There is some confusion over this.
But first it was never official Catholic teaching that Mary Magdalene was a prostitute.
Here is an answer from Catholic Answers:
"While we don’t know definitively, there is a longstanding tradition that Mary Magdalene was both Mary of Bethany and the woman (prostitute) who dried Jesus’ tears. And while Pope St. Gregory, who served from A.D. 590 to A.D. 604, certainly advanced this tradition, it preceded him." LINK
It then gives a link that goes into this in more detail.
In brief, it seems that scripture indicates from the wording that the woman who anointed Jesus and washed his feet with her tears in Luke 7:36-50 was a prostitute. Since Mary of Bethany did something similar (John 12:1-3), some conflated her with the woman in Luke 7. Also since Mary Magdalene had 7 devils driven out (Luke 8:2) all three were assumed to be the same person.
Some say Pope Gregory suggested this in a sermon (not some official pronouncement) but I read somewhere that what he actually said was misconstrued.
So - lots of confusion.
I have no idea how a woman who washed Jesus feet and had 7 devils cast out can be labelled a prostitute. It's like saying Mary was ever-virgin when there is no proof. They all just assumptions.
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