Hi customer,
Thank you for reaching out to the Microsoft Community. I hope you're having a great day!
Regarding to seeing the "Apply Label" field suddenly appear in all your SharePoint list forms without a way to remove it can be upset, especially when you want to keep the form clean and user-friendly. You're absolutely right, it should be something you can control, and many users agree with you.
After looking into this further, it appears that currently there is no setting or option available to hide the "Apply Label" field from the form view in SharePoint lists or libraries. This field automatically appears when a retention label policy is published to the site or list.
- This issue has been acknowledged by others in the Microsoft community as well. Since it’s an expected behavior in the current design, I recommend submitting feedback in Microsoft 365 Feedback Hub
Go to: Microsoft 365 Feedback Hub →Send Feedback→ Describe your proposal in detail
Your feedback is important, Microsoft actively monitors user input to prioritize improvements. The more feedback they receive on this issue, the more likely it is to be addressed.
Also, if you're posting this question in a community forum, you can mark my reply as the answer. That way, it will appear at the top and help other users facing the same issue find it easily and send their feedback too.
I truly appreciate your understanding and cooperation.
Best Regards,
Ian-Ng - MSFT | Microsoft Community Support Specialist.