We see
systemd[1]: Failed to load new SELinux policy. Continuing with old policy.
When performing soft-reboots even if the image has not changed any policy files.
opens use seems to have similar constraints with relabeling:
https://microos.opensuse.org/blog/2024-06-13-soft-reboot/
We need to debug this a bit more and consult with SELinux folks to see if this just needs to be documented or if it's an issue we need to address somewhere in the stack.