Docker Container files MCS labelling not being implemented in Fedora 32

In Docker version 20.10.7, build f0df350 and with SE-Linux enabled and set to enforcing mode with policy as targeted the MCS labels should be applied to containers and their files by default. I should see user:role:type:s0:c1,c34 for example but instead the category labels are not applied and I see user:role:type:s0 for files inside the container when running ls -lZ or in audit records. 

The version of Fedora is 32 with kernel version 5.6.6-300.fc32.x86_64. This would be simpler if the labels were not being applied to podman containers but when making files in podman containers the category labels are being set and working fine. Any idea as to what could be the issue.

Thanks!
 
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