diff --git a/services/core/java/com/android/server/wm/DisplayContent.java b/services/core/java/com/android/server/wm/DisplayContent.java
index 8eb0046ff9237..3b16fe4ee7362 100644
--- a/services/core/java/com/android/server/wm/DisplayContent.java
+++ b/services/core/java/com/android/server/wm/DisplayContent.java
@@ -53,6 +53,7 @@ import static android.view.Surface.ROTATION_0;
 import static android.view.Surface.ROTATION_270;
 import static android.view.Surface.ROTATION_90;
 import static android.view.View.GONE;
+import static android.view.ViewRootImpl.LOCAL_LAYOUT;
 import static android.view.WindowInsets.Type.displayCutout;
 import static android.view.WindowInsets.Type.ime;
 import static android.view.WindowInsets.Type.systemBars;
@@ -2647,29 +2648,27 @@ class DisplayContent extends RootDisplayArea implements WindowManagerPolicy.Disp
         mCurrentPrivacyIndicatorBounds =
                 mCurrentPrivacyIndicatorBounds.updateStaticBounds(staticBounds);
         if (!Objects.equals(oldBounds, mCurrentPrivacyIndicatorBounds)) {
-            final DisplayInfo info = mDisplayInfo;
-            if (mDisplayFrames.onDisplayInfoUpdated(info,
-                    calculateDisplayCutoutForRotation(info.rotation),
-                    calculateRoundedCornersForRotation(info.rotation),
-                    calculatePrivacyIndicatorBoundsForRotation(info.rotation))) {
-                mInsetsStateController.onDisplayInfoUpdated(true);
-            }
+            updateDisplayFrames(false /* insetsSourceMayChange */, true /* notifyInsetsChange */);
         }
     }
 
     void onDisplayInfoChanged() {
-        final DisplayInfo info = mDisplayInfo;
-        if (mDisplayFrames.onDisplayInfoUpdated(info,
-                calculateDisplayCutoutForRotation(info.rotation),
-                calculateRoundedCornersForRotation(info.rotation),
-                calculatePrivacyIndicatorBoundsForRotation(info.rotation))) {
-            // TODO(b/161810301): Set notifyInsetsChange to true while the server no longer performs
-            //                    layout.
-            mInsetsStateController.onDisplayInfoUpdated(false /* notifyInsetsChanged */);
-        }
+        updateDisplayFrames(LOCAL_LAYOUT, LOCAL_LAYOUT);
         mMinSizeOfResizeableTaskDp = getMinimalTaskSizeDp();
-        mInputMonitor.layoutInputConsumers(info.logicalWidth, info.logicalHeight);
-        mDisplayPolicy.onDisplayInfoChanged(info);
+        mInputMonitor.layoutInputConsumers(mDisplayInfo.logicalWidth, mDisplayInfo.logicalHeight);
+        mDisplayPolicy.onDisplayInfoChanged(mDisplayInfo);
+    }
+
+    private void updateDisplayFrames(boolean insetsSourceMayChange, boolean notifyInsetsChange) {
+        if (mDisplayFrames.update(mDisplayInfo,
+                calculateDisplayCutoutForRotation(mDisplayInfo.rotation),
+                calculateRoundedCornersForRotation(mDisplayInfo.rotation),
+                calculatePrivacyIndicatorBoundsForRotation(mDisplayInfo.rotation))) {
+            if (insetsSourceMayChange) {
+                mDisplayPolicy.updateInsetsSourceFramesExceptIme(mDisplayFrames);
+            }
+            mInsetsStateController.onDisplayFramesUpdated(notifyInsetsChange);
+        }
     }
 
     @Override
diff --git a/services/core/java/com/android/server/wm/DisplayFrames.java b/services/core/java/com/android/server/wm/DisplayFrames.java
index 45d7141fd5563..76aa7f963aa6a 100644
--- a/services/core/java/com/android/server/wm/DisplayFrames.java
+++ b/services/core/java/com/android/server/wm/DisplayFrames.java
@@ -64,26 +64,26 @@ public class DisplayFrames {
             PrivacyIndicatorBounds indicatorBounds) {
         mDisplayId = displayId;
         mInsetsState = insetsState;
-        onDisplayInfoUpdated(info, displayCutout, roundedCorners, indicatorBounds);
+        update(info, displayCutout, roundedCorners, indicatorBounds);
     }
 
     /**
-     * Update {@link DisplayFrames} when {@link DisplayInfo} is updated.
+     * This is called when {@link DisplayInfo} or {@link PrivacyIndicatorBounds} is updated.
      *
      * @param info the updated {@link DisplayInfo}.
      * @param displayCutout the updated {@link DisplayCutout}.
      * @param roundedCorners the updated {@link RoundedCorners}.
-     * @return {@code true} if the insets state has been changed; {@code false} otherwise.
+     * @param indicatorBounds the updated {@link PrivacyIndicatorBounds}.
+     * @return {@code true} if anything has been changed; {@code false} otherwise.
      */
-    public boolean onDisplayInfoUpdated(DisplayInfo info, @NonNull WmDisplayCutout displayCutout,
+    public boolean update(DisplayInfo info, @NonNull WmDisplayCutout displayCutout,
             @NonNull RoundedCorners roundedCorners,
             @NonNull PrivacyIndicatorBounds indicatorBounds) {
-        mRotation = info.rotation;
-
         final InsetsState state = mInsetsState;
         final Rect safe = mDisplayCutoutSafe;
         final DisplayCutout cutout = displayCutout.getDisplayCutout();
         if (mDisplayWidth == info.logicalWidth && mDisplayHeight == info.logicalHeight
+                && mRotation != info.rotation
                 && state.getDisplayCutout().equals(cutout)
                 && state.getRoundedCorners().equals(roundedCorners)
                 && state.getPrivacyIndicatorBounds().equals(indicatorBounds)) {
@@ -91,6 +91,7 @@ public class DisplayFrames {
         }
         mDisplayWidth = info.logicalWidth;
         mDisplayHeight = info.logicalHeight;
+        mRotation = info.rotation;
         final Rect unrestricted = mUnrestricted;
         unrestricted.set(0, 0, mDisplayWidth, mDisplayHeight);
         state.setDisplayFrame(unrestricted);
diff --git a/services/core/java/com/android/server/wm/DisplayPolicy.java b/services/core/java/com/android/server/wm/DisplayPolicy.java
index 4573ede13f7f5..3d826bf99df0f 100644
--- a/services/core/java/com/android/server/wm/DisplayPolicy.java
+++ b/services/core/java/com/android/server/wm/DisplayPolicy.java
@@ -1498,10 +1498,6 @@ public class DisplayPolicy {
         }
     }
 
-    // TODO(b/161810301): No one is calling this since we haven't moved window layout to the client.
-    //                    When that happens, this should be called when the display rotation is
-    //                    changed, so that we can dispatch the correct insets to all the clients
-    //                    before the insets source windows report their frames to the server.
     void updateInsetsSourceFramesExceptIme(DisplayFrames displayFrames) {
         for (int i = mInsetsSourceWindowsExceptIme.size() - 1; i >= 0; i--) {
             final WindowState win = mInsetsSourceWindowsExceptIme.valueAt(i);
diff --git a/services/core/java/com/android/server/wm/InsetsStateController.java b/services/core/java/com/android/server/wm/InsetsStateController.java
index a19d72e37124a..ed771c202c04e 100644
--- a/services/core/java/com/android/server/wm/InsetsStateController.java
+++ b/services/core/java/com/android/server/wm/InsetsStateController.java
@@ -177,7 +177,7 @@ class InsetsStateController {
         }
     }
 
-    void onDisplayInfoUpdated(boolean notifyInsetsChange) {
+    void onDisplayFramesUpdated(boolean notifyInsetsChange) {
         final ArrayList<WindowState> insetsChangedWindows = new ArrayList<>();
         mDisplayContent.forAllWindows(w -> {
             w.mAboveInsetsState.set(mState, displayCutout());