DialogFragment z-order reversed after app backgrounding with Compose Navigation

Problem

I'm using Jetpack Compose Navigation with dialog destinations. When I show a DialogFragment on top of a Compose Navigation Dialog, the order is correct. But after backgrounding the app and returning, the DialogFragment appears under the Compose Dialog instead of on top.

Code

// Compose Navigation Dialog
NavHost(navController) {
    dialog<MyDestination> {
        MyScreen()
    }
}

@Composable
fun MyScreen() {
    val fragmentManager = LocalParentFragmentManager.current
    
    Button(onClick = {
        // Show third-party DialogFragment
        MyDialogFragment().show(fragmentManager, "dialog")
    }) {
        Text("Show Dialog")
    }
}

Steps to Reproduce

1. Navigate to Compose Dialog (via NavController)
2. Click button to show DialogFragment
3. Press HOME button
4. Return to app
5. Bug: DialogFragment is now under Compose Dialog ❌

Expected vs Actual

Before Background:         After Background:
┌─────────────────┐      ┌─────────────────┐
│ DialogFragment  │ ←Top │ Compose Dialog  │ ←Top
├─────────────────┤      ├─────────────────┤
│ Compose Dialog  │      │ DialogFragment  │
└─────────────────┘      └─────────────────┘

Question

How do I maintain correct z-order between Compose Navigation Dialogs and DialogFragments across app backgrounding?

Workaround

Dismissing DialogFragments in onStop() fixes it, but users lose dialog state:

override fun onStop() {
    super.onStop()
    parentFragmentManager.fragments
        .filterIsInstance<DialogFragment>()
        .forEach { it.dismissAllowingStateLoss() }
}

Is there a better solution?

Environment: Compose 1.5.x, Navigation 2.7.x, API 24-34
Note: DialogFragment is from third-party library (cannot modify)

Tags: android jetpack-compose android-dialogfragment compose-navigation