Using tcpdump with a filter, on the loopback interface doesn't match any packets. Using -i lo, without a filter, or -i ppp0 port 23 does work, returing the requested packets, but ~# /usr/sbin/tcpdump -i lo port 23 doesn't (using src or dst rather that port doesn't work either)
Fixed in tcpdump-3.4-11. Thanks for the report.