Vue version

3.5.13

Link to minimal reproduction

https://play.vuejs.org/#__PROD____SSR__eNp9kcFPgzAUxv+V+i67TIhBLwSXqFniPGzGcWxiEJ7QWVrSFiRZ+N9tC8MdliU9vHy/r33fez3CU9MEXYsQQ2KwbnhmcEUFIUnBOl9MZVoxTezpmGZfHJPwjOeybqRAYUjM9COFhWULCqS7rUzNnZBoo6QoV+nrZk/s2e7SmyScRGcNx6bTq0k4Z4ElGJ1L8c3K4KClsEGPzkrBdWUc1a4xTApNISaeOJZxLn/fvGZUi8uTnleY/1zQD7p3GoV3hRpVhxRmZjJVohnxer/F3tYzrGXRcuu+Aj9QS966jKPtuRWFjX3m82k3dofKMFGmet0bFPo0lAvqnIP3U7C/9XJl9P+4UXDv71Ex2C1+dqjcm3aBUfAQ3EUw/AFR/qMz

Steps to reproduce

<template>
  <div>
    <div>This is visible</div>
    <component :is="'div'" v-html="'<strong>THIS IS NOT!</strong>'" />
  </div>
</template>

What is expected?

The <component> should render in both SSR + client-only

What is actually happening?

THIS IS NOT is not rendered in SSR.

System Info

No response

Any additional comments?

reported in nuxt/nuxt#30202