Hello,
Automatic “New” label – this applies to all newly added products for the number of days set in Theme Settings > Shop > Product labels > Automatic “New” label period. This is why new products get the label even if you haven’t enabled a permanent label.
Permanent or date-based labels – these only apply if the automatic label is disabled.
Please check this manual how it works:
https://xtemos.com/docs-topic/product-labels/
Best Regards,