diff --git a/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php b/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
index 0139bda8a7..c282427028 100644
--- a/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
+++ b/core/lib/Drupal/Core/Entity/Entity/EntityFormDisplay.php
@@ -65,9 +65,10 @@ class EntityFormDisplay extends EntityDisplayBase implements EntityFormDisplayIn
    *   The entity for which the form is being built.
    * @param string $form_mode
    *   The form mode.
-   * @param bool $transient
-   *   (optional) If the render display should be instantiated without
-   *   attempting to load any display from configuration. Defaults to FALSE.
+   * @param bool $default_fallback
+   *   (optional) Whether the default display should be used to initialize the
+   *   form display in case the specified display does not exist. Defaults to
+   *   TRUE.
    *
    * @return \Drupal\Core\Entity\Display\EntityFormDisplayInterface
    *   The display object that should be used to build the entity form.
@@ -75,30 +76,30 @@ class EntityFormDisplay extends EntityDisplayBase implements EntityFormDisplayIn
    * @see entity_get_form_display()
    * @see hook_entity_form_display_alter()
    */
-  public static function collectRenderDisplay(FieldableEntityInterface $entity, $form_mode, $transient = FALSE) {
+  public static function collectRenderDisplay(FieldableEntityInterface $entity, $form_mode, $default_fallback = TRUE) {
     $entity_type = $entity->getEntityTypeId();
     $bundle = $entity->bundle();
-    $storage = \Drupal::entityManager()->getStorage('entity_form_display');
 
-    if (!$transient) {
-      // Check the existence and status of:
-      // - the display for the form mode,
-      // - the 'default' display.
-      if ($form_mode != 'default') {
-        $candidate_ids[] = $entity_type . '.' . $bundle . '.' . $form_mode;
-      }
+    // Check the existence and status of:
+    // - the display for the form mode,
+    // - the 'default' display.
+    if ($form_mode != 'default') {
+      $candidate_ids[] = $entity_type . '.' . $bundle . '.' . $form_mode;
+    }
+    if ($default_fallback) {
       $candidate_ids[] = $entity_type . '.' . $bundle . '.default';
-      $results = \Drupal::entityQuery('entity_form_display')
-        ->condition('id', $candidate_ids)
-        ->condition('status', TRUE)
-        ->execute();
-
-      // Load the first valid candidate display, if any.
-      foreach ($candidate_ids as $candidate_id) {
-        if (isset($results[$candidate_id])) {
-          $display = $storage->load($candidate_id);
-          break;
-        }
+    }
+    $results = \Drupal::entityQuery('entity_form_display')
+      ->condition('id', $candidate_ids)
+      ->condition('status', TRUE)
+      ->execute();
+
+    // Load the first valid candidate display, if any.
+    $storage = \Drupal::entityManager()->getStorage('entity_form_display');
+    foreach ($candidate_ids as $candidate_id) {
+      if (isset($results[$candidate_id])) {
+        $display = $storage->load($candidate_id);
+        break;
       }
     }
     // Else create a fresh runtime object.
@@ -106,9 +107,8 @@ public static function collectRenderDisplay(FieldableEntityInterface $entity, $f
       $display = $storage->create([
         'targetEntityType' => $entity_type,
         'bundle' => $bundle,
-        'mode' => $form_mode,
+        'mode' => $default_fallback ? $form_mode : static::CUSTOM_MODE,
         'status' => TRUE,
-        'skipDisplayInitialization' => $transient,
       ]);
     }
 
diff --git a/core/lib/Drupal/Core/Entity/EntityDisplayBase.php b/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
index b97b30d990..e696a982fe 100644
--- a/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
+++ b/core/lib/Drupal/Core/Entity/EntityDisplayBase.php
@@ -56,13 +56,6 @@
    */
   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.
@@ -160,7 +153,7 @@ 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 && !$this->skipDisplayInitialization) {
+    if ($this->mode !== static::CUSTOM_MODE) {
       $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 4de7c4affd..552fa5910e 100644
--- a/core/modules/layout_builder/src/Form/OverridesEntityForm.php
+++ b/core/modules/layout_builder/src/Form/OverridesEntityForm.php
@@ -76,7 +76,7 @@ public function getBaseFormId() {
   protected function init(FormStateInterface $form_state) {
     parent::init($form_state);
 
-    $form_display = EntityFormDisplay::collectRenderDisplay($this->entity, $this->getOperation(), TRUE);
+    $form_display = EntityFormDisplay::collectRenderDisplay($this->entity, $this->getOperation(), FALSE);
     $form_display->setComponent(OverridesSectionStorage::FIELD_NAME, [
       'type' => 'layout_builder_widget',
       'weight' => -10,