Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?
With no annotations, the description carries the full burden. It discloses the core behavior (a label is created at the current position/selection) but omits side effects such as whether an empty text creates an unlabeled label, whether a label track is required, or what happens to the existing selection.
Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.