To update this, if you are using the latest version (v3.2), you can alternatively set the On change microflow for the label to be added to the entity and saved to the database. In that microflow, you need to commit the entity that is passed in. You should also Refresh in client, otherwise you might get some odd behavior.
I have added an Issue to track that this is not the standard behavior.
If this widget doesn't work as expected I would file a ticket in the support portal.