diff --git a/services/core/java/com/android/server/wm/ActivityRecord.java b/services/core/java/com/android/server/wm/ActivityRecord.java
index fc7cbbae5d51a..ca03e3b5afc06 100644
--- a/services/core/java/com/android/server/wm/ActivityRecord.java
+++ b/services/core/java/com/android/server/wm/ActivityRecord.java
@@ -8004,7 +8004,8 @@ final class ActivityRecord extends WindowToken implements WindowManagerService.A
         if (mVisibleRequested) {
             // It may toggle the UI for user to restart the size compatibility mode activity.
             display.handleActivitySizeCompatModeIfNeeded(this);
-        } else if (mCompatDisplayInsets != null && !visibleIgnoringKeyguard) {
+        } else if (mCompatDisplayInsets != null && !visibleIgnoringKeyguard
+                && (app == null || !app.hasVisibleActivities())) {
             // visibleIgnoringKeyguard is checked to avoid clearing mCompatDisplayInsets during
             // displays change. Displays are turned off during the change so mVisibleRequested
             // can be false.
diff --git a/services/tests/wmtests/src/com/android/server/wm/SizeCompatTests.java b/services/tests/wmtests/src/com/android/server/wm/SizeCompatTests.java
index 2954d783c1499..645d804b3cfc5 100644
--- a/services/tests/wmtests/src/com/android/server/wm/SizeCompatTests.java
+++ b/services/tests/wmtests/src/com/android/server/wm/SizeCompatTests.java
@@ -535,6 +535,7 @@ public class SizeCompatTests extends WindowTestsBase {
         mActivity.mVisibleRequested = false;
         mActivity.visibleIgnoringKeyguard = false;
         mActivity.app.setReportedProcState(ActivityManager.PROCESS_STATE_CACHED_ACTIVITY);
+        mActivity.app.computeProcessActivityState();
 
         // Simulate the display changes orientation.
         final Configuration rotatedConfig = rotateDisplay(display, ROTATION_90);