Label doesn't correctly change its vertical position when zooming in/out

1. Add a label
2. Add another label next to the existing one so that it is placed below it
3. Zoom in enough for the 2nd label to move up
4. Observe: it gets stuck in the 2nd row. It will eventually move to the 1st row after a few attempts.

https://github.com/user-attachments/assets/b85a8aa5-53ab-41a1-8281-dd7ab884414f