Issue Summary

While Jira Cloud UI provides an error indicating that spaces are not allowed, it actually creates the test label with a space. 

This can be very confusing and mislead users.

Steps to Reproduce

1. Open a ticket that has the Labels Field on it
2. Type "Test Label" (new label) ← Jira will complain
3. Assign it to the ticket by clicking out out Labels field <- this will fail
4. Refresh page
5. Type "Test Label" in the Labels field ← You should see it in recent labels in the dropdown.

Expected Results

As the labels with space are not allowed, they shouldn't appear as an option in the dropdown

Actual Results

Even though not allowed, the label with space appears in the dropdown.

Workaround

Currently, there is no known workaround for this behavior. A workaround will be added here when available