That actually makes sense, because the swtpm user's home directory is
/var/lib/swtpm. So I guess swtpm_* commands are run as user swtpm, which
then updates that user's config files under $HOME/.config/.

Thanks for the pointers! Fixed this by editing swtpm user's config files
under its $HOME/.config/, like you suggested originally with the config
files under /etc.

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

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

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