The suggestions for labels should be scoped by labels used in a given field or custom field. Or perhaps limited to a project or group-specific list.

When you're working with a custom label field, the suggestion from the Jira native label field appears as an option for the custom field, and the same happens when we create a new label in the custom field, it shows as an option in the native Jira label field.

By limiting the suggestions per field, the users are presented with the correct suggested labels for that context/issue, potentially avoiding ambiguous or misleading suggestions.