View display plugin "entity reference" not using translation
Comparing TermSelection::getReferenceableEntities and ViewsSelection::getReferenceableEntities it seems like the Views entity reference selection plugin doesn't translate the entity before returning the entity labels. It should work with a core patch adding one line:

/core/modules/views/src/Plugin/EntityReferenceSelection/ViewsSelection.php:

public function getReferenceableEntities($match = NULL, $match_operator = 'CONTAINS', $limit = 0) {
  $display_name = $this-&gt;getConfiguration()['view']['display_name'];
  $arguments = $this-&gt;getConfiguration()['view']['arguments'];
  $result = [];
  if ($this-&gt;initializeView($match, $match_operator, $limit)) {
    // Get the results.
    $result = $this-&gt;view-&gt;executeDisplay($display_name, $arguments);
  }

  $return = [];
  if ($result) {
    foreach ($this-&gt;view-&gt;result as $row) {
      $entity = $row-&gt;_entity;
      // add this line to translate the entity
      $entity = \Drupal::service('entity.repository')-&gt;getTranslationFromContext($entity);
      $return[$entity-&gt;bundle()][$entity-&gt;id()] = $entity-&gt;label();
    }
  }
  return $return;
}


Edit:

This won't be necessary anymore, when https://www.drupal.org/project/drupal/issues/2174633 is fixed, then resolving the underlying problem, that the selection plugin ignores the views output.