Useradd --btrfs-subvolume-home selinux labeling

The --btrfs-subvolume-home switch looked interesting.
Is this expected behavior?

I have been considering systemd-homed layouts. Storing a raw image file, with GPT, luks and filesystem on a btrfs seems unhealthy. So why not use the systemd-homed ability to manage a partition per user on the storage device itself? The size of the partition can be adjusted automatically as needed by systemd. There are only about 128 partitions per GPT which is not all that many users in enterprise environments but GPT can be nested. Still, I am interested in way less than 128 users per system.

That would be expected for that command since it creates an additional subvolume under /home for your users home directory.
Most users do not do that and only have the default /home subvolume with the users home directories there, as you did with ansible.

Permissions and context for that subvolume seem unusual in relation to that normally seen with a users home directory.

$ ls -lZd /home /home/*
drwxr-xr-x. 1 root root system_u:object_r:home_root_t:s0 10 Apr 25 10:52 /home
drwx------. 1 me me unconfined_u:object_r:user_home_dir_t:s0 300 Apr 25 11:52 /home/me

What happens with the content of /home/me2?
ls -lZda /home/me2/* /home/me2/.?*

Editing the content of your initial post and removing all the relevant content now makes the response and marked solution incomprehensible since the original question and information had disappeared.

Please do not ever remove the content of the initial post since it makes the responses weird and does not retain the subject of the thread.

EDIT
The OP edited the first post and obscured the total subject of this thread. The initial content of the first post is here.

Is this expected behavior?

I have been considering systemd-homed layouts. Storing a raw image file, with GPT, luks and filesystem on a btrfs seems unhealthy. So why not use the systemd-homed ability to manage a partition per user on the storage device itself? The size of the partition can be adjusted automatically as needed by systemd. There are only about 128 partitions per GPT which is not all that many users in enterprise environments but GPT can be nested. Still, I am interested in way less than 128 users per system.

The --btrfs-subvolume-home switch looked interesting.