Doesn't appear to be isolated to Fedora or Linux in general. Getting the same thing on Windows 10 Enterprise LTSC x64 as of the March 24 2023 build.
Can confirm on OpenSUSE Tumbleweed and native (non-flatpak) installation.
I saw an update related to this issue in the changelog however it seems something is still missing

+1, same problem
Linux Mint Cinnamon 21.1
Running Apr 28 2023 build on Windows 10 Home. Same issue here. Attempted turning the setting on and off, restarting steam etc with no luck. Seems to ignore it quite reliably.
Nothing extracted yet.
Your system information
Please describe your issue in as much detail as possible:
When you set a bandwidth limit in the steam settings, steam sometimes applies it and sometimes doesn't. I don't know what triggers it to not work. But when it doesn't it uses up all the available bandwidth on my network
Steps for reproducing this issue: