Can a Bitcoin wallet recover the coins but lose all my transaction labels?

Yes. Seed phrases normally restore signing keys, not necessarily the local notes used to identify deposits, invoices or UTXOs. BIP329 defines a proposed interoperable wallet-label export format.

The answer

Yes. Seed phrases normally restore signing keys, not necessarily the local notes used to identify deposits, invoices or UTXOs. BIP329 defines a proposed interoperable wallet-label export format.

What to do next

Export labels separately, encrypt the file and test import on a compatible wallet.

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