Custom Labels deployment doesn't work

[IvanLevytskyiDataArt]

Summary

Custom Labels deployment doesn't work

Steps To Reproduce:

1. Create Custom Label metadata file (CustomLabels.labels-meta.xml)

<CustomLabels xmlns="http://soap.sforce.com/2006/04/metadata">
    <labels>
        <fullName>Contact_DuplicateFoundOnRecords</fullName>
        <language>en_US</language>
        <protected>false</protected>
        <shortDescription>Contact_DuplicateFoundOnRecords</shortDescription>
        <value>This record is duplicated in the set of records that are being inserted or updated.</value>
    </labels>
</CustomLabels>

2. Create package.xml

<?xml version="1.0" encoding="UTF-8"?>
<Package xmlns="http://soap.sforce.com/2006/04/metadata">
    <types>
        <members>Contact_DuplicateFoundOnRecords</members>
        <name>CustomLabel</name>
    </types>
    <version>49.0</version>
</Package>

3. Deploy to any Org

sfdx force:source:deploy --manifest manifest/package.xml -u %1 -l NoTestRun

Expected result

Custom label must be created on specified org.

Actual result

It doesn't create any custom labels.

Additional information

SFDX CLI Version(to find the version of the CLI engine run sfdx --version):
sfdx-cli/7.75.0-5521f40d11 win32-x64 node-v12.18.3

SFDX plugin Version(to find the version of the CLI plugin run sfdx plugins --core)

@oclif/plugin-autocomplete 0.1.5 (core)
@oclif/plugin-commands 1.3.0 (core)
@oclif/plugin-help 3.2.0 (core)
@oclif/plugin-not-found 1.2.4 (core)
@oclif/plugin-plugins 1.9.0 (core)
@oclif/plugin-update 1.3.10 (core)
@oclif/plugin-warn-if-update-available 1.7.0 (core)
@oclif/plugin-which 1.0.3 (core)
@salesforce/sfdx-trust 3.4.3 (core)
alias 1.1.2 (core)
analytics 1.12.1 (core)
config 1.1.8 (core)
generator 1.1.3 (core)
salesforcedx 49.13.0 (core)
├─ templates 49.9.1 (core)
├─ @salesforce/sfdx-plugin-lwc-test 0.1.7 (core)
├─ custom-metadata 1.0.10 (core)
├─ salesforce-alm 49.12.1 (core)
└─ apex 0.1.0 (core)
sfdx-cli 7.75.0 (core)

OS and version:
Windows 10 Enterprise

[shetzel]

Let's use #673 to track this.

I added a partial fix for custom labels in the current release candidate. Can you try installing that to see if it unblocks you?
sfdx plugins:install salesforcedx@latest-rc

It's a partial fix because it converts/deploys all custom labels in the project versus just the labels defined in the manifest. Converting/deploying specific labels is coming soon.

[IvanLevytskyiDataArt]

@shetzel
It seems to work as you described. Thank you!

[shetzel]

@IvanLevytskyiDataArt - thanks for confirming!