Changing the home folder to a symbolic link brings the following error: The location for the home folder is invalid or does not exist, it will not be applied.
I think this is due to how the isDir check in FoldersTabsSettingsPage::applySettings is done [1]. Perhaps it needs KIO::StatDetail::StatResolveSymlink ? [1] https://invent.kde.org/system/dolphin/-/blob/07da115293dacf702e398e402bc61f0ce386e87c/src/settings/interface/folderstabssettingspage.cpp#L182