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Solved by upgrading
After new testing with the latest versions of all applications I found that full interoperability in all combinations and synchronization directions between FRV, Lr and C1 on ratings and color labels IS possible, as long as I do NOT use the Photoshop Urgency setting in FRV. Phase One seems to have fixed the color label behavior. The label name now takes precedence in C1.

  • C1 default label names
  • Lr default label names
  • FRV "XMP Label style" = "Custom" with translated label names from C1/Lr

Please discard my previous suggestion.
My issue was revolved. Thank you for your attention.