Comment # 1 on bug 1195904 from Johannes Segitz

This works without issues for me:
ssh testuser@192.168.122.174
Last login: Fri Jun 24 10:58:08 2022 from 192.168.122.100
testuser@localhost:~> id -Z
user_u:user_r:user_t:s0

Can you please share what generates this output?