Form #states API doesn't work when editing

Problem/Motivation

I'm using form #states api to show/hide fields conditionally. This is working as expected when I use an Entity Form.

However once I've added a node and edit it the states API conditionals no longer work.

It looks like hook_form_FORM_ID_alter() is getting called when editing an existing form but the conditionals are not being applied.

I've attached a video for reference.

Steps to reproduce.

1. Create a node with conditional logic using form #states api.
2. Add that node using Entity Browser.
3. Edit that node using Entity Browser, the #states conditionals do not work.