Cannot remove label after transferring sub-group out of its parent group

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Summary

After transferring a sub-group out of its parent group, labels from that parent group stick to issues there were added on in the sub-group's project ; however they cannot be removed anymore.

Steps to reproduce

1. Create a group, a sub-group inside that group, and a project inside that sub-group
2. Create a label in the parent group
3. Create an issue in the project, add the label from 2. to it
4. Transfer the sub-group out of the parent group
5. Go back to the issue from 3. and attempt to remove the label

Example Project

This has been reproduced here : zarunet-test-group-2/test-project#1 (closed)

What is the current bug behavior?

The offending label stays on the issue.

When clicking the X to remove the label, I can see an HTTP POST request being sent to https://gitlab.com/api/graphql ; it does respond with 200 OK, however.

What is the expected correct behavior?

The offending label is removed from the issue.

Relevant logs and/or screenshots

See zarunet-test-group-2/test-project#1 (comment 486370444)

Output of checks

This bug happens on GitLab.com