diff --git a/entity_embed.install b/entity_embed.install
index 57f83ca..901671c 100644
--- a/entity_embed.install
+++ b/entity_embed.install
@@ -48,6 +48,8 @@ function entity_embed_update_8001() {
  * Updates the default mode settings.
  */
 function entity_embed_update_8002() {
-  $config = \Drupal::service('config.factory')->getEditable('entity_embed.settings');
-  $config->set('rendered_entity_mode', TRUE)->save();
+  \Drupal::configFactory()
+    ->getEditable('entity_embed.settings')
+    ->set('rendered_entity_mode', TRUE)
+    ->save();
 }
diff --git a/src/Annotation/EntityEmbedDisplay.php b/src/Annotation/EntityEmbedDisplay.php
index c453f18..776ef82 100644
--- a/src/Annotation/EntityEmbedDisplay.php
+++ b/src/Annotation/EntityEmbedDisplay.php
@@ -1,10 +1,5 @@
 <?php
 
-/**
- * @file
- * Contains \Drupal\entity_embed\Annotation\EntityEmbedDisplay.
- */
-
 namespace Drupal\entity_embed\Annotation;
 
 use Drupal\Component\Annotation\Plugin;
@@ -54,10 +49,10 @@ class EntityEmbedDisplay extends Plugin {
   public $entity_types = FALSE;
 
   /**
-   * Shows plugin in the UI if this is TRUE.
+   * Shows plugin in the UI if this is FALSE.
    *
    * @var bool
    */
-  public $expose_in_ui = TRUE;
+  public $no_ui = FALSE;
 
 }
diff --git a/src/EntityEmbedDisplay/EntityEmbedDisplayManager.php b/src/EntityEmbedDisplay/EntityEmbedDisplayManager.php
index 8c61e06..c77e4fe 100644
--- a/src/EntityEmbedDisplay/EntityEmbedDisplayManager.php
+++ b/src/EntityEmbedDisplay/EntityEmbedDisplayManager.php
@@ -1,10 +1,5 @@
 <?php
 
-/**
- * @file
- * Contains \Drupal\entity_embed\EntityEmbedDisplay\EntityEmbedDisplayManager.
- */
-
 namespace Drupal\entity_embed\EntityEmbedDisplay;
 
 use Drupal\Core\Cache\CacheBackendInterface;
@@ -85,7 +80,10 @@ class EntityEmbedDisplayManager extends DefaultPluginManager {
   }
 
   /**
-   * Provides a list of plugins that can be used for a certain entity.
+   * Gets definition options for entity.
+   *
+   * Provides a list of plugins that can be used for a certain entity and
+   * filters out plugins that should be hidden in the UI.
    *
    * @param \Drupal\Core\Entity\EntityInterface $entity
    *   An entity object.
@@ -112,12 +110,15 @@ class EntityEmbedDisplayManager extends DefaultPluginManager {
    */
   public function filterExposedDefinitions(array $definitions) {
     return array_filter($definitions, function($definition) {
-      return isset($definition['expose_in_ui']) && $definition['expose_in_ui'] == TRUE;
+      return isset($definition['no_ui']) && $definition['no_ui'] == FALSE;
     });
   }
 
   /**
-   * Provides a list of plugins that can be used for a certain entity type.
+   * Gets definition options for entity type.
+   *
+   * Provides a list of plugins that can be used for a certain entity type and
+   * filters out plugins that should be hidden in the UI.
    *
    * @param string $entity_type
    *   The entity type id.
diff --git a/src/Plugin/Derivative/FieldFormatterDeriver.php b/src/Plugin/Derivative/FieldFormatterDeriver.php
index bcb9092..2274068 100644
--- a/src/Plugin/Derivative/FieldFormatterDeriver.php
+++ b/src/Plugin/Derivative/FieldFormatterDeriver.php
@@ -1,10 +1,5 @@
 <?php
 
-/**
- * @file
- * Contains \Drupal\entity_embed\Plugin\Derivative\FieldFormatterDeriver.
- */
-
 namespace Drupal\entity_embed\Plugin\Derivative;
 
 use Drupal\Component\Plugin\Derivative\DeriverBase;
@@ -74,8 +69,12 @@ class FieldFormatterDeriver extends DeriverBase implements ContainerDeriverInter
     foreach ($this->formatterManager->getOptions($base_plugin_definition['field_type']) as $formatter => $label) {
       $this->derivatives[$formatter] = $base_plugin_definition;
       $this->derivatives[$formatter]['label'] = $label;
+      // Don't show entity_reference_entity_view in the UI if the rendered
+      // entity mode is FALSE. In that case we show view modes from
+      // ViewModeDeriver, entity_reference_entity_view is kept for backwards
+      // compatibility.
       if ($formatter == 'entity_reference_entity_view' && $mode == FALSE) {
-        $this->derivatives[$formatter]['expose_in_ui'] = FALSE;
+        $this->derivatives[$formatter]['no_ui'] = TRUE;
       }
     }
     return $this->derivatives;
diff --git a/src/Plugin/Derivative/ViewModeDeriver.php b/src/Plugin/Derivative/ViewModeDeriver.php
index 2f7fb37..76cfd82 100644
--- a/src/Plugin/Derivative/ViewModeDeriver.php
+++ b/src/Plugin/Derivative/ViewModeDeriver.php
@@ -64,7 +64,7 @@ class ViewModeDeriver extends DeriverBase implements ContainerDeriverInterface {
         $this->derivatives[$definition['id']]['label'] = new TranslatableMarkup($definition['label']);
         $this->derivatives[$definition['id']]['view_mode'] = $view_mode;
         $this->derivatives[$definition['id']]['entity_types'] = $definition['targetEntityType'];
-        $this->derivatives[$definition['id']]['expose_in_ui'] = $mode ? FALSE : TRUE;
+        $this->derivatives[$definition['id']]['no_ui'] = $mode ? TRUE : FALSE;
       }
     }
     return $this->derivatives;
diff --git a/src/Tests/EntityEmbedUpdateHookTest.php b/src/Tests/EntityEmbedUpdateHookTest.php
new file mode 100644
index 0000000..5830a93
--- /dev/null
+++ b/src/Tests/EntityEmbedUpdateHookTest.php
@@ -0,0 +1,43 @@
+<?php
+
+namespace Drupal\entity_embed\Tests;
+
+use Drupal\system\Tests\Update\UpdatePathTestBase;
+
+/**
+ * Tests the update hooks in entity_embed module.
+ *
+ * @group entity_embed
+ */
+class EntityEmbedUpdateHookTest extends UpdatePathTestBase {
+
+  /**
+   * Set database dump files to be used.
+   */
+  protected function setDatabaseDumpFiles() {
+    $this->databaseDumpFiles = [
+      DRUPAL_ROOT . '/core/modules/system/tests/fixtures/update/drupal-8.bare.standard.php.gz',
+      __DIR__ . '/../../tests/fixtures/update/entity_embed.update-hook-test.php',
+    ];
+  }
+
+  /**
+   * {@inheritdoc}
+   */
+  protected function doSelectionTest() {
+    parent::doSelectionTest();
+    $this->assertRaw('8002 -   Updates the default mode settings.');
+  }
+
+  /**
+   * Tests hook_post_update_NAME().
+   */
+  public function testPostUpdate() {
+    $this->runUpdates();
+    $mode = $this->container->get('config.factory')
+      ->get('entity_embed.settings')
+      ->get('rendered_entity_mode');
+    $this->assertTrue($mode, 'Render entity mode settings after update is correct.');
+  }
+
+}
diff --git a/tests/fixtures/update/entity_embed.update-hook-test.php b/tests/fixtures/update/entity_embed.update-hook-test.php
new file mode 100644
index 0000000..6c4c33d
--- /dev/null
+++ b/tests/fixtures/update/entity_embed.update-hook-test.php
@@ -0,0 +1,33 @@
+<?php
+
+use Drupal\Core\Database\Database;
+
+$connection = Database::getConnection();
+
+// Set the schema version.
+$connection->merge('key_value')
+  ->condition('collection', 'system.schema')
+  ->condition('name', 'entity_embed')
+  ->fields([
+    'collection' => 'system.schema',
+    'name' => 'entity_embed',
+    'value' => 's:4:"8001";',
+  ])
+  ->execute();
+
+// Update core.extension.
+$extensions = $connection->select('config')
+  ->fields('config', ['data'])
+  ->condition('collection', '')
+  ->condition('name', 'core.extension')
+  ->execute()
+  ->fetchField();
+$extensions = unserialize($extensions);
+$extensions['module']['entity_embed'] = 8001;
+$connection->update('config')
+  ->fields([
+    'data' => serialize($extensions),
+  ])
+  ->condition('collection', '')
+  ->condition('name', 'core.extension')
+  ->execute();