Cancelling this 2023.2 tech release issue since the support for this release has come to end of life. Cancelling this 2023.2 port case does not affect any LTS or Unity 6 Beta/Preview that remain open.
How to reproduce:
1. Open the attached project “WrapBug.zip“
2. Open “WrapBugTemplate“ UXML file
3. Observe the “#text“ Label
Expected result: The red background expands with the text
Actual result: The red background doesn’t expand with the text