Hello @Nazim Shaikh
Yes, your interpretation is correct. Cipher suite 0x1302 is TLS_AES_256_GCM_SHA384, which is a TLS 1.3 cipher suite. Microsoft lists this cipher suite as TLS 1.3 for Windows Server 2022.
The Protocol version: Unknown shown by Schannel Event ID 36880 appears to be a Windows Server 2022 Schannel logging limitation rather than evidence that TLS 1.3 wasn't negotiated. The same behavior (Unknown, 0x1302, and exchange strength 0) has also been reported in earlier Microsoft Q&A discussions involving TLS 1.3 on Schannel.
I couldn't find a Microsoft-documented registry setting or specific KB/hotfix that changes the Server 2022 event output from Unknown to TLS 1.3. I therefore wouldn't recommend changing Schannel registry settings simply to correct the event's display value.
For verification, the most reliable approach is to capture the handshake using Wireshark or another network trace and inspect the ServerHello. For TLS 1.3, check the supported_versions extension for 0x0304 and confirm the negotiated cipher suite. The 0x1302 value you're already seeing is also strong evidence of TLS 1.3 because Microsoft documents that suite specifically for TLS 1.3.
So this looks primarily like a logging/display difference between Windows Server 2022 and Server 2025, not a TLS negotiation failure.
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