Ah, yeah this is problematic.
No direct workaround I know of, but I think solving this would/could also mean solving the “Create and Open” when auto-sharing using a field which is not the default “Created by”. (kind of related to this: Prevent Created By user from deleting entity - #4 by RonMakesSystems)
Ideally the permissions doesn’t need a hard refresh to show/hide “Read only”, and entity permissions would be live updated.
If you go into “Share” in the entity, and look at who has access, that access list updates live with no hard refresh, so I hope fixing this is not too hard.