Sale of LLC Membership Interest and Capital Gain

I am trying to understand if sale of LLC membership interest is taxed as capital gain.

I am also trying to understand if the following scenario would be short-term or long-term capital gain.

Example:

1. Jo starts ABC LLC on July 30, 2021.  He is the sole owner.
2. Jo starts XYZ LLLC on June 30, 2022.  He is the sole owner.
3. Jo transfers his ownership of ABC LLC to XYZ LLC on July 1, 2022.  Now he is the sole owner of XYZ LLC which is the sole owner of ABC LLC.
4. XYZ sells 20% of ABC LLC to Peter for $100,000 on August 5, 2022.

Is the 100K taxed as short term capital gain because XYZ LLC owned ABC LLC for about 1 month?

Or is the 100K taxed as long term capital gain because LLCs are disregarded and it is viewed by the IRS as Joe owning ABC LLC the whole time, and thus it was more than a year before the sale?