This might be a silly question, but should

labels

be specified in both running environments (docker runner or local runner) and remote server-side (i.e. cloud UI or server UI) ??

Labels are relevant in Prefect 1.0 to match agents with scheduled flow runs they should poll for and execute. This means that labels are only relevant for all backend triggered runs (e.g. running

flow.run()

locally ignores your run configuration) regardless of which agent you use (docker, local, kubernetes, ecs, vertex)