@ultranium1 first of all, just to be sure, it is important to do sudo dnf update --refresh with the --refresh. If having done that, and rebooted after it, still does not solve your issue, then …
start a VM with TPM and then do sudo ausearch -i -m avc,user_avc,selinux_err,user_selinux_err -ts today after that. Check the last denials of the time of the started VM plus the denials 20 seconds before and after.
Does any of the denials contain comm="rpc-virtqemud" [1], comm="swtpm" [2] or comm=qemu-img [3]?
If it contains [1] or [2] plus [3] (so, [1] and [3] OR [2] and [3]), please open a new topic and post all the results of sudo ausearch -i -m avc,user_avc,selinux_err,user_selinux_err -ts today of at least 30 seconds before and after an occurrence, plus the output of sudo journalctl -r of the 30 seconds before and after the occurrence. Additionally, the output of uname -r. Also, clearly elaborate your issue and make clear that dnf update --refresh as of now with reboot does not solve the issue.
If you have only [1] or [2], or something I have not described in this post, do the same: open a new topic with the requested data.
If you have [1] and [2] but not [3], we might proceed here: TPM Does Not Work Virt-Manager Fedora 40
If you have only [3], let us know to proceed here: but in this case please provide the data (which I asked for when opening a new topic) instead in here.
I would not call that a solution 
But I understand your situation of course.