diff --git a/core/modules/field_layout/field_layout.install b/core/modules/field_layout/field_layout.install
index 18875181c9..5956bf1095 100644
--- a/core/modules/field_layout/field_layout.install
+++ b/core/modules/field_layout/field_layout.install
@@ -40,19 +40,3 @@ function field_layout_uninstall() {
   // Invalidate the render cache since all content will no longer have a layout.
   Cache::invalidateTags(['rendered']);
 }
-
-/**
- * Implements hook_requirements().
- */
-function field_layout_requirements($phase) {
-  $requirements = [];
-  if ($phase === 'install') {
-    if (\Drupal::moduleHandler()->moduleExists('layout_builder')) {
-      $requirements['field_layout'] = [
-        'description' => t('Field Layout cannot be installed because the Layout Builder module is installed and incompatible.'),
-        'severity' => REQUIREMENT_ERROR,
-      ];
-    }
-  }
-  return $requirements;
-}
diff --git a/core/modules/layout_builder/layout_builder.install b/core/modules/layout_builder/layout_builder.install
deleted file mode 100644
index 64b64078eb..0000000000
--- a/core/modules/layout_builder/layout_builder.install
+++ /dev/null
@@ -1,22 +0,0 @@
-<?php
-
-/**
- * @file
- * Contains install and update functions for Layout Builder.
- */
-
-/**
- * Implements hook_requirements().
- */
-function layout_builder_requirements($phase) {
-  $requirements = [];
-  if ($phase === 'install') {
-    if (\Drupal::moduleHandler()->moduleExists('field_layout')) {
-      $requirements['layout_builder'] = [
-        'description' => t('Layout Builder cannot be installed because the Field Layout module is installed and incompatible.'),
-        'severity' => REQUIREMENT_ERROR,
-      ];
-    }
-  }
-  return $requirements;
-}
diff --git a/core/modules/layout_builder/layout_builder.module b/core/modules/layout_builder/layout_builder.module
index 861db1f3f6..430b92c70f 100644
--- a/core/modules/layout_builder/layout_builder.module
+++ b/core/modules/layout_builder/layout_builder.module
@@ -37,6 +37,29 @@ function layout_builder_entity_type_alter(array &$entity_types) {
   }
 }
 
+/**
+ * Removes the Layout Builder field both visually and from the #fields handling.
+ *
+ * This prevents any interaction with this field. It is rendered directly
+ * in layout_builder_entity_view_display_alter().
+ *
+ * @internal
+ */
+function _layout_builder_hide_layout_field(array &$form) {
+  unset($form['fields']['layout_builder__layout']);
+  $key = array_search('layout_builder__layout', $form['#fields']);
+  if ($key !== FALSE) {
+    unset($form['#fields'][$key]);
+  }
+}
+
+/**
+ * Implements hook_form_FORM_ID_alter() for \Drupal\field_ui\Form\EntityFormDisplayEditForm.
+ */
+function layout_builder_form_entity_form_display_edit_form_alter(&$form, FormStateInterface $form_state) {
+  _layout_builder_hide_layout_field($form);
+}
+
 /**
  * Implements hook_form_FORM_ID_alter() for \Drupal\field_ui\Form\EntityViewDisplayEditForm.
  */
@@ -45,14 +68,7 @@ function layout_builder_form_entity_view_display_edit_form_alter(&$form, FormSta
   $display = $form_state->getFormObject()->getEntity();
   $entity_type = \Drupal::entityTypeManager()->getDefinition($display->getTargetEntityTypeId());
 
-  // Remove layout_builder__layout both visually and from the #fields handling.
-  // This prevents any interaction with this field. It is rendered directly
-  // in layout_builder_entity_view_display_alter().
-  unset($form['fields']['layout_builder__layout']);
-  $key = array_search('layout_builder__layout', $form['#fields']);
-  if ($key !== FALSE) {
-    unset($form['#fields'][$key]);
-  }
+  _layout_builder_hide_layout_field($form);
 
   // @todo Expand to work for all view modes in
   //   https://www.drupal.org/node/2907413.
@@ -151,7 +167,10 @@ function layout_builder_add_layout_section_field($entity_type_id, $bundle, $fiel
 function layout_builder_entity_view_display_alter(EntityViewDisplayInterface $display, array $context) {
   if ($display->getThirdPartySetting('layout_builder', 'allow_custom', FALSE)) {
     // Force the layout to render with no label.
-    $display->setComponent('layout_builder__layout', ['label' => 'hidden']);
+    $display->setComponent('layout_builder__layout', [
+      'label' => 'hidden',
+      'region' => '__layout_builder',
+    ]);
   }
   else {
     $display->removeComponent('layout_builder__layout');
@@ -163,6 +182,12 @@ function layout_builder_entity_view_display_alter(EntityViewDisplayInterface $di
  */
 function layout_builder_entity_view_alter(array &$build, EntityInterface $entity, EntityViewDisplayInterface $display) {
   if ($display->getThirdPartySetting('layout_builder', 'allow_custom', FALSE) && !$entity->layout_builder__layout->isEmpty()) {
+    // If field layout is active, that is all that needs to be removed.
+    if (\Drupal::moduleHandler()->moduleExists('field_layout') && isset($build['_field_layout'])) {
+      unset($build['_field_layout']);
+      return;
+    }
+
     /** @var \Drupal\Core\Field\FieldDefinitionInterface[] $field_definitions */
     $field_definitions = \Drupal::service('entity_field.manager')->getFieldDefinitions($display->getTargetEntityTypeId(), $display->getTargetBundle());
     // Remove all display-configurable fields.