/reset.c b/reset.c
index cd344f47f13..5f69311b9f4 100644
--- a/reset.c
+++ b/reset.c
@@ -56,8 +56,7 @@ int reset_head(struct repository *r, struct object_id *oid, const char *action,
 	unpack_tree_opts.fn = reset_hard ? oneway_merge : twoway_merge;
 	unpack_tree_opts.update = 1;
 	unpack_tree_opts.merge = 1;
-	/* FIXME: Default should be to remove ignored files */
-	unpack_tree_opts.preserve_ignored = 1;
+	unpack_tree_opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 	init_checkout_metadata(&unpack_tree_opts.meta, switch_to_branch, oid, NULL);
 	if (!detach_head)
 		unpack_tree_opts.reset = 1;
diff --git a/sequencer.c b/sequencer.c
index 669ea15944c..05395db9e01 100644
--- a/sequencer.c
+++ b/sequencer.c
@@ -3698,8 +3698,7 @@ static int do_reset(struct repository *r,
 	unpack_tree_opts.fn = oneway_merge;
 	unpack_tree_opts.merge = 1;
 	unpack_tree_opts.update = 1;
-	/* FIXME: Default should be to remove ignored files */
-	unpack_tree_opts.preserve_ignored = 1;
+	unpack_tree_opts.preserve_ignored = 0; /* FIXME: !overwrite_ignore */
 	init_checkout_metadata(&unpack_tree_opts.meta, name, &oid, NULL);
 
 	if (repo_read_index_unmerged(r)) {
diff --git a/t/t7112-reset-submodule.sh b/t/t7112-reset-submodule.sh
index 19830d90365..a3e2413bc33 100755
--- a/t/t7112-reset-submodule.sh
+++ b/t/t7112-reset-submodule.sh
@@ -6,7 +6,6 @@ test_description='reset can handle submodules'
 . "$TEST_DIRECTORY"/lib-submodule-update.sh
 
 KNOWN_FAILURE_DIRECTORY_SUBMODULE_CONFLICTS=1
-KNOWN_FAILURE_SUBMODULE_OVERWRITE_IGNORED_UNTRACKED=1
 
 test_submodule_switch_recursing_with_args "reset --keep"
 
