Dan,
Your CR2 file has embedded XMP in it and it has an XMP sidecar file. Both the CR2 and the XMP sidecar file have the following tag in them:
<xap:Label>Winner</xap:Label>
Also, the embedded XMP and sidecar XMP are out of sync. The sidecar XMP has Camera RAW adjustments and duplicate EXIF data in it but the embedded XMP does not. Have you set PM to not modify RAW files after you previously instructed it to embed XMP into RAW files? We always recommend that people using Adobe products do not embed XMP into their RAW files. Embedding IPTC is also not recommended by us but shouldn't cause any problems.
There is no Red label anywhere in the files so I can only guess that LR is caching that information in its database.
As for your TIFF file, it has only one Label in it as so:
xmp:Label="Green"
As far as we know, LR should only care about the XMP Label tag and should use its value.
So for your RAW file, LR should show the label as Winner, and the TIFF file as Green. If it does not, then LR must be caching an old value somewhere and is using that value instead of the one in the XMP metadata.
What do your IPTC/XMP settings look like, and what do your General settings look like? Use the 'Attachments and other options' link when you're composing your reply to this message and there you'll be able to upload your JPEG format screenshots.
Thanks,
-Kirk