The documentation says that XMP is never written to jpeg because of the risk of confusion/duplication in the case of RAW+JPEG.  Of course, whenever an identically named raw and jpeg file exist in a folder this problem exists.
In the case of shooting jpeg, as with phone or point-and-shoot, there won't be a basename with two instances, one with extension .CR2 (for example) and JPEG.   In this case it can make sense to have an xmp sidecar for the jpeg file (say, one is using Capture One which refuses to update the embedded XMP fields in a jpeg file--Denmark is different, you know--better than the rest of us--and where standards are meant to be ignored:  actually, their reason is to NEVER update an original in any way...).
In the preferences for XMP, there is a choice entitled, "Enable XMP editing for JPEG files".  I have checked this.  How do I actually update an XMP field in a JPEG file--naturally, without blowing away the values of any other fields.
(Note:  the last option on the XMP settings dialog has truncated label text.)

Dear Sir:

First, if there is an existing XMP file for a JPEG, and there is a label or rating, does FastRawViewer read it back? Second, you can try changing rating or label in FastRawViewer and see if your CaptureOne installation reads it back. And, of course, for testing purposes you can make a backup copy of the original XMP. XMP are rather simple text files, you can look into them with a text editor to see what is where and how it is changed.

Yes, you are right.  It works fine.
I confused myself.  I am writing some code to transfer xmp back into jpeg and I had images and xmp's in a test directory.  I was updating the same image in another folder and not seeing it.
It works.

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