Figures in Output disappear if Output displayed twice in same cell

Reproduce the issue with the provided Python notebook example, calling display(o) twice after creating a matplotlib figure inside an Output widget. Compare the first and second displays using the listed JupyterLab, ipympl, matplotlib, and ipywidgets versions; done means the figure remains visible after the repeated display.

Describe the issue

Got an odd one.
If an Output contains a figure, and one calls a single cell containing display(Output) twice, the output "empties" and no figure is shown.

Example below. One can emphasise it by first calling display(o) in one cell, and then doing the double call (I press ctrl + Enter twice) in another cell. I attach a figure showing the result.

# in one cell:
%matplotlib widget
import matplotlib.pyplot as plt
from ipywidgets import Output
o = Output()
with o:
    plt.figure()
    plt.plot([1,2,3])
# In a separate cell, call this twice after each other
display(o)

Versions

 3.8.2 | packaged by conda-forge | (default, Mar 23 2020, 17:32:17) [MSC v.1916 64 bit (AMD64)]
ipympl version: 0.5.6
jupyter core     : 4.6.3
jupyter-notebook : 6.0.3
qtconsole        : 4.7.2
ipython          : 7.13.0
ipykernel        : 5.2.0
jupyter client   : 6.1.3
jupyter lab      : 2.1.4
nbconvert        : 5.6.1
ipywidgets       : 7.5.1
nbformat         : 5.0.4
traitlets        : 4.3.3
Known nbextensions:
  config dir: C:\Users\thomasaar\.jupyter\nbconfig
    notebook section
      default_cells disabled
  config dir: C:\Users\thomasaar\.conda\envs\py5\etc\jupyter\nbconfig
    notebook section
      ipyvolume/extension enabled
      - Validating: ok
      jupyter-webrtc/extension enabled
      - Validating: ok
      jupyter-matplotlib/extension enabled
      - Validating: ok
      plotlywidget/extension enabled
      - Validating: ok
      jupyter-js-widgets/extension enabled
      - Validating: ok
    tree section
      ipyparallel/main enabled
      - Validating: ok
JupyterLab v2.1.4
Known labextensions:
   app dir: C:\Users\thomasaar\.conda\envs\py5\share\jupyter\lab
        @jupyter-widgets/jupyterlab-manager v2.0.0 enabled  ok
        @jupyter-widgets/jupyterlab-sidecar v0.5.0 enabled  ok
        jupyter-matplotlib v0.7.2 enabled  ok```