Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hi Chris Northman,
This is an expected outcome. You will not be able to modify the greyed out items in the O365 admin centre, as @Ran Gao MSFT mentioned, the retention label is only allowed to changed some properties. You can use the parameters of Set-Compliance Tag cmdlet to modify label in SCC, see: Set-ComplianceTag
It's suggested to submit your feedback in Office 365 Admin UserVoice Forums, so that your idea can be heard by the engineers there and then the back-end team will be able to review. That will be an effective way to help others. Thanks for your patience.
Best,
Shawn