The idea is that when a field is updated with a certain information, whether it is right or wrong, the tag can be created by automation.
For example, for a providers hiring process, when you fill in the password field with a wrong sequence to approve the budget, the label will automatically appear on the card to inform you that the demand is pending approval.
The label is much more visual by using colors and being evident on the card, identifying the action required easily and facilitating the continuity of the process.