diff --git a/core/includes/install.core.inc b/core/includes/install.core.inc
index e353e7a..94c9ab5 100644
--- a/core/includes/install.core.inc
+++ b/core/includes/install.core.inc
@@ -911,9 +911,6 @@ function install_system_rebuild(&$install_state) {
     include DRUPAL_ROOT . '/' . $conf_path . '/settings.php';
   }
 
-  // Unset the current service container.
-  drupal_container(NULL, TRUE);
-
   // Reset module list and hook implementation statics.
   module_list_reset();
   module_load_all(FALSE, TRUE);
diff --git a/core/includes/install.inc b/core/includes/install.inc
index 4fa35ff..c836100 100644
--- a/core/includes/install.inc
+++ b/core/includes/install.inc
@@ -410,15 +410,8 @@ function drupal_install_system() {
   $module = 'system';
 
   $schema_store = drupal_container()->get('keyvalue')->get('system.schema');
-  $module_config = config('system.module');
-  $disabled_config = config('system.module.disabled');
+  $module_filenames = drupal_container()->getParameter('container.modules');
 
-  $module_config
-    ->set("enabled.$module", 0)
-    ->save();
-  $disabled_config
-    ->clear($module)
-    ->save();
   // Load the module's code.
   drupal_load('module', $module);
 
@@ -426,12 +419,10 @@ function drupal_install_system() {
   system_list_reset();
   module_implements_reset();
   _system_update_bootstrap_status();
+
   // Update the kernel to include it.
-  // @todo The if statement is here because install_begin_request() creates
-  //   a container without a kernel. It probably shouldn't.
-  if ($kernel = drupal_container()->get('kernel', ContainerInterface::NULL_ON_INVALID_REFERENCE)) {
-    $kernel->updateModules(module_list(), array($module => drupal_get_path('module', $module)));
-  }
+  $module_filenames[$module] = drupal_get_filename('module', $module);
+  drupal_container()->get('kernel')->updateModules(module_list(), $module_filenames);
 
   // Refresh the schema to include it.
   drupal_get_schema(NULL, TRUE);
@@ -441,22 +432,38 @@ function drupal_install_system() {
   // Clear the entity info cache before importing new configuration.
   entity_info_cache_clear();
 
+  // Set the schema version to the number of the last update provided
+  // by the module.
+  $versions = drupal_get_schema_versions($module);
+  $version = $versions ? max($versions) : SCHEMA_INSTALLED;
+
   // Install default configuration of the module.
   config_install_default_config('module', $module);
 
-  // Set the schema version to the number of the last update provided.
-  $versions = drupal_get_schema_versions($module);
-  $version = $versions ? max($versions) : SCHEMA_INSTALLED;
-  $schema_store->set($module, $version);
+  // Unlike module_enable(), the entry in system.module:enabled can only be
+  // written after the default configuration has been installed, because the
+  // default configuration contains the system.module object itself and
+  // config_install_default_config() overwrites existing files in the target
+  // storage.
+  config('system.module')
+    ->set("enabled.$module", 0)
+    ->save();
+
+  // If the module has no current updates, but has some that were
+  // previously removed, set the version to the value of
+  // hook_update_last_removed().
+  if ($last_removed = module_invoke($module, 'update_last_removed')) {
+    $version = max($version, $last_removed);
+  }
+  drupal_set_installed_schema_version($module, $version);
 
   // Allow the module to perform install tasks.
   module_invoke($module, 'install');
-
+  // Record the fact that it was installed.
   watchdog('system', '%module module installed.', array('%module' => $module), WATCHDOG_INFO);
 
-  entity_info_cache_clear();
-
   // Enable the module.
+  entity_info_cache_clear();
   module_invoke($module, 'enable');
 }
 
diff --git a/core/includes/module.inc b/core/includes/module.inc
index 9be96cd..fc726dc 100644
--- a/core/includes/module.inc
+++ b/core/includes/module.inc
@@ -517,13 +517,11 @@ function module_enable($module_list, $enable_dependencies = TRUE) {
       system_list_reset();
       module_implements_reset();
       _system_update_bootstrap_status();
-      $module_filenames[$module] = drupal_get_filename('module', $module);
+
       // Update the kernel to include it.
-      // @todo The if statement is here because install_begin_request() creates
-      //   a container without a kernel. It probably shouldn't.
-      if ($kernel = drupal_container()->get('kernel', ContainerInterface::NULL_ON_INVALID_REFERENCE)) {
-        $kernel->updateModules(module_list(), $module_filenames);
-      }
+      $module_filenames[$module] = drupal_get_filename('module', $module);
+      drupal_container()->get('kernel')->updateModules(module_list(), $module_filenames);
+
       // Refresh the schema to include it.
       drupal_get_schema(NULL, TRUE);
       // Update the theme registry to include it.
diff --git a/core/modules/system/config/system.module.yml b/core/modules/system/config/system.module.yml
index dc71340..01151d1 100644
--- a/core/modules/system/config/system.module.yml
+++ b/core/modules/system/config/system.module.yml
@@ -1,6 +1 @@
-enabled:
-  # @todo config_install_default_config() overwrites existing config.
-  #   In case of System module, the installer needs to write this config file,
-  #   before it can install default config. Therefore, system module MUST be
-  #   contained in here already.
-  system: '0'
+enabled: {  }