In the US, people fear "socialism" because it is viewed as "other people telling me what I can and can't buy or do." Note this is not really different from the capitalist situation. The capitalist situation feels different though, because the phrasing is "you can buy/do whatever you want so long as you can pay for it." While the capitalist system may de facto reduce to other people controlling what can be purchased due to prices or regulatory capture or whatever, it's the veneer of choice that perpetuates it as appealing.
So summarize: One issue with "socialism" as viewed in the US is that it takes away choice. The actual effect on choice is irrelevant: it's all about the perception.
When you factor in that in the US that personal choice is often lifted up as the highest ideal - even at the expense of helping your fellow human. Even all the identity politics we are experiencing, and many of the other controversial topics - they all center around personal choice. Contrast with US boogeyman China, whose population has comparatively little interest in personal choice/image but is all about national image - and it shows.
So it's actually interesting in my view that the US Left has the image of championing personal choice in social areas but has the image of eliminating (or merely limiting) personal choice when it comes to finances. The left has that terrible dichotomy to resolve, I think, before it can really succeed. It feels like "You can be your own person with your own views and make your own choices! But you had better support giving your money and resources to these causes!"
To be fair, the US Right is not much better - it is more consistent, but it's not what I'd call better: "You should have these views! Therefore give your money and resources to these views!"
To be honest, I think both sides have missed the point. That's not really the spectrum on which we should be operating. We should be operating on a scale of how we treat our neighbors. The scale I'd use is "Do I treat my neighbors as I want to be treated, or do I treat my neighbors according to how much they impact my personal profit?" "Neighbor" here could be people or even just the environment or people on the other side of the planet.
There is a group in the US which has adopted "It's about personal profit" and they are at least honest about it. The smallest group is the group that honestly operates on "Do unto others." The most hypocritical is the group that says to do unto others but doesn't themselves do that.