The policy files, stored previously in /etc/qubes-rpc/policy/ , are now located in /etc/qubes/policy.d/ . Furthermore, each file must have a .policy extension, and any temporary files will no longer cause issues.
What if you change all VMs template back to fedora-34?
Does file transfer between VMs or any other functions work besides clipboard and updates?
Nothing, both actions (neither ctrl+shift+c) leave a trace in journalctl -f. Nor in sys-usb’s journal. Maybe I need to switch it to a more verbose mode.
failed to start in dom0. This was due to a typo in /etc/qubes-rpc/policy/qubes.InputMouse.
Corrected the entry and did a systemctl restart qubes-qrexec-polix-daemon.service. Now updating the templates, interVM-copy&paste and qvm-copy work again.