User Problem

Users want to view all their labels without needing to click an "expand labels" button. When they have more than eight labels, the ninth and any additional labels are hidden by default. This creates confusion and feels unintuitive. Especially since the suggestions take twice the space, and disabling it doesn't grant a better visibility, it keeps the eight shown labels.
Users would like to see more labels without needing to expand, since they have the space, and in some cases, they need to expand to see only one or two additional labels that would be easily visible in the list.

Suggested Solutions

Utilize the vertical space previously occupied by the suggestions section to display more labels by default, especially when the overflow is minimal (e.g., one or two additional labels).
Or just show more labels based on the space available.

Current Workarounds

Users can click the "expand labels" button to view all labels.