Unable to start iio-proxy-service

I have a Lenovo Yoga-like laptop on which I am running Fedora 40. On Fedora 38/39 (I don’t remember the exact version, it detected the touch screen and auto rotated the screen albeit incorrectly)

In the current version, f40, I am unable to start iio-proxy-service. This is the result of systemctl status iio-sensor-proxy

○ iio-sensor-proxy.service - IIO Sensor Proxy service
     Loaded: loaded (/usr/lib/systemd/system/iio-sensor-proxy.service; static)
    Drop-In: /usr/lib/systemd/system/service.d
             └─10-timeout-abort.conf
     Active: inactive (dead)

Oct 23 18:23:30 systemd[1]: Starting iio-sensor-proxy.service - IIO Sensor Proxy service...
Oct 23 18:23:30 systemd[1]: Started iio-sensor-proxy.service - IIO Sensor Proxy service.
Oct 23 18:23:30 systemd[1]: iio-sensor-proxy.service: Deactivated successfully.
Oct 23 18:23:51 systemd[1]: Starting iio-sensor-proxy.service - IIO Sensor Proxy service...
Oct 23 18:23:51 systemd[1]: Started iio-sensor-proxy.service - IIO Sensor Proxy service.
Oct 23 18:23:51 systemd[1]: iio-sensor-proxy.service: Deactivated successfully.
Oct 23 19:01:12 systemd[1]: Starting iio-sensor-proxy.service - IIO Sensor Proxy service...
Oct 23 19:01:12 systemd[1]: Started iio-sensor-proxy.service - IIO Sensor Proxy service.
Oct 23 19:01:12 systemd[1]: iio-sensor-proxy.service: Deactivated successfully.

Also the autorotate on/off button in the GNOME status UI does not appear.

I suspect SELinux misconfiguration is behind this problem. Please find below the relevant journalctl logs

Oct 23 20:40:40 systemd[1]: iio-sensor-proxy.service: Deactivated successfully.
Oct 23 20:40:40 audit[1]: SERVICE_STOP pid=1 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='unit=iio-sensor-proxy comm="systemd" exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success'
Oct 23 20:40:40 gsd-power[2332]: Claiming light sensor failed: GDBus.Error:org.freedesktop.DBus.Error.ServiceUnknown: The name is not activatable
Oct 23 20:40:40 audit[483299]: CRED_DISP pid=483299 uid=1000 auid=2110 ses=3 subj=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 msg='op=PAM:setcred grantors=pam_unix acct="root" exe="/usr/bin/sudo" hostname=? addr=? terminal=/dev/pts/2 res=success'
Oct 23 20:40:40 audit[483299]: USER_END pid=483299 uid=1000 auid=2110 ses=3 subj=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 msg='op=PAM:session_close grantors=pam_keyinit,pam_limits,pam_keyinit,pam_limits,pam_systemd,pam_unix acct="root" exe="/usr/bin/sudo" hostname=? addr=? terminal=/dev/pts/2 res=success'
Oct 23 20:40:40 sudo[483299]: pam_unix(sudo:session): session closed for user root
Oct 23 20:40:40 audit[1]: SERVICE_START pid=1 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='unit=iio-sensor-proxy comm="systemd" exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success'
Oct 23 20:40:40 systemd[1]: Started iio-sensor-proxy.service - IIO Sensor Proxy service.
Oct 23 20:40:40 systemd[1]: Starting iio-sensor-proxy.service - IIO Sensor Proxy service...
Oct 23 20:40:40 audit[483299]: USER_START pid=483299 uid=1000 auid=2110 ses=3 subj=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 msg='op=PAM:session_open grantors=pam_keyinit,pam_limits,pam_keyinit,pam_limits,pam_systemd,pam_unix acct="root" exe="/usr/bin/sudo" hostname=? addr=? terminal=/dev/pts/2 res=success'

Please help me debug this problem. I have been trying to get the AVC denials and as f40, I do not get those GUI errors for SELinux denials anymore, which told me how to get to the root of the selinux problem.

Added f39, f40, gnome, selinux, touchscreen, workstation

iio-sensor-proxy is not SELinux confined in F40, there are also no AVC denials in your report