Dnf update reset config

I am running F38 on a laptop. To unlock my screen, or to sudo, I have configured the system to use a pin + hw-key. After dnf update, the unlock screen denied using the pin. I eventually found that package authselect-libs had updated /etc/authselect/system-auth. From my backup I found my old setting, and re-applied my lost changes. Unlocking the screen works fine again.

Checking further, the command
rpm -qlvc authselect-libs
shows me no config files. Indeed, this sounds like a bug to me, as the package does not care for possible configurations. Is there a way to tell the update procedure to not remove the config (without asking) ?

Please let me know how to handle.

sudo authselect opt-out

authselect: select system identity and authentication sources. | authselect System Administration | Man Pages | ManKier

Actually that package does provide the noted file as shown below.
I am not surprised that it overwrites the config, since as with most packages there exists a directory /etc/authselect/custom/ where a user is probably supposed to place their custom configs. The specific file you listed has the comment # Do not modify this file manually, use authselect instead. Any user changes will be overwritten. at the very top

# dnf provides /etc/authselect/system-auth
Last metadata expiration check: 1:38:40 ago on Mon 02 Oct 2023 11:36:39 AM CDT.
authselect-libs-1.4.2-2.fc38.i686 : Utility library used by the authselect tool
Repo        : fedora
Matched from:
Filename    : /etc/authselect/system-auth

For this package the configuration files are actually "ghost" files, which means they are owned by the package, but not provided by it. These files can be created by some post-install scripts

If you run rpm -ql --noghost authselect-libs you will see that these files are missing.