As it stands currently (5/31/2024) this issue is temporarily not reproducible due the ability to light blocks using fire aspect being removed in 1.21 pre-release 1.
This feature will later be re-added at a later date as noted in the 1.21 pre-release 1 change-log.

Items enchanted with fire aspect cannot light blocks like campfires or candles in a dispenser, unlike fire charges and flint & steel.

Steps to Reproduce:

1. Place a dispenser down
2. Put this sword inside the dispenser

   /give @p minecraft:wooden_sword[minecraft:enchantments={levels:{fire_aspect:2}}]
   

1. Place an unlit campfire next to the dispenser (can use a shovel if campfire is lit)
2. Activate the dispenser

Observed Behavior:

The sword is dropped onto the ground, and the campfire is not lit.

Expected Result:

The campfire would be lit, considering other items like the fire charge and flint & steel properly light the block if used.

Screenshots/Videos:

CampfireSwordFire.mp4

Notes:

1. The behavior of the fire charge is notably blocked by MC-132593
2. Related to MC-167801 MC-165738 MC-165737 MC-165736 MC-148448 MC-114111