diff --git a/quickstep/src/com/android/quickstep/DesktopSystemShortcut.kt b/quickstep/src/com/android/quickstep/DesktopSystemShortcut.kt
index d60dab6..914855b 100644
--- a/quickstep/src/com/android/quickstep/DesktopSystemShortcut.kt
+++ b/quickstep/src/com/android/quickstep/DesktopSystemShortcut.kt
@@ -26,6 +26,7 @@
 import com.android.quickstep.views.RecentsViewContainer
 import com.android.quickstep.views.TaskContainer
 import com.android.systemui.shared.system.InteractionJankMonitorWrapper
+import com.android.wm.shell.shared.desktopmode.DesktopModeCompatPolicy
 import com.android.wm.shell.shared.desktopmode.DesktopModeStatus
 import com.android.wm.shell.shared.desktopmode.DesktopModeTransitionSource
 
@@ -70,16 +71,31 @@
                     container: RecentsViewContainer,
                     taskContainer: TaskContainer,
                 ): List<DesktopSystemShortcut>? {
-                    return if (!DesktopModeStatus.canEnterDesktopMode(container.asContext())) null
-                    else if (!taskContainer.task.isDockable) null
-                    else
-                        listOf(
-                            DesktopSystemShortcut(
-                                container,
-                                taskContainer,
-                                abstractFloatingViewHelper,
+                    val context = container.asContext()
+                    val taskKey = taskContainer.task.key
+                    val desktopModeCompatPolicy = DesktopModeCompatPolicy(context)
+                    return when {
+                        !DesktopModeStatus.canEnterDesktopMode(context) -> null
+
+                        desktopModeCompatPolicy.isTopActivityExemptFromDesktopWindowing(
+                            taskKey.baseActivity?.packageName,
+                            taskKey.numActivities,
+                            taskKey.isTopActivityNoDisplay,
+                            taskKey.isActivityStackTransparent,
+                        ) -> null
+
+                        !taskContainer.task.isDockable -> null
+
+                        else -> {
+                            listOf(
+                                DesktopSystemShortcut(
+                                    container,
+                                    taskContainer,
+                                    abstractFloatingViewHelper,
+                                )
                             )
-                        )
+                        }
+                    }
                 }
 
                 override fun showForGroupedTask() = true
diff --git a/quickstep/src/com/android/quickstep/ExternalDisplaySystemShortcut.kt b/quickstep/src/com/android/quickstep/ExternalDisplaySystemShortcut.kt
index 46c4f36..f97cf9c 100644
--- a/quickstep/src/com/android/quickstep/ExternalDisplaySystemShortcut.kt
+++ b/quickstep/src/com/android/quickstep/ExternalDisplaySystemShortcut.kt
@@ -25,6 +25,7 @@
 import com.android.quickstep.views.RecentsViewContainer
 import com.android.quickstep.views.TaskContainer
 import com.android.window.flags.Flags
+import com.android.wm.shell.shared.desktopmode.DesktopModeCompatPolicy
 import com.android.wm.shell.shared.desktopmode.DesktopModeStatus
 
 /** A menu item that allows the user to move the current app into external display. */
@@ -66,18 +67,31 @@
                     container: RecentsViewContainer,
                     taskContainer: TaskContainer,
                 ): List<ExternalDisplaySystemShortcut>? {
-                    return if (
-                        DesktopModeStatus.canEnterDesktopMode(container.asContext()) &&
-                            Flags.moveToExternalDisplayShortcut()
-                    )
-                        listOf(
-                            ExternalDisplaySystemShortcut(
-                                container,
-                                abstractFloatingViewHelper,
-                                taskContainer,
+                    val context = container.asContext()
+                    val taskKey = taskContainer.task.key
+                    val desktopModeCompatPolicy = DesktopModeCompatPolicy(context)
+                    return when {
+                        !DesktopModeStatus.canEnterDesktopMode(context) -> null
+
+                        !Flags.moveToExternalDisplayShortcut() -> null
+
+                        desktopModeCompatPolicy.isTopActivityExemptFromDesktopWindowing(
+                            taskKey.baseActivity?.packageName,
+                            taskKey.numActivities,
+                            taskKey.isTopActivityNoDisplay,
+                            taskKey.isActivityStackTransparent,
+                        ) -> null
+
+                        else -> {
+                            listOf(
+                                ExternalDisplaySystemShortcut(
+                                    container,
+                                    abstractFloatingViewHelper,
+                                    taskContainer,
+                                )
                             )
-                        )
-                    else null
+                        }
+                    }
                 }
 
                 override fun showForGroupedTask() = true
diff --git a/quickstep/tests/src/com/android/quickstep/DesktopSystemShortcutTest.kt b/quickstep/tests/src/com/android/quickstep/DesktopSystemShortcutTest.kt
index c152ee1..52bd2ea 100644
--- a/quickstep/tests/src/com/android/quickstep/DesktopSystemShortcutTest.kt
+++ b/quickstep/tests/src/com/android/quickstep/DesktopSystemShortcutTest.kt
@@ -17,28 +17,33 @@
 package com.android.quickstep
 
 import android.content.ComponentName
+import android.content.Context
 import android.content.Intent
+import android.platform.test.annotations.EnableFlags
+import android.view.Display.DEFAULT_DISPLAY
 import androidx.test.platform.app.InstrumentationRegistry
 import com.android.dx.mockito.inline.extended.ExtendedMockito.mockitoSession
 import com.android.dx.mockito.inline.extended.StaticMockitoSession
+import com.android.internal.R
 import com.android.launcher3.AbstractFloatingView
 import com.android.launcher3.AbstractFloatingViewHelper
 import com.android.launcher3.Flags.enableRefactorTaskThumbnail
 import com.android.launcher3.logging.StatsLogManager
 import com.android.launcher3.logging.StatsLogManager.LauncherEvent
 import com.android.launcher3.model.data.TaskViewItemInfo
-import com.android.launcher3.uioverrides.QuickstepLauncher
 import com.android.launcher3.util.SplitConfigurationOptions
 import com.android.launcher3.util.TransformingTouchDelegate
 import com.android.quickstep.TaskOverlayFactory.TaskOverlay
 import com.android.quickstep.task.thumbnail.TaskThumbnailView
 import com.android.quickstep.views.LauncherRecentsView
+import com.android.quickstep.views.RecentsViewContainer
 import com.android.quickstep.views.TaskContainer
 import com.android.quickstep.views.TaskThumbnailViewDeprecated
 import com.android.quickstep.views.TaskView
 import com.android.quickstep.views.TaskViewIcon
 import com.android.systemui.shared.recents.model.Task
 import com.android.systemui.shared.recents.model.Task.TaskKey
+import com.android.window.flags.Flags
 import com.android.wm.shell.shared.desktopmode.DesktopModeStatus
 import com.android.wm.shell.shared.desktopmode.DesktopModeTransitionSource
 import com.google.common.truth.Truth.assertThat
@@ -58,7 +63,7 @@
 /** Test for [DesktopSystemShortcut] */
 class DesktopSystemShortcutTest {
 
-    private val launcher: QuickstepLauncher = mock()
+    private val launcher: RecentsViewContainer = mock()
     private val statsLogManager: StatsLogManager = mock()
     private val statsLogger: StatsLogManager.StatsLogger = mock()
     private val recentsView: LauncherRecentsView = mock()
@@ -67,6 +72,7 @@
     private val overlayFactory: TaskOverlayFactory = mock()
     private val factory: TaskShortcutFactory =
         DesktopSystemShortcut.createFactory(abstractFloatingViewHelper)
+    private val context: Context = InstrumentationRegistry.getInstrumentation().targetContext
 
     private lateinit var mockitoSession: StaticMockitoSession
 
@@ -79,6 +85,7 @@
                 .startMocking()
         whenever(DesktopModeStatus.canEnterDesktopMode(any())).thenReturn(true)
         whenever(overlayFactory.createOverlay(any())).thenReturn(mock<TaskOverlay<*>>())
+        whenever(launcher.asContext()).thenReturn(context)
     }
 
     @After
@@ -97,6 +104,53 @@
     }
 
     @Test
+    @EnableFlags(Flags.FLAG_ENABLE_DESKTOP_WINDOWING_MODALS_POLICY)
+    fun createDesktopTaskShortcutFactory_transparentTask() {
+        val baseComponent = ComponentName("", /* class */ "")
+        val taskKey =
+            TaskKey(
+                /* id */ 1,
+                /* windowingMode */ 0,
+                Intent(),
+                baseComponent,
+                /* userId */ 0,
+                /* lastActiveTime */ 2000,
+                DEFAULT_DISPLAY,
+                baseComponent,
+                /* numActivities */ 1,
+                /* isTopActivityNoDisplay */ false,
+                /* isActivityStackTransparent */ true,
+            )
+        val taskContainer = createTaskContainer(Task(taskKey))
+        val shortcuts = factory.getShortcuts(launcher, taskContainer)
+        assertThat(shortcuts).isNull()
+    }
+
+    @Test
+    @EnableFlags(Flags.FLAG_ENABLE_DESKTOP_WINDOWING_MODALS_POLICY)
+    fun createDesktopTaskShortcutFactory_systemUiTask() {
+        val sysUiPackageName: String = context.resources.getString(R.string.config_systemUi)
+        val baseComponent = ComponentName(sysUiPackageName, /* class */ "")
+        val taskKey =
+            TaskKey(
+                /* id */ 1,
+                /* windowingMode */ 0,
+                Intent(),
+                baseComponent,
+                /* userId */ 0,
+                /* lastActiveTime */ 2000,
+                DEFAULT_DISPLAY,
+                baseComponent,
+                /* numActivities */ 1,
+                /* isTopActivityNoDisplay */ false,
+                /* isActivityStackTransparent */ false,
+            )
+        val taskContainer = createTaskContainer(Task(taskKey))
+        val shortcuts = factory.getShortcuts(launcher, taskContainer)
+        assertThat(shortcuts).isNull()
+    }
+
+    @Test
     fun createDesktopTaskShortcutFactory_undockable() {
         val unDockableTask = createTask().apply { isDockable = false }
         val taskContainer = createTaskContainer(unDockableTask)
@@ -114,8 +168,7 @@
         whenever(launcher.statsLogManager).thenReturn(statsLogManager)
         whenever(statsLogManager.logger()).thenReturn(statsLogger)
         whenever(statsLogger.withItemInfo(any())).thenReturn(statsLogger)
-        whenever(taskView.context)
-            .thenReturn(InstrumentationRegistry.getInstrumentation().targetContext)
+        whenever(taskView.context).thenReturn(context)
         whenever(recentsView.moveTaskToDesktop(any(), any(), any())).thenAnswer {
             val successCallback = it.getArgument<Runnable>(2)
             successCallback.run()
@@ -145,7 +198,22 @@
     }
 
     private fun createTask() =
-        Task(TaskKey(1, 0, Intent(), ComponentName("", ""), 0, 2000)).apply { isDockable = true }
+        Task(
+                TaskKey(
+                    /* id */ 1,
+                    /* windowingMode */ 0,
+                    Intent(),
+                    ComponentName("", ""),
+                    /* userId */ 0,
+                    /* lastActiveTime */ 2000,
+                    DEFAULT_DISPLAY,
+                    ComponentName("", ""),
+                    /* numActivities */ 1,
+                    /* isTopActivityNoDisplay */ false,
+                    /* isActivityStackTransparent */ false,
+                )
+            )
+            .apply { isDockable = true }
 
     private fun createTaskContainer(task: Task) =
         TaskContainer(
diff --git a/quickstep/tests/src/com/android/quickstep/ExternalDisplaySystemShortcutTest.kt b/quickstep/tests/src/com/android/quickstep/ExternalDisplaySystemShortcutTest.kt
index 9c2c13c..4111dec 100644
--- a/quickstep/tests/src/com/android/quickstep/ExternalDisplaySystemShortcutTest.kt
+++ b/quickstep/tests/src/com/android/quickstep/ExternalDisplaySystemShortcutTest.kt
@@ -17,23 +17,27 @@
 package com.android.quickstep
 
 import android.content.ComponentName
+import android.content.Context
 import android.content.Intent
 import android.platform.test.annotations.EnableFlags
 import android.platform.test.flag.junit.SetFlagsRule
+import android.view.Display.DEFAULT_DISPLAY
+import androidx.test.platform.app.InstrumentationRegistry
 import com.android.dx.mockito.inline.extended.ExtendedMockito.mockitoSession
 import com.android.dx.mockito.inline.extended.StaticMockitoSession
+import com.android.internal.R
 import com.android.launcher3.AbstractFloatingView
 import com.android.launcher3.AbstractFloatingViewHelper
 import com.android.launcher3.Flags.enableRefactorTaskThumbnail
 import com.android.launcher3.logging.StatsLogManager
 import com.android.launcher3.logging.StatsLogManager.LauncherEvent
 import com.android.launcher3.model.data.TaskViewItemInfo
-import com.android.launcher3.uioverrides.QuickstepLauncher
 import com.android.launcher3.util.SplitConfigurationOptions
 import com.android.launcher3.util.TransformingTouchDelegate
 import com.android.quickstep.TaskOverlayFactory.TaskOverlay
 import com.android.quickstep.task.thumbnail.TaskThumbnailView
 import com.android.quickstep.views.LauncherRecentsView
+import com.android.quickstep.views.RecentsViewContainer
 import com.android.quickstep.views.TaskContainer
 import com.android.quickstep.views.TaskThumbnailViewDeprecated
 import com.android.quickstep.views.TaskView
@@ -62,7 +66,7 @@
 
     @get:Rule val setFlagsRule = SetFlagsRule(SetFlagsRule.DefaultInitValueType.DEVICE_DEFAULT)
 
-    private val launcher: QuickstepLauncher = mock()
+    private val launcher: RecentsViewContainer = mock()
     private val statsLogManager: StatsLogManager = mock()
     private val statsLogger: StatsLogManager.StatsLogger = mock()
     private val recentsView: LauncherRecentsView = mock()
@@ -71,6 +75,7 @@
     private val overlayFactory: TaskOverlayFactory = mock()
     private val factory: TaskShortcutFactory =
         ExternalDisplaySystemShortcut.createFactory(abstractFloatingViewHelper)
+    private val context: Context = InstrumentationRegistry.getInstrumentation().targetContext
 
     private lateinit var mockitoSession: StaticMockitoSession
 
@@ -83,6 +88,7 @@
                 .startMocking()
         whenever(DesktopModeStatus.canEnterDesktopMode(any())).thenReturn(true)
         whenever(overlayFactory.createOverlay(any())).thenReturn(mock<TaskOverlay<*>>())
+        whenever(launcher.asContext()).thenReturn(context)
     }
 
     @After
@@ -102,6 +108,59 @@
     }
 
     @Test
+    @EnableFlags(
+        Flags.FLAG_MOVE_TO_EXTERNAL_DISPLAY_SHORTCUT,
+        Flags.FLAG_ENABLE_DESKTOP_WINDOWING_MODALS_POLICY,
+    )
+    fun createExternalDisplayTaskShortcut_transparentTask() {
+        val baseComponent = ComponentName("", /* class */ "")
+        val taskKey =
+            TaskKey(
+                /* id */ 1,
+                /* windowingMode */ 0,
+                Intent(),
+                baseComponent,
+                /* userId */ 0,
+                /* lastActiveTime */ 2000,
+                DEFAULT_DISPLAY,
+                baseComponent,
+                /* numActivities */ 1,
+                /* isTopActivityNoDisplay */ false,
+                /* isActivityStackTransparent */ true,
+            )
+        val taskContainer = createTaskContainer(Task(taskKey))
+        val shortcuts = factory.getShortcuts(launcher, taskContainer)
+        assertThat(shortcuts).isNull()
+    }
+
+    @Test
+    @EnableFlags(
+        Flags.FLAG_MOVE_TO_EXTERNAL_DISPLAY_SHORTCUT,
+        Flags.FLAG_ENABLE_DESKTOP_WINDOWING_MODALS_POLICY,
+    )
+    fun createExternalDisplayTaskShortcut_systemUiTask() {
+        val sysUiPackageName: String = context.resources.getString(R.string.config_systemUi)
+        val baseComponent = ComponentName(sysUiPackageName, /* class */ "")
+        val taskKey =
+            TaskKey(
+                /* id */ 1,
+                /* windowingMode */ 0,
+                Intent(),
+                baseComponent,
+                /* userId */ 0,
+                /* lastActiveTime */ 2000,
+                DEFAULT_DISPLAY,
+                baseComponent,
+                /* numActivities */ 1,
+                /* isTopActivityNoDisplay */ false,
+                /* isActivityStackTransparent */ false,
+            )
+        val taskContainer = createTaskContainer(Task(taskKey))
+        val shortcuts = factory.getShortcuts(launcher, taskContainer)
+        assertThat(shortcuts).isNull()
+    }
+
+    @Test
     @EnableFlags(Flags.FLAG_MOVE_TO_EXTERNAL_DISPLAY_SHORTCUT)
     fun externalDisplaySystemShortcutClicked() {
         val task = createTask()
@@ -134,7 +193,22 @@
         verify(statsLogger).log(LauncherEvent.LAUNCHER_SYSTEM_SHORTCUT_EXTERNAL_DISPLAY_TAP)
     }
 
-    private fun createTask() = Task(TaskKey(1, 0, Intent(), ComponentName("", ""), 0, 2000))
+    private fun createTask() =
+        Task(
+            TaskKey(
+                /* id */ 1,
+                /* windowingMode */ 0,
+                Intent(),
+                ComponentName("", ""),
+                /* userId */ 0,
+                /* lastActiveTime */ 2000,
+                DEFAULT_DISPLAY,
+                ComponentName("", ""),
+                /* numActivities */ 1,
+                /* isTopActivityNoDisplay */ false,
+                /* isActivityStackTransparent */ false,
+            )
+        )
 
     private fun createTaskContainer(task: Task) =
         TaskContainer(