diff --git a/services/core/java/com/android/server/wm/TaskFragment.java b/services/core/java/com/android/server/wm/TaskFragment.java
index 19e45ff024632..85e25ab077ea1 100644
--- a/services/core/java/com/android/server/wm/TaskFragment.java
+++ b/services/core/java/com/android/server/wm/TaskFragment.java
@@ -2243,8 +2243,8 @@ class TaskFragment extends WindowContainer<WindowContainer> {
                     // task, because they should not be affected by insets.
                     inOutConfig.smallestScreenWidthDp = (int) (0.5f
                             + Math.min(mTmpFullBounds.width(), mTmpFullBounds.height()) / density);
-                } else if (windowingMode == WINDOWING_MODE_MULTI_WINDOW
-                        && isEmbeddedWithBoundsOverride()) {
+                } else if (windowingMode == WINDOWING_MODE_MULTI_WINDOW && mIsEmbedded
+                        && insideParentBounds && !resolvedBounds.equals(parentBounds)) {
                     // For embedded TFs, the smallest width should be updated. Otherwise, inherit
                     // from the parent task would result in applications loaded wrong resource.
                     inOutConfig.smallestScreenWidthDp =