diff --git a/core/java/android/view/WindowLayout.java b/core/java/android/view/WindowLayout.java
index 9b6b2b906e8ea..0941ee8a714f0 100644
--- a/core/java/android/view/WindowLayout.java
+++ b/core/java/android/view/WindowLayout.java
@@ -16,8 +16,6 @@
 
 package android.view;
 
-import static android.view.Gravity.DISPLAY_CLIP_HORIZONTAL;
-import static android.view.Gravity.DISPLAY_CLIP_VERTICAL;
 import static android.view.InsetsState.ITYPE_IME;
 import static android.view.InsetsState.ITYPE_NAVIGATION_BAR;
 import static android.view.InsetsState.ITYPE_STATUS_BAR;
@@ -275,17 +273,9 @@ public class WindowLayout {
             Gravity.applyDisplay(attrs.gravity, outDisplayFrame, outFrame);
         }
 
-        if (extendedByCutout && !displayCutoutSafe.contains(outFrame)) {
-            mTempRect.set(outFrame);
-
-            // Move the frame into displayCutoutSafe.
-            final int clipFlags = DISPLAY_CLIP_VERTICAL | DISPLAY_CLIP_HORIZONTAL;
-            Gravity.applyDisplay(attrs.gravity & ~clipFlags, displayCutoutSafe,
+        if (extendedByCutout) {
+            extendFrameByCutout(attrs.gravity, displayCutoutSafe, outDisplayFrame, outFrame,
                     mTempRect);
-
-            if (mTempRect.intersect(outDisplayFrame)) {
-                outFrame.union(mTempRect);
-            }
         }
 
         if (DEBUG) Log.d(TAG, "computeFrames " + attrs.getTitle()
@@ -301,6 +291,21 @@ public class WindowLayout {
                 + " requestedVisibilities=" + requestedVisibilities);
     }
 
+    public static void extendFrameByCutout(int gravity, Rect displayCutoutSafe,
+            Rect displayFrame, Rect inOutFrame, Rect tempRect) {
+        if (displayCutoutSafe.contains(inOutFrame)) {
+            return;
+        }
+        tempRect.set(inOutFrame);
+
+        // Move the frame into displayCutoutSafe.
+        Gravity.applyDisplay(0 /* gravity */, displayCutoutSafe, tempRect);
+
+        if (tempRect.intersect(displayFrame)) {
+            inOutFrame.union(tempRect);
+        }
+    }
+
     public static void computeSurfaceSize(WindowManager.LayoutParams attrs, Rect maxBounds,
             int requestedWidth, int requestedHeight, Rect winFrame, boolean dragResizing,
             Point outSurfaceSize) {
diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index cff8b93ac9472..b75a65f9aba2e 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -46,6 +46,7 @@ import static android.view.WindowManager.LayoutParams.FLAG_NOT_TOUCHABLE;
 import static android.view.WindowManager.LayoutParams.LAYOUT_IN_DISPLAY_CUTOUT_MODE_ALWAYS;
 import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_FORCE_DRAW_BAR_BACKGROUNDS;
 import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_INTERCEPT_GLOBAL_DRAG_AND_DROP;
+import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_LAYOUT_SIZE_EXTENDED_BY_CUTOUT;
 import static android.view.WindowManager.LayoutParams.PRIVATE_FLAG_TRUSTED_OVERLAY;
 import static android.view.WindowManager.LayoutParams.TYPE_BASE_APPLICATION;
 import static android.view.WindowManager.LayoutParams.TYPE_NAVIGATION_BAR;
@@ -1165,7 +1166,8 @@ public class DisplayPolicy {
                                             continue;
                                         }
                                         calculateInsetsFrame(displayFrames, win, inOutFrame,
-                                                provider.source, provider.insetsSize
+                                                provider.source, provider.insetsSize,
+                                                lp.privateFlags, lp.gravity
                                         );
                                     }
                                 }
@@ -1240,21 +1242,25 @@ public class DisplayPolicy {
                                 provider.insetsSize != null
                                         ? (displayFrames, windowContainer, inOutFrame) -> {
                                             inOutFrame.inset(win.mGivenContentInsets);
+                                            final LayoutParams lp =
+                                                    win.mAttrs.forRotation(displayFrames.mRotation);
                                             final InsetsFrameProvider ifp =
-                                                    win.mAttrs.forRotation(displayFrames.mRotation)
-                                                            .providedInsets[index];
+                                                    lp.providedInsets[index];
                                             calculateInsetsFrame(displayFrames, windowContainer,
-                                                    inOutFrame, ifp.source, ifp.insetsSize);
+                                                    inOutFrame, ifp.source, ifp.insetsSize,
+                                                    lp.privateFlags, lp.gravity);
                                         } : null;
                         final TriConsumer<DisplayFrames, WindowContainer, Rect> imeFrameProvider =
                                 provider.imeInsetsSize != null
                                         ? (displayFrames, windowContainer, inOutFrame) -> {
                                             inOutFrame.inset(win.mGivenContentInsets);
+                                            final LayoutParams lp =
+                                                    win.mAttrs.forRotation(displayFrames.mRotation);
                                             final InsetsFrameProvider ifp =
-                                                    win.mAttrs.forRotation(displayFrames.mRotation)
-                                                            .providedInsets[index];
+                                                    lp.providedInsets[index];
                                             calculateInsetsFrame(displayFrames, windowContainer,
-                                                    inOutFrame, ifp.source, ifp.imeInsetsSize);
+                                                    inOutFrame, ifp.source, ifp.imeInsetsSize,
+                                                    lp.privateFlags, lp.gravity);
                                         } : null;
                         mDisplayContent.setInsetProvider(provider.type, win, frameProvider,
                                 imeFrameProvider);
@@ -1266,11 +1272,15 @@ public class DisplayPolicy {
     }
 
     private void calculateInsetsFrame(DisplayFrames df, WindowContainer container, Rect inOutFrame,
-            int source, Insets insetsSize) {
+            int source, Insets insetsSize, @LayoutParams.PrivateFlags int privateFlags,
+            int windowGravity) {
+        boolean extendByCutout = false;
         if (source == InsetsFrameProvider.SOURCE_DISPLAY) {
             inOutFrame.set(df.mUnrestricted);
         } else if (source == InsetsFrameProvider.SOURCE_CONTAINER_BOUNDS) {
             inOutFrame.set(container.getBounds());
+        } else {
+            extendByCutout = (privateFlags & PRIVATE_FLAG_LAYOUT_SIZE_EXTENDED_BY_CUTOUT) != 0;
         }
         if (insetsSize == null) {
             return;
@@ -1288,6 +1298,11 @@ public class DisplayPolicy {
         } else {
             inOutFrame.setEmpty();
         }
+
+        if (extendByCutout) {
+            WindowLayout.extendFrameByCutout(windowGravity, df.mDisplayCutoutSafe,
+                    df.mUnrestricted, inOutFrame, sTmpRect);
+        }
     }
 
     @WindowManagerPolicy.AltBarPosition