Here is another strange inconsistent behavior on 2 desktops, both at the same Build 22631.2199.
- One combines the icons and hides the labels according to the settings in taskbar personalization correctly.
- Second desktop fails to hide the labels when it should and even when it is set to Combine taskbar buttons and hide labels "Always".
It also never hides the label when the App showing in the Taskbar is closed.
The only difference I can think about is that the 2 machines, is that they have a very different update history.
The one that behaves correctly has been in Beta channel for a long time and went through all the Beta updates.
The second one that fails was just updated from R.P. 22621.2134 to Beta 22631.2199.
The only way to get the labels hidden again is by rebooting, but then they show again when an app is open and never hide again till next reboot. Pretty annoying. 😜