diff --git a/services/core/java/com/android/server/pm/ApexManager.java b/services/core/java/com/android/server/pm/ApexManager.java
index 73dc8dc78fbfe..53bf7b8aa8ae6 100644
--- a/services/core/java/com/android/server/pm/ApexManager.java
+++ b/services/core/java/com/android/server/pm/ApexManager.java
@@ -1051,13 +1051,18 @@ public abstract class ApexManager {
                 final ParsedPackage parsedPackage2 = packageParser.parsePackage(
                         new File(apexInfo.modulePath), flags, /* useCaches= */ false);
                 final PackageInfo finalApexPkg = PackageInfoWithoutStateUtils.generate(
-                        parsedPackage, apexInfo, flags);
+                        parsedPackage2, apexInfo, flags);
                 // Installation was successful, time to update mAllPackagesCache
                 synchronized (mLock) {
-                    for (int i = 0, size = mAllPackagesCache.size(); i < size; i++) {
-                        if (mAllPackagesCache.get(i).equals(existingApexPkg)) {
-                            mAllPackagesCache.set(i, finalApexPkg);
-                            break;
+                    if (isFactory(existingApexPkg)) {
+                        existingApexPkg.applicationInfo.flags &= ~ApplicationInfo.FLAG_INSTALLED;
+                        mAllPackagesCache.add(finalApexPkg);
+                    } else {
+                        for (int i = 0, size = mAllPackagesCache.size(); i < size; i++) {
+                            if (mAllPackagesCache.get(i).equals(existingApexPkg)) {
+                                mAllPackagesCache.set(i, finalApexPkg);
+                                break;
+                            }
                         }
                     }
                 }
diff --git a/services/core/java/com/android/server/pm/PackageManagerService.java b/services/core/java/com/android/server/pm/PackageManagerService.java
index 0a7053c896d05..af3cb5bbe0cbc 100644
--- a/services/core/java/com/android/server/pm/PackageManagerService.java
+++ b/services/core/java/com/android/server/pm/PackageManagerService.java
@@ -17362,6 +17362,7 @@ public class PackageManagerService extends IPackageManager.Stub
         } catch (PackageManagerException e) {
             request.installResult.setError("APEX installation failed", e);
         }
+        invalidatePackageInfoCache();
         notifyInstallObserver(request.installResult, request.args.observer);
     }
 
diff --git a/services/tests/servicestests/src/com/android/server/pm/ApexManagerTest.java b/services/tests/servicestests/src/com/android/server/pm/ApexManagerTest.java
index fb768a8156248..8b8a7e631caff 100644
--- a/services/tests/servicestests/src/com/android/server/pm/ApexManagerTest.java
+++ b/services/tests/servicestests/src/com/android/server/pm/ApexManagerTest.java
@@ -37,6 +37,7 @@ import android.apex.ApexSessionInfo;
 import android.apex.ApexSessionParams;
 import android.apex.IApexService;
 import android.content.Context;
+import android.content.pm.ApplicationInfo;
 import android.content.pm.PackageInfo;
 import android.os.RemoteException;
 import android.platform.test.annotations.Presubmit;
@@ -349,9 +350,9 @@ public class ApexManagerTest {
     }
 
     @Test
-    public void testInstallPackage() throws Exception {
+    public void testInstallPackage_activeOnSystem() throws Exception {
         ApexInfo activeApexInfo = createApexInfo("test.apex_rebootless", 1, /* isActive= */ true,
-                /* isFactory= */ false, extractResource("test.apex_rebootless_v1",
+                /* isFactory= */ true, extractResource("test.apex_rebootless_v1",
                   "test.rebootless_apex_v1.apex"));
         when(mApexService.getAllPackages()).thenReturn(new ApexInfo[]{activeApexInfo});
         mApexManager.scanApexPackagesTraced(mPackageParser2,
@@ -369,6 +370,55 @@ public class ApexManagerTest {
                 ApexManager.MATCH_ACTIVE_PACKAGE);
         assertThat(newInfo.applicationInfo.sourceDir).isEqualTo(finalApex.getAbsolutePath());
         assertThat(newInfo.applicationInfo.longVersionCode).isEqualTo(2);
+        assertThat(newInfo.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM).isEqualTo(0);
+        assertThat(newInfo.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED)
+            .isEqualTo(ApplicationInfo.FLAG_INSTALLED);
+
+        PackageInfo factoryInfo = mApexManager.getPackageInfo("test.apex.rebootless",
+                ApexManager.MATCH_FACTORY_PACKAGE);
+        assertThat(factoryInfo.applicationInfo.sourceDir).isEqualTo(activeApexInfo.modulePath);
+        assertThat(factoryInfo.applicationInfo.longVersionCode).isEqualTo(1);
+        assertThat(factoryInfo.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM)
+            .isEqualTo(ApplicationInfo.FLAG_SYSTEM);
+        assertThat(factoryInfo.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED).isEqualTo(0);
+    }
+
+    @Test
+    public void testInstallPackage_activeOnData() throws Exception {
+        ApexInfo factoryApexInfo = createApexInfo("test.apex_rebootless", 1, /* isActive= */ false,
+                /* isFactory= */ true, extractResource("test.apex_rebootless_v1",
+                  "test.rebootless_apex_v1.apex"));
+        ApexInfo activeApexInfo = createApexInfo("test.apex_rebootless", 1, /* isActive= */ true,
+                /* isFactory= */ false, extractResource("test.apex.rebootless@1",
+                  "test.rebootless_apex_v1.apex"));
+        when(mApexService.getAllPackages())
+                .thenReturn(new ApexInfo[]{factoryApexInfo, activeApexInfo});
+        mApexManager.scanApexPackagesTraced(mPackageParser2,
+                ParallelPackageParser.makeExecutorService());
+
+        File finalApex = extractResource("test.rebootles_apex_v2", "test.rebootless_apex_v2.apex");
+        ApexInfo newApexInfo = createApexInfo("test.apex_rebootless", 2, /* isActive= */ true,
+                /* isFactory= */ false, finalApex);
+        when(mApexService.installAndActivatePackage(anyString())).thenReturn(newApexInfo);
+
+        File installedApex = extractResource("installed", "test.rebootless_apex_v2.apex");
+        mApexManager.installPackage(installedApex, mPackageParser2);
+
+        PackageInfo newInfo = mApexManager.getPackageInfo("test.apex.rebootless",
+                ApexManager.MATCH_ACTIVE_PACKAGE);
+        assertThat(newInfo.applicationInfo.sourceDir).isEqualTo(finalApex.getAbsolutePath());
+        assertThat(newInfo.applicationInfo.longVersionCode).isEqualTo(2);
+        assertThat(newInfo.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM).isEqualTo(0);
+        assertThat(newInfo.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED)
+            .isEqualTo(ApplicationInfo.FLAG_INSTALLED);
+
+        PackageInfo factoryInfo = mApexManager.getPackageInfo("test.apex.rebootless",
+                ApexManager.MATCH_FACTORY_PACKAGE);
+        assertThat(factoryInfo.applicationInfo.sourceDir).isEqualTo(factoryApexInfo.modulePath);
+        assertThat(factoryInfo.applicationInfo.longVersionCode).isEqualTo(1);
+        assertThat(factoryInfo.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM)
+            .isEqualTo(ApplicationInfo.FLAG_SYSTEM);
+        assertThat(factoryInfo.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED).isEqualTo(0);
     }
 
     @Test
diff --git a/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java b/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
index d6b3c27b4b09f..9cdaef75c491a 100644
--- a/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
+++ b/tests/StagedInstallTest/app/src/com/android/tests/stagedinstallinternal/StagedInstallInternalTest.java
@@ -212,6 +212,28 @@ public class StagedInstallInternalTest {
             assertThat(apex.applicationInfo.sourceDir).startsWith("/system/apex");
         }
 
+        TestApp apex1 = new TestApp("TestRebootlessApexV1", "test.apex.rebootless", 1,
+                /* isApex= */ true, "test.rebootless_apex_v1.apex");
+        Install.single(apex1).commit();
+
+        {
+            PackageInfo apex = pm.getPackageInfo("test.apex.rebootless", PackageManager.MATCH_APEX);
+            assertThat(apex.getLongVersionCode()).isEqualTo(1);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM).isEqualTo(0);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED)
+                    .isEqualTo(ApplicationInfo.FLAG_INSTALLED);
+            assertThat(apex.applicationInfo.sourceDir).startsWith("/data/apex/active");
+        }
+        {
+            PackageInfo apex = pm.getPackageInfo("test.apex.rebootless",
+                    PackageManager.MATCH_APEX | PackageManager.MATCH_FACTORY_ONLY);
+            assertThat(apex.getLongVersionCode()).isEqualTo(1);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM)
+                    .isEqualTo(ApplicationInfo.FLAG_SYSTEM);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED).isEqualTo(0);
+            assertThat(apex.applicationInfo.sourceDir).startsWith("/system/apex");
+        }
+
         TestApp apex2 = new TestApp("TestRebootlessApexV1", "test.apex.rebootless", 2,
                 /* isApex= */ true, "test.rebootless_apex_v2.apex");
         Install.single(apex2).commit();
@@ -224,6 +246,15 @@ public class StagedInstallInternalTest {
                     .isEqualTo(ApplicationInfo.FLAG_INSTALLED);
             assertThat(apex.applicationInfo.sourceDir).startsWith("/data/apex/active");
         }
+        {
+            PackageInfo apex = pm.getPackageInfo("test.apex.rebootless",
+                    PackageManager.MATCH_APEX | PackageManager.MATCH_FACTORY_ONLY);
+            assertThat(apex.getLongVersionCode()).isEqualTo(1);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_SYSTEM)
+                    .isEqualTo(ApplicationInfo.FLAG_SYSTEM);
+            assertThat(apex.applicationInfo.flags & ApplicationInfo.FLAG_INSTALLED).isEqualTo(0);
+            assertThat(apex.applicationInfo.sourceDir).startsWith("/system/apex");
+        }
     }
 
     private static void assertSessionFailedWithMessage(int sessionId, String msg) {