Assuming with "Tools" -> "Nodes as label" you mean "Tools" -> "Fit Node to Label" and with "Tools" -> "Labels as Nodes" you mean "Tools" -> "Fit Label to Node", the behavior you describe is actually not a bug.
These tools only consider the first label of each node on purpose. For nodes with multiple labels the "correct" size very much depends on user expectation. Thus it is very hard to implement a correct behavior for "Fit Node to Label" and "Fit Label to Node" with regards to nodes with multiple labels.
(I understand that for the special case of entity nodes, the "correct" behavior is obvious. However, this obvious behavior is based on semantic information that is not available to the "Fit Node to Label" and "Fit Label to Node" tools.)