diff --git a/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php b/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
index 9d807dcbbc..0139bda8a7 100644
--- a/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
+++ b/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
@@ -106,8 +106,9 @@ public static function collectRenderDisplay(FieldableEntityInterface $entity, $f
       $display = $storage->create([
         'targetEntityType' => $entity_type,
         'bundle' => $bundle,
-        'mode' => $transient ? EntityDisplayBase::CUSTOM_MODE : $form_mode,
+        'mode' => $form_mode,
         'status' => TRUE,
+        'skipDisplayInitialization' => $transient,
       ]);
     }
 
diff --git a/core/lib/Drupal/Core/Entity/EntityDisplayBase.php b/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
index e696a982fe..b97b30d990 100644
--- a/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
+++ b/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
@@ -56,6 +56,13 @@
    */
   protected $mode = self::CUSTOM_MODE;
 
+  /**
+   * Whether the display should be initialized or not.
+   *
+   * @var bool
+   */
+  protected $skipDisplayInitialization = FALSE;
+
   /**
    * Whether this display is enabled or not. If the entity (form) display
    * is disabled, we'll fall back to the 'default' display.
@@ -153,7 +160,7 @@ public function __construct(array $values, $entity_type) {
    */
   protected function init() {
     // Only populate defaults for "official" view modes and form modes.
-    if ($this->mode !== static::CUSTOM_MODE) {
+    if ($this->mode !== static::CUSTOM_MODE && !$this->skipDisplayInitialization) {
       $default_region = $this->getDefaultRegion();
       // Fill in defaults for extra fields.
       $context = $this->displayContext == 'view' ? 'display' : $this->displayContext;
diff --git a/core/modules/layout_builder/src/Form/OverridesEntityForm.php b/core/modules/layout_builder/src/Form/OverridesEntityForm.php
index a32502ad35..4de7c4affd 100644
--- a/core/modules/layout_builder/src/Form/OverridesEntityForm.php
+++ b/core/modules/layout_builder/src/Form/OverridesEntityForm.php
@@ -76,7 +76,6 @@ public function getBaseFormId() {
   protected function init(FormStateInterface $form_state) {
     parent::init($form_state);
 
-    $this->setOperation('layout_builder');
     $form_display = EntityFormDisplay::collectRenderDisplay($this->entity, $this->getOperation(), TRUE);
     $form_display->setComponent(OverridesSectionStorage::FIELD_NAME, [
       'type' => 'layout_builder_widget',
diff --git a/core/modules/layout_builder/tests/modules/layout_builder_test/layout_builder_test.module b/core/modules/layout_builder/tests/modules/layout_builder_test/layout_builder_test.module
index 9b26f57d6a..bccf0236bb 100644
--- a/core/modules/layout_builder/tests/modules/layout_builder_test/layout_builder_test.module
+++ b/core/modules/layout_builder/tests/modules/layout_builder_test/layout_builder_test.module
@@ -83,13 +83,15 @@ function layout_builder_test_form_layout_builder_configure_block_alter(&$form, F
 }
 
 /**
- * Implements hook_layout_builder_overrides_entity_form_display_alter().
+ * Implements hook_entity_form_display_alter().
  */
-function layout_builder_test_layout_builder_overrides_entity_form_display_alter(EntityFormDisplayInterface $display) {
-  $display->setComponent('status', [
-    'type' => 'boolean_checkbox',
-    'settings' => [
-      'display_label' => TRUE,
-    ],
-  ]);
+function layout_builder_entity_form_display_alter(EntityFormDisplayInterface $form_display, array $context) {
+  if ($context['form_mode'] === 'layout_builder') {
+    $form_display->setComponent('status', [
+      'type' => 'boolean_checkbox',
+      'settings' => [
+        'display_label' => TRUE,
+      ],
+    ]);
+  }
 }