MilitantPoet thanks for the response, I was actually genuinely interested in the reasons why you have ended up with an LBFO team on WS2022.
You raise a number of good points, it isn't obvious that 'NIC Teaming' in Windows refers to LFBO Teaming, or that you should use Switch Embedded Teaming instead.
The docs page for LFBO Teaming should probably point to the fact that it's deprecated and replaced by SET, and then to an appropriate page on SET which includes how to set it up correctly and the pre-reqs to do so (Like the Hyper-V role).
I agree that the GUI is misleading, but still presenting the traditional and deprecated method in Server Manager, and that there is no GUI for Switch Embedded Teaming.
I also agree, that the Convert-LFBO2SET Command should have been updated with the release of WS2022 to enable support for it. I have look and it seems to use some customer binaries for reassigning the physical NICs based on OS Version, so a new binary is probably required from Microsoft to enable this to work.