DO NOT MERGE Fix Emulator not emitting folding features.

Fix emulator not emitting folding features. Emitting the fold state was
removed since it works differently for emulators. Emulators write to
settings while the reference implementation reads the value from
DeviceStateManager. Update the setting producer to also read the state
from settings.

Bug: 218872245
Test: Manual - open window manager samples on an emulator.
Change-Id: I7def87bd406c2ae5b1ac27be58a3b22a239c3e82