Is this by design? The internal symbol set cannot be used. Reported by josinoro in the german forum.
Prefs PAGE="labels"
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Label icons need to be icons that the Windows shell can display, i.e. something in a .ico, .exe or .dll file.
We have been thinking about adding a system that would extract a toolbar icon, resize it and save it to an icon somewhere automatically, to let you select them for labels without having to do that manually yourself. (Similar to what's done for Jump List commands already.) But we haven't had a chance to implement that yet.
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Thanks for clarification.
...but it's possible to choose an external PNG-file and it seems to work fine here for files and folders.