I've had the same problem. Took me quite some time to realize why nothing is working.
I'm using debian bookworm.

dropbear-initramfs:
  Installed: 2022.83-1

dropbear-bin:
  Installed: 2022.83-1

I had to edit the file /usr/share/initramfs-tools-hooks so it also copies the dss key:
< for keytype in dss rsa ecdsa ed25519; do
---
> for keytype in rsa ecdsa ed25519; do

then

dropbearkey -t dss -f /etc/dropbear/initramfs/dropbear_dss_host_key

update-initramfs -u

And finally. Dropbear could be started!

The option DROPBEAR_OPTIONS="-E" should be default, so the user gets some kind of error message if something is not working. Would have saved me an hour or so...

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