Thanks for checking that. Looks like
/var/lib/swtpm/.config/swtpm_setup.conf is probably causing the issue,
unless you also have a copy of that file in ~/.config/swtpm_setup.conf.
Either way, you should be able to update the configuration with

/usr/share/swtpm/swtpm-create-user-config-files --overwrite

The files in /etc/ should contain the global configurations for all
users without their own local overrides. In this case though it seems
the config creation in 22.04 at the time decided to write the local
configurations to /var/lib/swtpm, when they should be added to $HOME
instead.

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https://bugs.launchpad.net/bugs/2081995

Title:
  Cannot start libvirt/qemu VM with TPM device added

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