With the current stable version (9.2) the output is correct:
OneLoopSimplify[FVD[p, mu] SPD[p, k] FAD[{p}, {p, m}], p]
(FeynAmpDenominator[PropagatorDenominator[Momentum[p, D], m]]*
Pair[LorentzIndex[mu, D], Momentum[k, D]])/D
However, I added your example to the unit tests, just in case.
Cheers,
Vladyslav
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