[NS A19] Inline updateCapabilities in rematch.

This is ugly, but it's a necessary step to improve the code.
Followups will clean this up. Importantly this kind of inlining
will let us break the very confusing apparent loop between
updateCapabilities and rematch.

Test: FrameworksNetTests
Change-Id: Ie756b9aa8066984264717f0b1e1f31606432f1a4