Is anyone working on this ? I can investigate if it helps. 

I actually don't think anything has to be done in CompositorImpl. The convention is that the parent updates the fallback SurfaceId of the child when the child activates, but CompositorImpl doesn't have a parent. ui::Compositor also doesn't do anything in OnFirstSurfaceActivation and everything works fine.

https://cs.chromium.org/chromium/src/ui/compositor/compositor.cc?rcl=95670db5fbc28116e19d00294b777ab2423fbf8f&l=634

I figured out what the problem is. GlOutputSurface does not call CommitOverlayPlanes in SwapBuffers. I'll send a fix tomorrow.

I'll send a CL to get rid of the code in OnFirstSurfaceActivation and will mark this bug as fixed afterwards.

The following revision refers to this bug:
  https://chromium.googlesource.com/chromium/src.git/+/bb67bf56b4b5d4cb0a32b8376eee5e740db220d3

commit bb67bf56b4b5d4cb0a32b8376eee5e740db220d3
Author: Saman Sami <samans@chromium.org>
Date: Wed Jun 13 16:53:00 2018

Android/viz: Don't allocate a new LocalSurfaceId after each activation

Currently CompositorImpl allocates a new LocalSurfaceId every time its
previous surface activates. This was introduced because
DelegatedFrameHostAndroid did not properly set the fallback SurfaceId
but that's not the case anymore.

Bug:  849709 
Change-Id: I6dec507a968aa6ceee7fe3f05c68169bc0c37198
Reviewed-on: https://chromium-review.googlesource.com/1099179
Reviewed-by: Fady Samuel <fsamuel@chromium.org>
Commit-Queue: Saman Sami <samans@chromium.org>
Cr-Commit-Position: refs/heads/master@{#566875}
[modify] https://crrev.com/bb67bf56b4b5d4cb0a32b8376eee5e740db220d3/content/browser/renderer_host/compositor_impl_android.cc
[modify] https://crrev.com/bb67bf56b4b5d4cb0a32b8376eee5e740db220d3/content/browser/renderer_host/compositor_impl_android.h