diff --git a/changes/32073-cpie-integration-test2 b/changes/32073-cpie-integration-test2
new file mode 100644
index 0000000000..63f585eb93
--- /dev/null
+++ b/changes/32073-cpie-integration-test2
@@ -0,0 +1,2 @@
+* `labels_exclude_any` can now be combined with `labels_include_all` or `labels_include_any` when uploading MDM configuration profiles, allowing hosts to be included by label membership and excluded by another set of labels simultaneously.
+* Fleet now prevents deleting a label that is in use by an MDM configuration profile or declaration, returning an error instead of silently breaking the profile's label targeting.
diff --git a/cmd/fleetctl/fleetctl/gitops.go b/cmd/fleetctl/fleetctl/gitops.go
index 676aa041f6..53f809e868 100644
--- a/cmd/fleetctl/fleetctl/gitops.go
+++ b/cmd/fleetctl/fleetctl/gitops.go
@@ -851,24 +851,19 @@ func getLabelUsage(config *spec.GitOps) (map[string][]LabelUsage, error) {
 		if osSettings, ok := getCustomSettings(osSettingName); ok {
 			for _, setting := range osSettings {
 				var labels []string
-				err := fmt.Errorf("configuration profile '%s' has multiple label keys; please choose one of `labels_include_any`, `labels_include_all` or `labels_exclude_any`.", filepath.Base(setting.Path))
-
 				if len(setting.LabelsIncludeAny) > 0 {
 					labels = setting.LabelsIncludeAny
 				}
+				if len(setting.LabelsIncludeAll) > 0 && len(setting.LabelsIncludeAny) > 0 {
+					return nil, fmt.Errorf("Couldn't edit configuration profiles. For profile '%s', only one of \"labels_include_all\" or \"labels_include_any\" can be included.", filepath.Base(setting.Path))
+				}
 				if len(setting.LabelsIncludeAll) > 0 {
-					if len(labels) > 0 {
-						return nil, err
-					}
 					labels = setting.LabelsIncludeAll
 				}
-				if len(setting.LabelsExcludeAny) > 0 {
-					if len(labels) > 0 {
-						return nil, err
-					}
-					labels = setting.LabelsExcludeAny
+				if overlap := fleet.ProfileLabelOverlap(labels, setting.LabelsExcludeAny); overlap != "" {
+					return nil, fmt.Errorf("configuration profile '%s': label %q cannot appear in both include and exclude lists.", filepath.Base(setting.Path), overlap)
 				}
-
+				labels = append(labels, setting.LabelsExcludeAny...)
 				updateLabelUsage(labels, filepath.Base(setting.Path), "configuration profile", result)
 			}
 		}
diff --git a/cmd/fleetctl/fleetctl/gitops_label_usage_test.go b/cmd/fleetctl/fleetctl/gitops_label_usage_test.go
index 27c9a7954d..67b4fd1446 100644
--- a/cmd/fleetctl/fleetctl/gitops_label_usage_test.go
+++ b/cmd/fleetctl/fleetctl/gitops_label_usage_test.go
@@ -3,68 +3,115 @@ package fleetctl
 import (
 	"testing"
 
+	"github.com/fleetdm/fleet/v4/pkg/optjson"
 	"github.com/fleetdm/fleet/v4/pkg/spec"
 	"github.com/fleetdm/fleet/v4/server/fleet"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 )
 
+func makeProfileConfig(t *testing.T, profiles []fleet.MDMProfileSpec, osName string) *spec.GitOps {
+	t.Helper()
+	config := &spec.GitOps{}
+	switch osName {
+	case "macos":
+		config.Controls.MacOSSettings = &fleet.MacOSSettings{CustomSettings: profiles}
+	case "windows":
+		config.Controls.WindowsSettings = &fleet.WindowsSettings{CustomSettings: optjson.SetSlice(profiles)}
+	default:
+		t.Fatalf("unknown os: %s", osName)
+	}
+	return config
+}
+
 func TestGetLabelUsageProfilePathShortened(t *testing.T) {
 	// Simulate what happens when spec parsing resolves a relative path to absolute.
 	absPath := "/home/runner/work/Detroit-GitOps-Workshop/Detroit-GitOps-Workshop/lib/macos/configuration-profiles/disable-bluetooth-file-sharing.mobileconfig"
+	profiles := []fleet.MDMProfileSpec{{Path: absPath, LabelsIncludeAll: []string{"nonexistent-label"}}}
 
-	config := &spec.GitOps{
-		Controls: spec.GitOpsControls{
-			MacOSSettings: &fleet.MacOSSettings{
-				CustomSettings: []fleet.MDMProfileSpec{
-					{
-						Path:             absPath,
-						LabelsIncludeAll: []string{"nonexistent-label"},
-					},
-				},
-			},
-		},
+	for _, osName := range []string{"macos", "windows"} {
+		t.Run(osName, func(t *testing.T) {
+			usage, err := getLabelUsage(makeProfileConfig(t, profiles, osName))
+			require.NoError(t, err)
+
+			// The label "nonexistent-label" should be in the usage map.
+			entries, ok := usage["nonexistent-label"]
+			require.True(t, ok, "expected label to be in usage map")
+			require.Len(t, entries, 1)
+
+			// The Name should be the base filename, not the full absolute path.
+			assert.Equal(t, "disable-bluetooth-file-sharing.mobileconfig", entries[0].Name,
+				"profile path should be shortened to just the filename")
+
+			// The Type should be "configuration profile", not "MDM Profile".
+			assert.Equal(t, "configuration profile", entries[0].Type,
+				"type should say 'configuration profile' not 'MDM Profile'")
+		})
 	}
-
-	usage, err := getLabelUsage(config)
-	require.NoError(t, err)
-
-	// The label "nonexistent-label" should be in the usage map.
-	entries, ok := usage["nonexistent-label"]
-	require.True(t, ok, "expected label to be in usage map")
-	require.Len(t, entries, 1)
-
-	// The Name should be the base filename, not the full absolute path.
-	assert.Equal(t, "disable-bluetooth-file-sharing.mobileconfig", entries[0].Name,
-		"profile path should be shortened to just the filename")
-
-	// The Type should be "configuration profile", not "MDM Profile".
-	assert.Equal(t, "configuration profile", entries[0].Type,
-		"type should say 'configuration profile' not 'MDM Profile'")
 }
 
 func TestGetLabelUsageMultipleLabelKeysError(t *testing.T) {
 	absPath := "/absolute/path/to/profile.mobileconfig"
+	profiles := []fleet.MDMProfileSpec{{
+		Path:             absPath,
+		LabelsIncludeAll: []string{"label-a"},
+		LabelsIncludeAny: []string{"label-b"},
+	}}
 
-	config := &spec.GitOps{
-		Controls: spec.GitOpsControls{
-			MacOSSettings: &fleet.MacOSSettings{
-				CustomSettings: []fleet.MDMProfileSpec{
-					{
-						Path:             absPath,
-						LabelsIncludeAll: []string{"label-a"},
-						LabelsIncludeAny: []string{"label-b"},
-					},
-				},
-			},
-		},
+	// Two include modes together is still invalid.
+	for _, osName := range []string{"macos", "windows"} {
+		t.Run(osName, func(t *testing.T) {
+			_, err := getLabelUsage(makeProfileConfig(t, profiles, osName))
+			require.Error(t, err)
+
+			// Error should use "configuration profile" and the short filename.
+			assert.Contains(t, err.Error(), "configuration profile")
+			assert.Contains(t, err.Error(), "profile.mobileconfig")
+			assert.NotContains(t, err.Error(), "/absolute/path/to/")
+		})
+	}
+}
+
+func TestGetLabelUsageIncludeExcludeOverlapError(t *testing.T) {
+	absPath := "/absolute/path/to/profile.mobileconfig"
+
+	// A label appearing in both include and exclude is rejected before any apply.
+	cases := []fleet.MDMProfileSpec{
+		{Path: absPath, LabelsIncludeAll: []string{"shared-label"}, LabelsExcludeAny: []string{"shared-label"}},
+		{Path: absPath, LabelsIncludeAny: []string{"shared-label"}, LabelsExcludeAny: []string{"shared-label"}},
+		{Path: absPath, LabelsIncludeAll: []string{"ok-label", "shared-label"}, LabelsExcludeAny: []string{"shared-label", "other-label"}},
+	}
+	for _, profileSpec := range cases {
+		for _, osName := range []string{"macos", "windows"} {
+			t.Run(osName, func(t *testing.T) {
+				_, err := getLabelUsage(makeProfileConfig(t, []fleet.MDMProfileSpec{profileSpec}, osName))
+				require.Error(t, err)
+				assert.Contains(t, err.Error(), "shared-label")
+				assert.Contains(t, err.Error(), "profile.mobileconfig")
+			})
+		}
+	}
+}
+
+func TestGetLabelUsageIncludeAndExcludeAllowed(t *testing.T) {
+	absPath := "/absolute/path/to/profile.mobileconfig"
+
+	// include + exclude combination is valid for configuration profiles.
+	cases := []fleet.MDMProfileSpec{
+		{Path: absPath, LabelsIncludeAll: []string{"include-label"}, LabelsExcludeAny: []string{"exclude-label"}},
+		{Path: absPath, LabelsIncludeAny: []string{"include-label"}, LabelsExcludeAny: []string{"exclude-label"}},
+		{Path: absPath, LabelsExcludeAny: []string{"exclude-label"}},
+	}
+	for _, profileSpec := range cases {
+		for _, osName := range []string{"macos", "windows"} {
+			t.Run(osName, func(t *testing.T) {
+				usage, err := getLabelUsage(makeProfileConfig(t, []fleet.MDMProfileSpec{profileSpec}, osName))
+				require.NoError(t, err)
+				allLabels := append(profileSpec.LabelsIncludeAll, append(profileSpec.LabelsIncludeAny, profileSpec.LabelsExcludeAny...)...) //nolint:gocritic
+				for _, label := range allLabels {
+					assert.Contains(t, usage, label)
+				}
+			})
+		}
 	}
-
-	_, err := getLabelUsage(config)
-	require.Error(t, err)
-
-	// Error should use "configuration profile" and the short filename.
-	assert.Contains(t, err.Error(), "configuration profile")
-	assert.Contains(t, err.Error(), "profile.mobileconfig")
-	assert.NotContains(t, err.Error(), "/absolute/path/to/")
 }
diff --git a/cmd/fleetctl/fleetctl/gitops_test.go b/cmd/fleetctl/fleetctl/gitops_test.go
index 19a6ac0277..5ac0277d1e 100644
--- a/cmd/fleetctl/fleetctl/gitops_test.go
+++ b/cmd/fleetctl/fleetctl/gitops_test.go
@@ -3647,13 +3647,13 @@ func TestGitOpsCustomSettings(t *testing.T) {
 	}{
 		{"testdata/gitops/global_macos_windows_custom_settings_valid.yml", ""},
 		{"testdata/gitops/global_macos_custom_settings_valid_deprecated.yml", ""},
-		{"testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml", "please choose one of `labels_include_any`, `labels_include_all` or `labels_exclude_any`"},
-		{"testdata/gitops/global_windows_custom_settings_invalid_label_mix_2.yml", "please choose one of `labels_include_any`, `labels_include_all` or `labels_exclude_any`"},
+		{"testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml", `only one of "labels_include_all" or "labels_include_any" can be included`},
+		{"testdata/gitops/global_windows_custom_settings_invalid_label_mix_2.yml", `only one of "labels_include_all" or "labels_include_any" can be included`},
 		{"testdata/gitops/global_windows_custom_settings_unknown_label.yml", `Please create the missing labels, or update your settings to not refer to these labels.`},
 		{"testdata/gitops/team_macos_windows_custom_settings_valid.yml", ""},
 		{"testdata/gitops/team_macos_custom_settings_valid_deprecated.yml", ""},
-		{"testdata/gitops/team_macos_windows_custom_settings_invalid_labels_mix.yml", "please choose one of `labels_include_any`, `labels_include_all` or `labels_exclude_any`"},
-		{"testdata/gitops/team_macos_windows_custom_settings_invalid_labels_mix_2.yml", "please choose one of `labels_include_any`, `labels_include_all` or `labels_exclude_any`"},
+		{"testdata/gitops/team_macos_windows_custom_settings_invalid_labels_mix.yml", `only one of "labels_include_all", "labels_include_any" or "labels" can be included`},
+		{"testdata/gitops/team_macos_windows_custom_settings_invalid_labels_mix_2.yml", `only one of "labels_include_all", "labels_include_any" or "labels" can be included`},
 		{"testdata/gitops/team_macos_windows_custom_settings_unknown_label.yml", `Please create the missing labels, or update your settings to not refer to these labels.`},
 	}
 	for _, c := range cases {
diff --git a/cmd/fleetctl/fleetctl/testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml b/cmd/fleetctl/fleetctl/testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml
index 1a100de6f3..4c0d7f6a9a 100644
--- a/cmd/fleetctl/fleetctl/testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml
+++ b/cmd/fleetctl/fleetctl/testdata/gitops/global_windows_custom_settings_invalid_label_mix.yml
@@ -4,7 +4,7 @@ controls:
       - path: ./lib/windows-screenlock.xml
         labels_include_all:
           - B
-        labels_exclude_any:
+        labels_include_any:
           - C
   scripts:
   enable_disk_encryption: false
diff --git a/ee/server/service/teams.go b/ee/server/service/teams.go
index 9d93b126dd..1003ae01fe 100644
--- a/ee/server/service/teams.go
+++ b/ee/server/service/teams.go
@@ -1440,9 +1440,9 @@ func (svc *Service) createTeamFromSpec(
 	if enableDiskEncryption && svc.config.Server.PrivateKey == "" {
 		return nil, ctxerr.New(ctx, "Missing required private key. Learn how to configure the private key here: https://fleetdm.com/learn-more-about/fleet-server-private-key")
 	}
-	validateTeamCustomSettings(invalid, "macos", macOSSettings.CustomSettings)
-	validateTeamCustomSettings(invalid, "windows", spec.MDM.WindowsSettings.CustomSettings.Value)
-	validateTeamCustomSettings(invalid, "android", spec.MDM.AndroidSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "macos", macOSSettings.CustomSettings)
+	fleet.ValidateMDMProfileSpecs(invalid, "windows", spec.MDM.WindowsSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "android", spec.MDM.AndroidSettings.CustomSettings.Value)
 
 	var hostExpirySettings fleet.HostExpirySettings
 	if spec.HostExpirySettings != nil {
@@ -1845,9 +1845,9 @@ func (svc *Service) editTeamFromSpec(
 		team.Config.HostExpirySettings = *spec.HostExpirySettings
 	}
 
-	validateTeamCustomSettings(invalid, "apple", team.Config.MDM.MacOSSettings.CustomSettings)
-	validateTeamCustomSettings(invalid, "windows", team.Config.MDM.WindowsSettings.CustomSettings.Value)
-	validateTeamCustomSettings(invalid, "android", team.Config.MDM.AndroidSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "apple", team.Config.MDM.MacOSSettings.CustomSettings)
+	fleet.ValidateMDMProfileSpecs(invalid, "windows", team.Config.MDM.WindowsSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "android", team.Config.MDM.AndroidSettings.CustomSettings.Value)
 
 	// If host status webhook is not provided, do not change it
 	if spec.WebhookSettings.HostStatusWebhook != nil {
@@ -2061,25 +2061,6 @@ func (svc *Service) editTeamFromSpec(
 	return nil
 }
 
-func validateTeamCustomSettings(invalid *fleet.InvalidArgumentError, prefix string, customSettings []fleet.MDMProfileSpec) {
-	for i, prof := range customSettings {
-		count := 0
-		for _, b := range []bool{len(prof.Labels) > 0, len(prof.LabelsIncludeAll) > 0, len(prof.LabelsIncludeAny) > 0, len(prof.LabelsExcludeAny) > 0} {
-			if b {
-				count++
-			}
-		}
-		if count > 1 {
-			invalid.Append(fmt.Sprintf("%s_settings.configuration_profiles", prefix),
-				fmt.Sprintf(`Couldn't edit %s_settings.configuration_profiles. For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`, prefix))
-		}
-		if len(prof.Labels) > 0 {
-			customSettings[i].LabelsIncludeAll = customSettings[i].Labels
-			customSettings[i].Labels = nil
-		}
-	}
-}
-
 func (svc *Service) validateTeamCalendarIntegrations(
 	calendarIntegration *fleet.TeamGoogleCalendarIntegration,
 	appCfg *fleet.AppConfig, dryRun bool, invalid *fleet.InvalidArgumentError,
diff --git a/server/datastore/mysql/apple_mdm_test.go b/server/datastore/mysql/apple_mdm_test.go
index 8f789c071c..c7b57f6bcd 100644
--- a/server/datastore/mysql/apple_mdm_test.go
+++ b/server/datastore/mysql/apple_mdm_test.go
@@ -309,7 +309,7 @@ func testNewMDMAppleConfigProfileDuplicateIdentifier(t *testing.T, ds *Datastore
 	// simulate a broken label by nullifying its id in the join table
 	// (direct DeleteLabel is now blocked when referenced by a profile)
 	ExecAdhocSQL(t, ds, func(q sqlx.ExtContext) error {
-		_, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE label_id = ?`, lbl.ID)
+		_, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE apple_profile_uuid = ? AND label_id = ?`, labelProf.ProfileUUID, lbl.ID)
 		return err
 	})
 
diff --git a/server/datastore/mysql/labels.go b/server/datastore/mysql/labels.go
index 21c2baa9fc..6b0fc02c1e 100644
--- a/server/datastore/mysql/labels.go
+++ b/server/datastore/mysql/labels.go
@@ -699,6 +699,19 @@ func (ds *Datastore) DeleteLabel(ctx context.Context, name string, filter fleet.
 			}
 			return ctxerr.Wrap(ctx, err, "getting label id to delete")
 		}
+		var usedByProfile bool
+		if err := sqlx.GetContext(ctx, tx, &usedByProfile, `
+			SELECT EXISTS(
+				SELECT 1 FROM mdm_configuration_profile_labels WHERE label_id = ?
+				UNION ALL
+				SELECT 1 FROM mdm_declaration_labels WHERE label_id = ?
+			)`, labelID, labelID); err != nil {
+			return ctxerr.Wrap(ctx, err, "checking if label is used by configuration profiles")
+		}
+		if usedByProfile {
+			return ctxerr.Wrap(ctx, foreignKey("configuration profile labels", name), "delete label")
+		}
+
 		if err := deleteLabelsInTx(ctx, tx, []uint{labelID}); err != nil {
 			if isMySQLForeignKey(err) {
 				return ctxerr.Wrap(ctx, foreignKey("labels", name), "delete label")
diff --git a/server/datastore/mysql/labels_test.go b/server/datastore/mysql/labels_test.go
index 5287173b3a..d493d21cbc 100644
--- a/server/datastore/mysql/labels_test.go
+++ b/server/datastore/mysql/labels_test.go
@@ -1351,6 +1351,54 @@ func testDeleteLabel(t *testing.T, db *Datastore) {
 	// Admin with team filter can delete
 	err = db.DeleteLabel(ctx, team2Label.Name, fleet.TeamFilter{User: adminUser, TeamID: &team2.ID})
 	require.NoError(t, err)
+
+	// create a label referenced by a configuration profile — deletion must be blocked
+	l3, err := db.NewLabel(ctx, &fleet.Label{
+		Name:  t.Name() + "3",
+		Query: "query3",
+	})
+	require.NoError(t, err)
+
+	prof, err := db.NewMDMAppleConfigProfile(ctx, *generateAppleCP("test-prof", "com.example.test", 0), nil)
+	require.NoError(t, err)
+
+	ExecAdhocSQL(t, db, func(q sqlx.ExtContext) error {
+		_, err := q.ExecContext(ctx,
+			`INSERT INTO mdm_configuration_profile_labels (apple_profile_uuid, label_name, label_id) VALUES (?, ?, ?)`,
+			prof.ProfileUUID, l3.Name, l3.ID,
+		)
+		return err
+	})
+
+	err = db.DeleteLabel(ctx, l3.Name, fleet.TeamFilter{User: &fleet.User{GlobalRole: ptr.String(fleet.RoleAdmin)}})
+	require.Error(t, err)
+	require.True(t, fleet.IsForeignKey(err))
+
+	// create a label referenced only by a declaration — deletion must also be blocked
+	l4, err := db.NewLabel(ctx, &fleet.Label{
+		Name:  t.Name() + "4",
+		Query: "query4",
+	})
+	require.NoError(t, err)
+
+	decl, err := db.NewMDMAppleDeclaration(ctx, &fleet.MDMAppleDeclaration{
+		Identifier: "com.example.decl-test",
+		Name:       "test-decl",
+		RawJSON:    json.RawMessage(`{"Identifier": "com.example.decl-test"}`),
+	}, nil)
+	require.NoError(t, err)
+
+	ExecAdhocSQL(t, db, func(q sqlx.ExtContext) error {
+		_, err := q.ExecContext(ctx,
+			`INSERT INTO mdm_declaration_labels (apple_declaration_uuid, label_name, label_id) VALUES (?, ?, ?)`,
+			decl.DeclarationUUID, l4.Name, l4.ID,
+		)
+		return err
+	})
+
+	err = db.DeleteLabel(ctx, l4.Name, fleet.TeamFilter{User: &fleet.User{GlobalRole: ptr.String(fleet.RoleAdmin)}})
+	require.Error(t, err)
+	require.True(t, fleet.IsForeignKey(err))
 }
 
 func testLabelsSummaryAndListTeamFiltering(t *testing.T, db *Datastore) {
diff --git a/server/datastore/mysql/mdm_test.go b/server/datastore/mysql/mdm_test.go
index a47831bc15..d99f9df2d8 100644
--- a/server/datastore/mysql/mdm_test.go
+++ b/server/datastore/mysql/mdm_test.go
@@ -2383,11 +2383,15 @@ func testGetHostMDMProfilesExpectedForVerification(t *testing.T, ds *Datastore)
 		require.NoError(t, err)
 		require.Len(t, profs, 3)
 
-		// Null label reference first (FK is now RESTRICT), then delete — the profile
-		// will appear broken and we shouldn't see it in the results
-		simulateBrokenLabel(t, ds, ctx, testLabel4.Name)
-		err = ds.DeleteLabel(ctx, testLabel4.Name, fleet.TeamFilter{User: &fleet.User{GlobalRole: ptr.String(fleet.RoleAdmin)}})
-		require.NoError(t, err)
+		// Simulate the label being broken — direct DeleteLabel is now blocked when
+		// referenced by a profile, so we nullify label_id in the join tables instead.
+		ExecAdhocSQL(t, ds, func(q sqlx.ExtContext) error {
+			if _, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE label_id = ?`, testLabel4.ID); err != nil {
+				return err
+			}
+			_, err := q.ExecContext(ctx, `UPDATE mdm_declaration_labels SET label_id = NULL WHERE label_id = ?`, testLabel4.ID)
+			return err
+		})
 
 		return team.ID, host
 	}
@@ -2886,11 +2890,15 @@ func testGetHostMDMProfilesExpectedForVerification(t *testing.T, ds *Datastore)
 		require.NoError(t, err)
 		require.Len(t, profs, 3)
 
-		// Null label reference first (FK is now RESTRICT), then delete — the profile
-		// will appear broken and we shouldn't see it in the results
-		simulateBrokenLabel(t, ds, ctx, label.Name)
-		err = ds.DeleteLabel(ctx, label.Name, fleet.TeamFilter{User: &fleet.User{GlobalRole: ptr.String(fleet.RoleAdmin)}})
-		require.NoError(t, err)
+		// Simulate the label being broken — direct DeleteLabel is now blocked when
+		// referenced by a profile, so we nullify label_id in the join tables instead.
+		ExecAdhocSQL(t, ds, func(q sqlx.ExtContext) error {
+			if _, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE label_id = ?`, label.ID); err != nil {
+				return err
+			}
+			_, err := q.ExecContext(ctx, `UPDATE mdm_declaration_labels SET label_id = NULL WHERE label_id = ?`, label.ID)
+			return err
+		})
 
 		return team.ID, host
 	}
diff --git a/server/datastore/mysql/microsoft_mdm_test.go b/server/datastore/mysql/microsoft_mdm_test.go
index 88acbcd2af..be87b896c6 100644
--- a/server/datastore/mysql/microsoft_mdm_test.go
+++ b/server/datastore/mysql/microsoft_mdm_test.go
@@ -2851,7 +2851,7 @@ func testMDMWindowsConfigProfiles(t *testing.T, ds *Datastore) {
 	// simulate a broken label by nullifying its id in the join table
 	// (direct DeleteLabel is now blocked when referenced by a profile)
 	ExecAdhocSQL(t, ds, func(q sqlx.ExtContext) error {
-		_, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE label_id = ?`, label.ID)
+		_, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL WHERE windows_profile_uuid = ? AND label_id = ?`, profWithLabel.ProfileUUID, label.ID)
 		return err
 	})
 
diff --git a/server/fleet/mdm.go b/server/fleet/mdm.go
index 852be6d9ad..529431eadd 100644
--- a/server/fleet/mdm.go
+++ b/server/fleet/mdm.go
@@ -1380,3 +1380,46 @@ const (
 	// SSOInitiatorAppleMDMSSO is used for automatic MDM Apple enrollment SSO flow.
 	SSOInitiatorAppleMDMSSO = "mdm_sso"
 )
+
+// ValidateMDMProfileSpecs validates the label configuration for each profile spec: exactly one
+// include mode may be set, no label may appear in both include and exclude lists, and the legacy
+// Labels field is normalised to LabelsIncludeAll. Errors are accumulated into invalid.
+func ValidateMDMProfileSpecs(invalid *InvalidArgumentError, prefix string, customSettings []MDMProfileSpec) {
+	for i, prof := range customSettings {
+		includeCount := 0
+		for _, b := range []bool{len(prof.Labels) > 0, len(prof.LabelsIncludeAll) > 0, len(prof.LabelsIncludeAny) > 0} {
+			if b {
+				includeCount++
+			}
+		}
+		if includeCount > 1 {
+			invalid.Append(fmt.Sprintf("%s_settings.configuration_profiles", prefix),
+				fmt.Sprintf(`Couldn't edit %s_settings.configuration_profiles. For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`, prefix))
+		}
+		includeLabels := slices.Concat(prof.Labels, prof.LabelsIncludeAll, prof.LabelsIncludeAny)
+		if overlap := ProfileLabelOverlap(includeLabels, prof.LabelsExcludeAny); overlap != "" {
+			invalid.Append(fmt.Sprintf("%s_settings.configuration_profiles", prefix),
+				fmt.Sprintf(`Couldn't edit %s_settings.configuration_profiles. Label %q cannot appear in both include and exclude lists.`, prefix, overlap))
+		}
+		if len(prof.Labels) > 0 {
+			customSettings[i].LabelsIncludeAll = customSettings[i].Labels
+			customSettings[i].Labels = nil
+		}
+	}
+}
+
+// ProfileLabelOverlap returns the first label name that appears in both
+// the include list and the exclude list, or an empty string if there is none.
+// include should be the union of labels_include_all and labels_include_any.
+func ProfileLabelOverlap(include, exclude []string) string {
+	seen := make(map[string]struct{}, len(include))
+	for _, n := range include {
+		seen[n] = struct{}{}
+	}
+	for _, n := range exclude {
+		if _, overlapExists := seen[n]; overlapExists {
+			return n
+		}
+	}
+	return ""
+}
diff --git a/server/fleet/service.go b/server/fleet/service.go
index 7d34976a8e..f85d1f9835 100644
--- a/server/fleet/service.go
+++ b/server/fleet/service.go
@@ -913,9 +913,9 @@ type Service interface {
 	GetHostDEPAssignmentDetails(ctx context.Context, hostID uint) (*HostDEPAssignment, *godep.Device, error)
 
 	// NewMDMAppleConfigProfile creates a new configuration profile for the specified team.
-	NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labels []string, labelsMembershipMode MDMLabelsMode) (*MDMAppleConfigProfile, error)
+	NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labelsInclude []string, labelsMembershipMode MDMLabelsMode, labelsExcludeAny []string) (*MDMAppleConfigProfile, error)
 	// NewMDMAppleConfigProfileWithPayload creates a new declaration for the specified team.
-	NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labels []string, name string, labelsMembershipMode MDMLabelsMode) (*MDMAppleDeclaration, error)
+	NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labelsInclude []string, name string, labelsMembershipMode MDMLabelsMode, labelsExcludeAny []string) (*MDMAppleDeclaration, error)
 
 	// GetMDMAppleConfigProfileByDeprecatedID retrieves the specified Apple
 	// configuration profile via its numeric ID. This method is deprecated and
@@ -1212,7 +1212,7 @@ type Service interface {
 
 	// NewMDMWindowsConfigProfile creates a new Windows configuration profile for
 	// the specified team.
-	NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode MDMLabelsMode) (*MDMWindowsConfigProfile, error)
+	NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode MDMLabelsMode, labelsExcludeAny []string) (*MDMWindowsConfigProfile, error)
 
 	// NewMDMUnsupportedConfigProfile is called when a profile with an
 	// unsupported extension is uploaded.
@@ -1248,7 +1248,7 @@ type Service interface {
 	// Android MDM
 
 	// NewMDMAndroidConfigProfile creates a new Android configuration profile
-	NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode MDMLabelsMode) (*MDMAndroidConfigProfile, error)
+	NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode MDMLabelsMode, labelsExcludeAny []string) (*MDMAndroidConfigProfile, error)
 
 	// DeleteMDMAndroidConfigProfile deletes the specified Android profile.
 	DeleteMDMAndroidConfigProfile(ctx context.Context, profileUUID string) error
diff --git a/server/mock/service/service_mock.go b/server/mock/service/service_mock.go
index 184f8b49de..ae3d87f421 100644
--- a/server/mock/service/service_mock.go
+++ b/server/mock/service/service_mock.go
@@ -574,9 +574,9 @@ type GetHostDEPAssignmentFunc func(ctx context.Context, host *fleet.Host) (*flee
 
 type GetHostDEPAssignmentDetailsFunc func(ctx context.Context, hostID uint) (*fleet.HostDEPAssignment, *godep.Device, error)
 
-type NewMDMAppleConfigProfileFunc func(ctx context.Context, teamID uint, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleConfigProfile, error)
+type NewMDMAppleConfigProfileFunc func(ctx context.Context, teamID uint, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleConfigProfile, error)
 
-type NewMDMAppleDeclarationFunc func(ctx context.Context, teamID uint, data []byte, labels []string, name string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleDeclaration, error)
+type NewMDMAppleDeclarationFunc func(ctx context.Context, teamID uint, data []byte, labelsInclude []string, name string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleDeclaration, error)
 
 type GetMDMAppleConfigProfileByDeprecatedIDFunc func(ctx context.Context, profileID uint) (*fleet.MDMAppleConfigProfile, error)
 
@@ -744,7 +744,7 @@ type DeleteMDMWindowsConfigProfileFunc func(ctx context.Context, profileUUID str
 
 type GetMDMWindowsProfilesSummaryFunc func(ctx context.Context, teamID *uint) (*fleet.MDMProfilesSummary, error)
 
-type NewMDMWindowsConfigProfileFunc func(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMWindowsConfigProfile, error)
+type NewMDMWindowsConfigProfileFunc func(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMWindowsConfigProfile, error)
 
 type NewMDMUnsupportedConfigProfileFunc func(ctx context.Context, teamID uint, filename string) error
 
@@ -758,7 +758,7 @@ type LinuxHostDiskEncryptionStatusFunc func(ctx context.Context, host fleet.Host
 
 type GetMDMLinuxProfilesSummaryFunc func(ctx context.Context, teamId *uint) (fleet.MDMProfilesSummary, error)
 
-type NewMDMAndroidConfigProfileFunc func(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAndroidConfigProfile, error)
+type NewMDMAndroidConfigProfileFunc func(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAndroidConfigProfile, error)
 
 type DeleteMDMAndroidConfigProfileFunc func(ctx context.Context, profileUUID string) error
 
@@ -4233,18 +4233,18 @@ func (s *Service) GetHostDEPAssignmentDetails(ctx context.Context, hostID uint)
 	return s.GetHostDEPAssignmentDetailsFunc(ctx, hostID)
 }
 
-func (s *Service) NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleConfigProfile, error) {
+func (s *Service) NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleConfigProfile, error) {
 	s.mu.Lock()
 	s.NewMDMAppleConfigProfileFuncInvoked = true
 	s.mu.Unlock()
-	return s.NewMDMAppleConfigProfileFunc(ctx, teamID, data, labels, labelsMembershipMode)
+	return s.NewMDMAppleConfigProfileFunc(ctx, teamID, data, labelsInclude, labelsMembershipMode, labelsExcludeAny)
 }
 
-func (s *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labels []string, name string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleDeclaration, error) {
+func (s *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labelsInclude []string, name string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleDeclaration, error) {
 	s.mu.Lock()
 	s.NewMDMAppleDeclarationFuncInvoked = true
 	s.mu.Unlock()
-	return s.NewMDMAppleDeclarationFunc(ctx, teamID, data, labels, name, labelsMembershipMode)
+	return s.NewMDMAppleDeclarationFunc(ctx, teamID, data, labelsInclude, name, labelsMembershipMode, labelsExcludeAny)
 }
 
 func (s *Service) GetMDMAppleConfigProfileByDeprecatedID(ctx context.Context, profileID uint) (*fleet.MDMAppleConfigProfile, error) {
@@ -4828,11 +4828,11 @@ func (s *Service) GetMDMWindowsProfilesSummary(ctx context.Context, teamID *uint
 	return s.GetMDMWindowsProfilesSummaryFunc(ctx, teamID)
 }
 
-func (s *Service) NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMWindowsConfigProfile, error) {
+func (s *Service) NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMWindowsConfigProfile, error) {
 	s.mu.Lock()
 	s.NewMDMWindowsConfigProfileFuncInvoked = true
 	s.mu.Unlock()
-	return s.NewMDMWindowsConfigProfileFunc(ctx, teamID, profileName, data, labels, labelsMembershipMode)
+	return s.NewMDMWindowsConfigProfileFunc(ctx, teamID, profileName, data, labelsInclude, labelsMembershipMode, labelsExcludeAny)
 }
 
 func (s *Service) NewMDMUnsupportedConfigProfile(ctx context.Context, teamID uint, filename string) error {
@@ -4877,11 +4877,11 @@ func (s *Service) GetMDMLinuxProfilesSummary(ctx context.Context, teamId *uint)
 	return s.GetMDMLinuxProfilesSummaryFunc(ctx, teamId)
 }
 
-func (s *Service) NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAndroidConfigProfile, error) {
+func (s *Service) NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAndroidConfigProfile, error) {
 	s.mu.Lock()
 	s.NewMDMAndroidConfigProfileFuncInvoked = true
 	s.mu.Unlock()
-	return s.NewMDMAndroidConfigProfileFunc(ctx, teamID, profileName, data, labels, labelsMembershipMode)
+	return s.NewMDMAndroidConfigProfileFunc(ctx, teamID, profileName, data, labelsInclude, labelsMembershipMode, labelsExcludeAny)
 }
 
 func (s *Service) DeleteMDMAndroidConfigProfile(ctx context.Context, profileUUID string) error {
diff --git a/server/service/appconfig.go b/server/service/appconfig.go
index 71de614232..f71be255f6 100644
--- a/server/service/appconfig.go
+++ b/server/service/appconfig.go
@@ -1680,30 +1680,7 @@ func (svc *Service) validateMDM(
 				`Couldn't update setup_experience because MDM features aren't turned on in Fleet. Use fleetctl generate mdm-apple and then fleet serve with mdm configuration to turn on MDM features.`)
 		}
 	}
-	checkCustomSettings := func(prefix string, customSettings []fleet.MDMProfileSpec) {
-		for i, prof := range customSettings {
-			count := 0
-			for _, b := range []bool{
-				len(prof.Labels) > 0,
-				len(prof.LabelsIncludeAll) > 0,
-				len(prof.LabelsIncludeAny) > 0,
-				len(prof.LabelsExcludeAny) > 0,
-			} {
-				if b {
-					count++
-				}
-			}
-			if count > 1 {
-				invalid.Append(fmt.Sprintf("%s_settings.configuration_profiles", prefix),
-					fmt.Sprintf(`Couldn't edit %s_settings.configuration_profiles. For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`, prefix))
-			}
-			if len(prof.Labels) > 0 {
-				customSettings[i].LabelsIncludeAll = customSettings[i].Labels
-				customSettings[i].Labels = nil
-			}
-		}
-	}
-	checkCustomSettings("macos", mdm.MacOSSettings.CustomSettings)
+	fleet.ValidateMDMProfileSpecs(invalid, "macos", mdm.MacOSSettings.CustomSettings)
 
 	if !mdm.WindowsEnabledAndConfigured {
 		if mdm.WindowsSettings.CustomSettings.Set &&
@@ -1713,7 +1690,7 @@ func (svc *Service) validateMDM(
 				`Couldn’t edit windows_settings.configuration_profiles. Windows MDM isn’t turned on. This can be enabled by setting "controls.windows_enabled_and_configured: true" in the default configuration. Visit https://fleetdm.com/guides/windows-mdm-setup and https://fleetdm.com/docs/configuration/yaml-files#controls to learn more about enabling MDM.`)
 		}
 	}
-	checkCustomSettings("windows", mdm.WindowsSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "windows", mdm.WindowsSettings.CustomSettings.Value)
 
 	// Check oldMdm as we bypass the patching of this value, as it's enabled and disabled elsewhere.
 	if !oldMdm.AndroidEnabledAndConfigured {
@@ -1724,7 +1701,7 @@ func (svc *Service) validateMDM(
 				`Couldn’t edit android_settings.configuration_profiles. Android MDM isn’t turned on. This can be enabled by setting "controls.android_enabled_and_configured: true" in the default configuration. Visit https://fleetdm.com/guides/android-mdm-setup and https://fleetdm.com/docs/configuration/yaml-files#controls to learn more about enabling MDM.`)
 		}
 	}
-	checkCustomSettings("android", mdm.AndroidSettings.CustomSettings.Value)
+	fleet.ValidateMDMProfileSpecs(invalid, "android", mdm.AndroidSettings.CustomSettings.Value)
 
 	// MacOSUpdates
 	updatingMacOSVersion := mdm.MacOSUpdates.MinimumVersion.Value != "" &&
diff --git a/server/service/apple_mdm.go b/server/service/apple_mdm.go
index df59183f1a..c87180cf64 100644
--- a/server/service/apple_mdm.go
+++ b/server/service/apple_mdm.go
@@ -353,7 +353,7 @@ func newMDMAppleConfigProfileEndpoint(ctx context.Context, request interface{},
 		return &newMDMConfigProfileResponse{Err: err}, nil
 	}
 	// providing an empty set of labels since this endpoint is only maintained for backwards compat
-	cp, err := svc.NewMDMAppleConfigProfile(ctx, req.TeamID, data, nil, fleet.LabelsIncludeAll)
+	cp, err := svc.NewMDMAppleConfigProfile(ctx, req.TeamID, data, nil, fleet.LabelsIncludeAll, nil)
 	if err != nil {
 		return &newMDMAppleConfigProfileResponse{Err: err}, nil
 	}
@@ -362,7 +362,7 @@ func newMDMAppleConfigProfileEndpoint(ctx context.Context, request interface{},
 	}, nil
 }
 
-func (svc *Service) NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleConfigProfile, error) {
+func (svc *Service) NewMDMAppleConfigProfile(ctx context.Context, teamID uint, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleConfigProfile, error) {
 	if err := svc.authz.Authorize(ctx, &fleet.MDMConfigProfileAuthz{TeamID: &teamID}, fleet.ActionWrite); err != nil {
 		return nil, ctxerr.Wrap(ctx, err)
 	}
@@ -437,20 +437,20 @@ func (svc *Service) NewMDMAppleConfigProfile(ctx context.Context, teamID uint, d
 	cp.Mobileconfig = data
 	cp.SecretsUpdatedAt = secretsUpdatedAt
 
-	labelMap, err := svc.validateProfileLabels(ctx, &teamID, labels)
+	if overlap := fleet.ProfileLabelOverlap(labelsInclude, labelsExcludeAny); overlap != "" {
+		return nil, ctxerr.Wrap(ctx, fleet.NewInvalidArgumentError("labels", fmt.Sprintf("label %q cannot appear in both include and exclude lists", overlap)))
+	}
+	includeLabels, excludeLabels, err := svc.validateProfileLabelSets(ctx, &teamID, labelsInclude, labelsExcludeAny)
 	if err != nil {
 		return nil, ctxerr.Wrap(ctx, err, "validating labels")
 	}
 	switch labelsMembershipMode {
 	case fleet.LabelsIncludeAll:
-		cp.LabelsIncludeAll = labelMap
+		cp.LabelsIncludeAll = includeLabels
 	case fleet.LabelsIncludeAny:
-		cp.LabelsIncludeAny = labelMap
-	case fleet.LabelsExcludeAny:
-		cp.LabelsExcludeAny = labelMap
-	default:
-		// TODO what happens if mode is not set?s
+		cp.LabelsIncludeAny = includeLabels
 	}
+	cp.LabelsExcludeAny = excludeLabels
 
 	// Convert profile variable names to FleetVarName type
 	varNames := make([]fleet.FleetVarName, 0, len(profileVars))
@@ -857,7 +857,7 @@ func additionalNDESValidation(contents string, ndesVars *NDESVarsFound) error {
 	return nil
 }
 
-func (svc *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labels []string, name string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAppleDeclaration, error) {
+func (svc *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, data []byte, labelsInclude []string, name string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAppleDeclaration, error) {
 	if err := svc.authz.Authorize(ctx, &fleet.MDMConfigProfileAuthz{TeamID: &teamID}, fleet.ActionWrite); err != nil {
 		return nil, ctxerr.Wrap(ctx, err)
 	}
@@ -890,7 +890,10 @@ func (svc *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, dat
 		teamName = tm.Name
 	}
 
-	validatedLabels, err := svc.validateDeclarationLabels(ctx, labels, teamID)
+	if overlap := fleet.ProfileLabelOverlap(labelsInclude, labelsExcludeAny); overlap != "" {
+		return nil, ctxerr.Wrap(ctx, fleet.NewInvalidArgumentError("labels", fmt.Sprintf("label %q cannot appear in both include and exclude lists", overlap)))
+	}
+	validatedIncludeLabels, excludeLabels, err := svc.validateDeclarationLabelSets(ctx, teamID, labelsInclude, labelsExcludeAny)
 	if err != nil {
 		return nil, err
 	}
@@ -933,13 +936,12 @@ func (svc *Service) NewMDMAppleDeclaration(ctx context.Context, teamID uint, dat
 
 	switch labelsMembershipMode {
 	case fleet.LabelsIncludeAny:
-		d.LabelsIncludeAny = validatedLabels
-	case fleet.LabelsExcludeAny:
-		d.LabelsExcludeAny = validatedLabels
+		d.LabelsIncludeAny = validatedIncludeLabels
 	default:
 		// default to include all
-		d.LabelsIncludeAll = validatedLabels
+		d.LabelsIncludeAll = validatedIncludeLabels
 	}
+	d.LabelsExcludeAny = excludeLabels
 
 	if err := svc.handleDeclarationSoftwareUpdate(ctx, rawDecl, teamID); err != nil {
 		return nil, ctxerr.Wrap(ctx, err, "handling declaration software update")
@@ -1246,19 +1248,6 @@ func (svc *Service) batchValidateDeclarationLabels(ctx context.Context, labelNam
 	return profLabels, nil
 }
 
-func (svc *Service) validateDeclarationLabels(ctx context.Context, labelNames []string, teamID uint) ([]fleet.ConfigurationProfileLabel, error) {
-	labelMap, err := svc.batchValidateDeclarationLabels(ctx, labelNames, teamID)
-	if err != nil {
-		return nil, ctxerr.Wrap(ctx, err, "validating declaration labels")
-	}
-
-	var declLabels []fleet.ConfigurationProfileLabel
-	for _, label := range labelMap {
-		declLabels = append(declLabels, label)
-	}
-	return declLabels, nil
-}
-
 type listMDMAppleConfigProfilesRequest struct {
 	TeamID uint `query:"team_id,optional" renameto:"fleet_id"`
 }
diff --git a/server/service/apple_mdm_test.go b/server/service/apple_mdm_test.go
index 8ceaf039bb..50dbfb68c2 100644
--- a/server/service/apple_mdm_test.go
+++ b/server/service/apple_mdm_test.go
@@ -741,11 +741,11 @@ func TestMDMAppleConfigProfileAuthz(t *testing.T) {
 
 		t.Run(tt.name, func(t *testing.T) {
 			// test authz create new profile (no team)
-			_, err := svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll)
+			_, err := svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll, nil)
 			checkShouldFail(err, tt.shouldFailGlobal)
 
 			// test authz create new profile (team 1)
-			_, err = svc.NewMDMAppleConfigProfile(ctx, 1, mcBytes, nil, fleet.LabelsIncludeAll)
+			_, err = svc.NewMDMAppleConfigProfile(ctx, 1, mcBytes, nil, fleet.LabelsIncludeAll, nil)
 			checkShouldFail(err, tt.shouldFailTeam)
 
 			// test authz list profiles (no team)
@@ -808,7 +808,7 @@ func TestNewMDMAppleConfigProfile(t *testing.T) {
 		return &fleet.GroupedCertificateAuthorities{}, nil
 	}
 
-	cp, err := svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll)
+	cp, err := svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll, nil)
 	require.NoError(t, err)
 	require.Equal(t, "Foo", cp.Name)
 	assert.Equal(t, identifier, cp.Identifier)
@@ -816,12 +816,12 @@ func TestNewMDMAppleConfigProfile(t *testing.T) {
 
 	// Unsupported Fleet variable
 	mcBytes = mcBytesForTest("Foo", identifier, "UUID${FLEET_VAR_BOZO}")
-	_, err = svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll)
+	_, err = svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll, nil)
 	assert.ErrorContains(t, err, "Fleet variable")
 
 	// Test profile with FLEET_SECRET in PayloadDisplayName
 	mcBytes = mcBytesForTest("Profile $FLEET_SECRET_PASSWORD", "test.identifier", "UUID")
-	_, err = svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll)
+	_, err = svc.NewMDMAppleConfigProfile(ctx, 0, mcBytes, nil, fleet.LabelsIncludeAll, nil)
 	assert.ErrorContains(t, err, "PayloadDisplayName cannot contain FLEET_SECRET variables")
 }
 
@@ -870,7 +870,7 @@ func TestNewMDMAppleDeclarationFreeLicenseTeam(t *testing.T) {
 
 	b := declBytesForTest("D1", "d1content")
 
-	_, err := svc.NewMDMAppleDeclaration(ctx, 1, b, nil, "name", fleet.LabelsIncludeAll)
+	_, err := svc.NewMDMAppleDeclaration(ctx, 1, b, nil, "name", fleet.LabelsIncludeAll, nil)
 	assert.ErrorIs(t, err, fleet.ErrMissingLicense)
 }
 
@@ -880,12 +880,12 @@ func TestNewMDMAppleDeclaration(t *testing.T) {
 
 	// Unsupported Fleet variable
 	b := declBytesForTest("D1", "d1content $FLEET_VAR_BOZO")
-	_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll)
+	_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll, nil)
 	assert.ErrorContains(t, err, "Fleet variable")
 
 	// decl type missing actual type
 	b = declarationForTestWithType("D1", "com.apple.configuration")
-	_, err = svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll)
+	_, err = svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll, nil)
 	assert.ErrorContains(t, err, "Only configuration declarations (com.apple.configuration.) are supported")
 
 	ds.NewMDMAppleDeclarationFunc = func(ctx context.Context, d *fleet.MDMAppleDeclaration, usesFleetVars []fleet.FleetVarName) (*fleet.MDMAppleDeclaration, error) {
@@ -898,7 +898,7 @@ func TestNewMDMAppleDeclaration(t *testing.T) {
 
 	// Good declaration
 	b = declBytesForTest("D1", "d1content")
-	d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll)
+	d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "name", fleet.LabelsIncludeAll, nil)
 	require.NoError(t, err)
 	assert.NotNil(t, d)
 }
@@ -962,7 +962,7 @@ func TestNewMDMAppleDeclarationSkipValidation(t *testing.T) {
 			"Type": "com.apple.configuration.management.status-subscriptions",
 			"Identifier": "test-status-sub"
 		}`)
-		_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-status-sub", fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-status-sub", fleet.LabelsIncludeAll, nil)
 		require.Error(t, err)
 		assert.ErrorContains(t, err, "status subscription type")
 	})
@@ -987,7 +987,7 @@ func TestNewMDMAppleDeclarationSkipValidation(t *testing.T) {
 			"Type": "com.apple.configuration.management.status-subscriptions",
 			"Identifier": "test-status-sub"
 		}`)
-		d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-status-sub", fleet.LabelsIncludeAll)
+		d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-status-sub", fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, d)
 	})
@@ -1005,7 +1005,7 @@ func TestNewMDMAppleDeclarationSkipValidation(t *testing.T) {
 			"Type": "com.example.invalid",
 			"Identifier": "test-invalid"
 		}`)
-		_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-invalid", fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-invalid", fleet.LabelsIncludeAll, nil)
 		require.Error(t, err)
 		assert.ErrorContains(t, err, "Only configuration declarations")
 	})
@@ -1030,7 +1030,7 @@ func TestNewMDMAppleDeclarationSkipValidation(t *testing.T) {
 			"Type": "com.example.invalid",
 			"Identifier": "test-invalid"
 		}`)
-		d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-invalid", fleet.LabelsIncludeAll)
+		d, err := svc.NewMDMAppleDeclaration(ctx, 0, b, nil, "test-invalid", fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, d)
 	})
@@ -1108,7 +1108,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 	t.Run("non software-update declaration skips OS update checks", func(t *testing.T) {
 		svc, ctx, ds := setup(t, true)
 
-		d, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(otherDecl), nil, "test-passcode", fleet.LabelsIncludeAll)
+		d, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(otherDecl), nil, "test-passcode", fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, d)
 		assert.False(t, ds.TeamMDMConfigFuncInvoked)
@@ -1117,7 +1117,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 	t.Run("software-update declaration requires premium license", func(t *testing.T) {
 		svc, ctx, ds := setup(t, false)
 
-		_, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll, nil)
 		require.ErrorIs(t, err, fleet.ErrMissingLicense)
 		// The gate fails before the declaration is inserted.
 		assert.False(t, ds.NewMDMAppleDeclarationFuncInvoked)
@@ -1128,7 +1128,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 		svc, ctx, ds := setup(t, true)
 		ds.AppConfigFunc = appConfigWith(nil)
 
-		d, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll)
+		d, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, d)
 		assert.False(t, ds.TeamMDMConfigFuncInvoked)
@@ -1142,7 +1142,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 			return &fleet.TeamMDM{}, nil
 		}
 
-		d, err := svc.NewMDMAppleDeclaration(ctx, 5, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll)
+		d, err := svc.NewMDMAppleDeclaration(ctx, 5, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, d)
 		assert.True(t, ds.TeamMDMConfigFuncInvoked)
@@ -1160,7 +1160,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 				svc, ctx, ds := setup(t, true)
 				ds.AppConfigFunc = appConfigWith(apply)
 
-				_, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll)
+				_, err := svc.NewMDMAppleDeclaration(ctx, 0, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll, nil)
 				require.Error(t, err)
 				require.ErrorContains(t, err, "OS updates are already configured")
 				// The gate fails before the declaration is inserted.
@@ -1184,7 +1184,7 @@ func TestNewMDMAppleDeclarationSoftwareUpdate(t *testing.T) {
 					return tc, nil
 				}
 
-				_, err := svc.NewMDMAppleDeclaration(ctx, 5, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll)
+				_, err := svc.NewMDMAppleDeclaration(ctx, 5, []byte(osUpdateDecl), nil, "test-os-update", fleet.LabelsIncludeAll, nil)
 				require.Error(t, err)
 				require.ErrorContains(t, err, fleet.OSUpdatesAlreadyConfiguredErrorMessage)
 				assert.False(t, ds.NewMDMAppleDeclarationFuncInvoked)
diff --git a/server/service/integration_mdm_profiles_test.go b/server/service/integration_mdm_profiles_test.go
index 29bf1788a0..d1013224c8 100644
--- a/server/service/integration_mdm_profiles_test.go
+++ b/server/service/integration_mdm_profiles_test.go
@@ -2187,42 +2187,30 @@ func (s *integrationMDMTestSuite) TestAppConfigMDMCustomSettings() {
 	assert.Empty(t, acResp.MDM.MacOSSettings.CustomSettings)
 	assert.Equal(t, optjson.Slice[fleet.MDMProfileSpec]{Set: true, Value: []fleet.MDMProfileSpec{}}, acResp.MDM.WindowsSettings.CustomSettings)
 
-	// mix of labels fields returns an error
+	// combining two include modes returns an error; combining include + exclude is valid
 	res := s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
 		"mdm": {
 		  "macos_settings": {
 				"custom_settings": [
-					{"path": "foo", "labels": ["a"], "labels_exclude_any": ["b"]}
+					{"path": "foo", "labels_include_all": ["a"], "labels_include_any": ["b"]}
 				]
 			}
 		}
   }`), http.StatusUnprocessableEntity)
 	msg := extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
 
 	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
 		"mdm": {
 		  "windows_settings": {
 				"custom_settings": [
-					{"path": "foo", "labels_include_all": ["a"], "labels_exclude_any": ["b"]}
+					{"path": "foo", "labels": ["a"], "labels_include_all": ["b"]}
 				]
 			}
 		}
   }`), http.StatusUnprocessableEntity)
 	msg = extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
-
-	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
-		"mdm": {
-		  "windows_settings": {
-				"custom_settings": [
-					{"path": "foo", "labels_include_any": ["a"], "labels_exclude_any": ["b"]}
-				]
-			}
-		}
-  }`), http.StatusUnprocessableEntity)
-	msg = extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
 
 	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
 		"mdm": {
@@ -2234,7 +2222,44 @@ func (s *integrationMDMTestSuite) TestAppConfigMDMCustomSettings() {
 		}
   }`), http.StatusUnprocessableEntity)
 	msg = extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
+
+	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
+		"mdm": {
+		  "windows_settings": {
+				"custom_settings": [
+					{"path": "foo", "labels_include_all": ["a"], "labels_include_any": ["b"]}
+				]
+			}
+		}
+  }`), http.StatusUnprocessableEntity)
+	msg = extractServerErrorText(res.Body)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
+
+	// same label in both include and exclude lists returns an error
+	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
+		"mdm": {
+		  "macos_settings": {
+				"custom_settings": [
+					{"path": "foo", "labels_include_all": ["a"], "labels_exclude_any": ["a"]}
+				]
+			}
+		}
+  }`), http.StatusUnprocessableEntity)
+	msg = extractServerErrorText(res.Body)
+	require.Contains(t, msg, `Label "a" cannot appear in both include and exclude lists.`)
+
+	res = s.Do("PATCH", "/api/latest/fleet/config", json.RawMessage(`{
+		"mdm": {
+		  "windows_settings": {
+				"custom_settings": [
+					{"path": "foo", "labels_include_any": ["b"], "labels_exclude_any": ["b"]}
+				]
+			}
+		}
+  }`), http.StatusUnprocessableEntity)
+	msg = extractServerErrorText(res.Body)
+	require.Contains(t, msg, `Label "b" cannot appear in both include and exclude lists.`)
 }
 
 func (s *integrationMDMTestSuite) TestApplyTeamsMDMAppleProfiles() {
@@ -2353,7 +2378,7 @@ func (s *integrationMDMTestSuite) TestApplyTeamsMDMAppleProfiles() {
 	}}}
 	res = s.Do("POST", "/api/latest/fleet/spec/teams", teamSpecs, http.StatusUnprocessableEntity)
 	errMsg = extractServerErrorText(res.Body)
-	assert.Contains(t, errMsg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	assert.Contains(t, errMsg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
 }
 
 func (s *integrationMDMTestSuite) TestBatchSetMDMAppleProfiles() {
@@ -3461,15 +3486,21 @@ func (s *integrationMDMTestSuite) TestMDMConfigProfileCRUD() {
 	assertWindowsProfile("win-profile-with-labels.xml", "./Test", 0, []string{"does-not-exist", "bar"}, http.StatusBadRequest, `Couldn't update. Label "does-not-exist" doesn't exist. Please remove the label from the configuration profile.`)
 	assertAndroidProfile("android-profile-with-labels.json", 0, []string{"does-not-exist", "bar"}, http.StatusBadRequest, `Couldn't update. Label "does-not-exist" doesn't exist. Please remove the label from the configuration profile.`)
 
-	// profiles with invalid mix of labels
-	assertAppleProfile("apple-invalid-profile-with-labels.mobileconfig", "apple-invalid-profile-with-labels", "ident-with-labels", 0, []string{"foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertAppleProfile("apple-invalid-profile-with-labels.mobileconfig", "apple-invalid-profile-with-labels", "ident-with-labels", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertAppleDeclaration("apple-invalid-decl-with-labels.json", "ident-decl-with-labels", 0, []string{"foo", "-bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertAppleDeclaration("apple-invalid-decl-with-labels.json", "ident-decl-with-labels", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertWindowsProfile("win-invalid-profile-with-labels.xml", "./Test", 0, []string{"-foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertWindowsProfile("win-invalid-profile-with-labels.xml", "./Test", 0, []string{"-foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertAndroidProfile("android-invalid-profile-with-labels.json", 0, []string{"-foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
-	assertAndroidProfile("android-invalid-profile-with-labels.json", 0, []string{"-foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	// profiles with invalid mix of labels (two include modes; exclude may combine with either include mode)
+	assertAppleProfile("apple-invalid-profile-with-labels.mobileconfig", "apple-invalid-profile-with-labels", "ident-with-labels", 0, []string{"foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertAppleProfile("apple-invalid-profile-with-labels.mobileconfig", "apple-invalid-profile-with-labels", "ident-with-labels", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertAppleDeclaration("apple-invalid-decl-with-labels.json", "ident-decl-with-labels", 0, []string{"!foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertAppleDeclaration("apple-invalid-decl-with-labels.json", "ident-decl-with-labels", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertWindowsProfile("win-invalid-profile-with-labels.xml", "./Test", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertWindowsProfile("win-invalid-profile-with-labels.xml", "./Test", 0, []string{"foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertAndroidProfile("android-invalid-profile-with-labels.json", 0, []string{"foo", "~bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+	assertAndroidProfile("android-invalid-profile-with-labels.json", 0, []string{"foo", "!bar"}, http.StatusBadRequest, `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`)
+
+	// profiles with same label in both include and exclude lists
+	assertAppleProfile("apple-invalid-profile-with-labels.mobileconfig", "apple-invalid-profile-with-labels", "ident-with-labels", 0, []string{"foo", "-foo"}, http.StatusBadRequest, `Label "foo" cannot appear in both include and exclude lists.`)
+	assertAppleDeclaration("apple-invalid-decl-with-labels.json", "ident-decl-with-labels", 0, []string{"~foo", "-foo"}, http.StatusBadRequest, `Label "foo" cannot appear in both include and exclude lists.`)
+	assertWindowsProfile("win-invalid-profile-with-labels.xml", "./Test", 0, []string{"bar", "-bar"}, http.StatusBadRequest, `Label "bar" cannot appear in both include and exclude lists.`)
+	assertAndroidProfile("android-invalid-profile-with-labels.json", 0, []string{"~bar", "-bar"}, http.StatusBadRequest, `Label "bar" cannot appear in both include and exclude lists.`)
 
 	// profiles with valid labels
 	uuidAppleWithLabel := assertAppleProfile("apple-profile-with-labels.mobileconfig", "apple-profile-with-labels", "ident-with-labels", 0, []string{"!foo"}, http.StatusOK, "")
@@ -4848,7 +4879,7 @@ func (s *integrationMDMTestSuite) TestApplyTeamsMDMWindowsProfiles() {
 		}
 	`), http.StatusUnprocessableEntity)
 	errMsg := extractServerErrorText(res.Body)
-	assert.Contains(t, errMsg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	assert.Contains(t, errMsg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
 }
 
 func (s *integrationMDMTestSuite) TestBatchSetMDMProfiles() {
@@ -5066,12 +5097,19 @@ func (s *integrationMDMTestSuite) TestBatchSetMDMProfiles() {
 	msg := extractServerErrorText(res.Body)
 	require.Contains(t, msg, `Couldn't update. Label "no-such-label" doesn't exist. Please remove the label from the configuration profile.`)
 
-	// mix of labels fields
+	// two include modes in the same profile is invalid (exclude may combine with either include mode)
 	res = s.Do("POST", "/api/v1/fleet/mdm/profiles/batch", batchSetMDMProfilesRequest{Profiles: []fleet.MDMProfileBatchPayload{
-		{Name: "N1", Contents: mobileconfigForTest("N1", "I1"), Labels: []string{lbl1.Name}, LabelsExcludeAny: []string{lbl2.Name}},
+		{Name: "N1", Contents: mobileconfigForTest("N1", "I1"), LabelsIncludeAll: []string{lbl1.Name}, LabelsIncludeAny: []string{lbl2.Name}},
 	}}, http.StatusUnprocessableEntity)
 	msg = extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
+
+	// same label in both include and exclude is invalid
+	res = s.Do("POST", "/api/v1/fleet/mdm/profiles/batch", batchSetMDMProfilesRequest{Profiles: []fleet.MDMProfileBatchPayload{
+		{Name: "N1", Contents: mobileconfigForTest("N1", "I1"), LabelsIncludeAll: []string{lbl1.Name}, LabelsExcludeAny: []string{lbl1.Name}},
+	}}, http.StatusUnprocessableEntity)
+	msg = extractServerErrorText(res.Body)
+	require.Contains(t, msg, fmt.Sprintf(`Label %q cannot appear in both include and exclude lists.`, lbl1.Name))
 
 	// successful batch-set
 	s.Do("POST", "/api/v1/fleet/mdm/profiles/batch", batchSetMDMProfilesRequest{Profiles: []fleet.MDMProfileBatchPayload{
@@ -5367,12 +5405,12 @@ func (s *integrationMDMTestSuite) TestBatchModifyMDMProfiles() {
 	msg := extractServerErrorText(res.Body)
 	require.Contains(t, msg, `Couldn't update. Label "no-such-label" doesn't exist. Please remove the label from the configuration profile.`)
 
-	// mix of labels fields
+	// two include modes in the same profile is invalid (exclude may combine with either include mode)
 	res = s.Do("POST", "/api/latest/fleet/configuration_profiles/batch", batchModifyMDMConfigProfilesRequest{ConfigurationProfiles: []fleet.BatchModifyMDMConfigProfilePayload{
-		{DisplayName: "N1", Profile: mobileconfigForTest("N1", "I1"), LabelsIncludeAll: []string{lbl1.Name}, LabelsExcludeAny: []string{lbl2.Name}},
+		{DisplayName: "N1", Profile: mobileconfigForTest("N1", "I1"), LabelsIncludeAll: []string{lbl1.Name}, LabelsIncludeAny: []string{lbl2.Name}},
 	}}, http.StatusUnprocessableEntity)
 	msg = extractServerErrorText(res.Body)
-	require.Contains(t, msg, `For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+	require.Contains(t, msg, `For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
 
 	// successful batch-set
 	s.Do("POST", "/api/latest/fleet/configuration_profiles/batch", batchModifyMDMConfigProfilesRequest{ConfigurationProfiles: []fleet.BatchModifyMDMConfigProfilePayload{
diff --git a/server/service/mdm.go b/server/service/mdm.go
index 311d26c46c..84a87bda97 100644
--- a/server/service/mdm.go
+++ b/server/service/mdm.go
@@ -1679,27 +1679,32 @@ func (newMDMConfigProfileRequest) DecodeRequest(ctx context.Context, r *http.Req
 	}
 
 	// add labels
-	var existsInclAll, existsInclAny, existsExclAny, existsDepr bool
+	var existsInclAll, existsInclAny, existsDepr bool
 	var deprecatedLabels []string
 	decoded.LabelsIncludeAll, existsInclAll = r.MultipartForm.Value[string(fleet.LabelsIncludeAll)]
 	decoded.LabelsIncludeAny, existsInclAny = r.MultipartForm.Value[string(fleet.LabelsIncludeAny)]
-	decoded.LabelsExcludeAny, existsExclAny = r.MultipartForm.Value[string(fleet.LabelsExcludeAny)]
+	decoded.LabelsExcludeAny = r.MultipartForm.Value[string(fleet.LabelsExcludeAny)]
 	deprecatedLabels, existsDepr = r.MultipartForm.Value["labels"]
 
-	// validate that only one of the labels type is provided
-	var count int
-	for _, b := range []bool{existsInclAll, existsInclAny, existsExclAny, existsDepr} {
+	// validate that at most one include mode is provided; labels_exclude_any may be combined with any include mode
+	var includeCount int
+	for _, b := range []bool{existsInclAll, existsInclAny, existsDepr} {
 		if b {
-			count++
+			includeCount++
 		}
 	}
-	if count > 1 {
-		return nil, &fleet.BadRequestError{Message: `Only one of "labels_exclude_any", "labels_include_all", "labels_include_any", or "labels" can be included.`}
+	if includeCount > 1 {
+		return nil, &fleet.BadRequestError{Message: `Only one of "labels_include_all", "labels_include_any", or "labels" can be included.`}
 	}
 	if existsDepr {
 		decoded.LabelsIncludeAll = deprecatedLabels
 	}
 
+	includeLabels := append(decoded.LabelsIncludeAll, decoded.LabelsIncludeAny...) //nolint:gocritic
+	if overlap := fleet.ProfileLabelOverlap(includeLabels, decoded.LabelsExcludeAny); overlap != "" {
+		return nil, &fleet.BadRequestError{Message: fmt.Sprintf(`Label %q cannot appear in both include and exclude lists.`, overlap)}
+	}
+
 	return &decoded, nil
 }
 
@@ -1729,15 +1734,13 @@ func newMDMConfigProfileEndpoint(ctx context.Context, request interface{}, svc f
 	isMobileConfig := strings.EqualFold(fileExt, ".mobileconfig")
 	isJSON := strings.EqualFold(fileExt, ".json")
 
+	// determine include mode; labels_exclude_any may be combined with any include mode
 	var labels []string
 	var labelsMode fleet.MDMLabelsMode
 	switch {
 	case len(req.LabelsIncludeAny) > 0:
 		labels = req.LabelsIncludeAny
 		labelsMode = fleet.LabelsIncludeAny
-	case len(req.LabelsExcludeAny) > 0:
-		labels = req.LabelsExcludeAny
-		labelsMode = fleet.LabelsExcludeAny
 	default:
 		// default include all
 		labels = req.LabelsIncludeAll
@@ -1765,7 +1768,7 @@ func newMDMConfigProfileEndpoint(ctx context.Context, request interface{}, svc f
 	if isMobileConfig || isAppleDeclarationJSON {
 		// Then it's an Apple configuration file
 		if isJSON {
-			decl, err := svc.NewMDMAppleDeclaration(ctx, req.TeamID, data, labels, profileName, labelsMode)
+			decl, err := svc.NewMDMAppleDeclaration(ctx, req.TeamID, data, labels, profileName, labelsMode, req.LabelsExcludeAny)
 			if err != nil {
 				errStr := err.Error()
 				if strings.Contains(errStr, "MDMAppleDeclaration.Name") && strings.Contains(errStr, "already exists") {
@@ -1782,7 +1785,7 @@ func newMDMConfigProfileEndpoint(ctx context.Context, request interface{}, svc f
 
 		}
 
-		cp, err := svc.NewMDMAppleConfigProfile(ctx, req.TeamID, data, labels, labelsMode)
+		cp, err := svc.NewMDMAppleConfigProfile(ctx, req.TeamID, data, labels, labelsMode, req.LabelsExcludeAny)
 		if err != nil {
 			return &newMDMConfigProfileResponse{Err: err}, nil
 		}
@@ -1792,7 +1795,7 @@ func newMDMConfigProfileEndpoint(ctx context.Context, request interface{}, svc f
 	}
 
 	if isAndroidJSON {
-		cp, err := svc.NewMDMAndroidConfigProfile(ctx, req.TeamID, profileName, data, labels, labelsMode)
+		cp, err := svc.NewMDMAndroidConfigProfile(ctx, req.TeamID, profileName, data, labels, labelsMode, req.LabelsExcludeAny)
 		if err != nil {
 			return &newMDMConfigProfileResponse{Err: err}, nil
 		}
@@ -1802,7 +1805,7 @@ func newMDMConfigProfileEndpoint(ctx context.Context, request interface{}, svc f
 	}
 
 	if isWindows := strings.EqualFold(fileExt, ".xml"); isWindows {
-		cp, err := svc.NewMDMWindowsConfigProfile(ctx, req.TeamID, profileName, data, labels, labelsMode)
+		cp, err := svc.NewMDMWindowsConfigProfile(ctx, req.TeamID, profileName, data, labels, labelsMode, req.LabelsExcludeAny)
 		if err != nil {
 			return &newMDMConfigProfileResponse{Err: err}, nil
 		}
@@ -1837,7 +1840,7 @@ func (svc *Service) NewMDMUnsupportedConfigProfile(ctx context.Context, teamID u
 	return &fleet.BadRequestError{Message: "Couldn't add profile. The file should be a .mobileconfig, XML, or JSON file."}
 }
 
-func (svc *Service) NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMAndroidConfigProfile, error) {
+func (svc *Service) NewMDMAndroidConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMAndroidConfigProfile, error) {
 	if err := svc.authz.Authorize(ctx, &fleet.MDMConfigProfileAuthz{TeamID: &teamID}, fleet.ActionWrite); err != nil {
 		return nil, ctxerr.Wrap(ctx, err)
 	}
@@ -1872,19 +1875,21 @@ func (svc *Service) NewMDMAndroidConfigProfile(ctx context.Context, teamID uint,
 		return nil, ctxerr.Wrap(ctx, err, "validate profile")
 	}
 
-	labelMap, err := svc.validateProfileLabels(ctx, &teamID, labels)
+	if overlap := fleet.ProfileLabelOverlap(labelsInclude, labelsExcludeAny); overlap != "" {
+		return nil, ctxerr.Wrap(ctx, fleet.NewInvalidArgumentError("labels", fmt.Sprintf("label %q cannot appear in both include and exclude lists", overlap)))
+	}
+	includeLabels, excludeLabels, err := svc.validateProfileLabelSets(ctx, &teamID, labelsInclude, labelsExcludeAny)
 	if err != nil {
 		return nil, ctxerr.Wrap(ctx, err, "validating labels")
 	}
 	switch labelsMembershipMode {
 	case fleet.LabelsIncludeAny:
-		cp.LabelsIncludeAny = labelMap
-	case fleet.LabelsExcludeAny:
-		cp.LabelsExcludeAny = labelMap
+		cp.LabelsIncludeAny = includeLabels
 	default:
 		// default include all
-		cp.LabelsIncludeAll = labelMap
+		cp.LabelsIncludeAll = includeLabels
 	}
+	cp.LabelsExcludeAny = excludeLabels
 
 	newCP, err := svc.ds.NewMDMAndroidConfigProfile(ctx, cp)
 	if err != nil {
@@ -1957,17 +1962,40 @@ func (svc *Service) batchValidateProfileLabels(ctx context.Context, teamID *uint
 	return profLabels, nil
 }
 
-func (svc *Service) validateProfileLabels(ctx context.Context, teamID *uint, labelNames []string) ([]fleet.ConfigurationProfileLabel, error) {
-	labelMap, err := svc.batchValidateProfileLabels(ctx, teamID, labelNames)
+// validateDeclarationLabelSets validates both include and exclude label sets in a single DB round-trip
+// and returns the resolved slices ready to assign to the declaration struct.
+func (svc *Service) validateDeclarationLabelSets(ctx context.Context, teamID uint, labelsInclude, labelsExcludeAny []string) (include, exclude []fleet.ConfigurationProfileLabel, err error) {
+	allLabelMap, err := svc.batchValidateDeclarationLabels(ctx, slices.Concat(labelsInclude, labelsExcludeAny), teamID)
 	if err != nil {
-		return nil, ctxerr.Wrap(ctx, err, "validating profile labels")
+		return nil, nil, err
 	}
+	include = make([]fleet.ConfigurationProfileLabel, 0, len(labelsInclude))
+	for _, name := range labelsInclude {
+		include = append(include, allLabelMap[name])
+	}
+	exclude = make([]fleet.ConfigurationProfileLabel, 0, len(labelsExcludeAny))
+	for _, name := range labelsExcludeAny {
+		exclude = append(exclude, allLabelMap[name])
+	}
+	return include, exclude, nil
+}
 
-	var profLabels []fleet.ConfigurationProfileLabel
-	for _, label := range labelMap {
-		profLabels = append(profLabels, label)
+// validateProfileLabelSets validates both include and exclude label sets in a single DB round-trip
+// and returns the resolved slices ready to assign to the profile struct.
+func (svc *Service) validateProfileLabelSets(ctx context.Context, teamID *uint, labelsInclude, labelsExcludeAny []string) (include, exclude []fleet.ConfigurationProfileLabel, err error) {
+	allLabelMap, err := svc.batchValidateProfileLabels(ctx, teamID, slices.Concat(labelsInclude, labelsExcludeAny))
+	if err != nil {
+		return nil, nil, ctxerr.Wrap(ctx, err, "validating labels")
 	}
-	return profLabels, nil
+	include = make([]fleet.ConfigurationProfileLabel, 0, len(labelsInclude))
+	for _, name := range labelsInclude {
+		include = append(include, allLabelMap[name])
+	}
+	exclude = make([]fleet.ConfigurationProfileLabel, 0, len(labelsExcludeAny))
+	for _, name := range labelsExcludeAny {
+		exclude = append(exclude, allLabelMap[name])
+	}
+	return include, exclude, nil
 }
 
 type batchModifyMDMConfigProfilesRequest struct {
@@ -2806,20 +2834,24 @@ func getAndroidProfiles(ctx context.Context,
 
 func validateProfiles(profiles map[int]fleet.MDMProfileBatchPayload) error {
 	for _, profile := range profiles {
-		// validate that only one of labels, labels_include_all and labels_exclude_any is provided.
-		var count int
+		// validate that at most one include mode is provided; labels_exclude_any may be combined with any include mode
+		var includeCount int
 		for _, b := range []bool{
 			len(profile.LabelsIncludeAll) > 0,
 			len(profile.LabelsIncludeAny) > 0,
-			len(profile.LabelsExcludeAny) > 0,
 			len(profile.Labels) > 0,
 		} {
 			if b {
-				count++
+				includeCount++
 			}
 		}
-		if count > 1 {
-			return fleet.NewInvalidArgumentError("mdm", `Couldn't edit configuration_profiles. For each profile, only one of "labels_exclude_any", "labels_include_all", "labels_include_any" or "labels" can be included.`)
+		if includeCount > 1 {
+			return fleet.NewInvalidArgumentError("mdm", `Couldn't edit configuration_profiles. For each profile, only one of "labels_include_all", "labels_include_any" or "labels" can be included.`)
+		}
+
+		includeLabels := append(profile.LabelsIncludeAll, append(profile.Labels, profile.LabelsIncludeAny...)...) //nolint:gocritic
+		if overlap := fleet.ProfileLabelOverlap(includeLabels, profile.LabelsExcludeAny); overlap != "" {
+			return fleet.NewInvalidArgumentError("mdm", fmt.Sprintf(`Couldn't edit configuration_profiles. Label %q cannot appear in both include and exclude lists.`, overlap))
 		}
 
 		if len(profile.Contents) > 1024*1024 {
diff --git a/server/service/mdm_test.go b/server/service/mdm_test.go
index bc53b97176..2d9e4c268c 100644
--- a/server/service/mdm_test.go
+++ b/server/service/mdm_test.go
@@ -1386,11 +1386,11 @@ func TestMDMWindowsConfigProfileAuthz(t *testing.T) {
 			checkShouldFail(t, err, tt.shouldFailTeamRead)
 
 			// test authz create new profile (no team)
-			_, err = svc.NewMDMWindowsConfigProfile(ctx, 0, "prof", []byte(winProfContent), nil, fleet.LabelsIncludeAll)
+			_, err = svc.NewMDMWindowsConfigProfile(ctx, 0, "prof", []byte(winProfContent), nil, fleet.LabelsIncludeAll, nil)
 			checkShouldFail(t, err, tt.shouldFailGlobalWrite)
 
 			// test authz create new profile (team 1)
-			_, err = svc.NewMDMWindowsConfigProfile(ctx, 1, "prof", []byte(winProfContent), nil, fleet.LabelsIncludeAll)
+			_, err = svc.NewMDMWindowsConfigProfile(ctx, 1, "prof", []byte(winProfContent), nil, fleet.LabelsIncludeAll, nil)
 			checkShouldFail(t, err, tt.shouldFailTeamWrite)
 
 			// test authz delete config profile (no team)
@@ -1486,7 +1486,7 @@ func TestUploadWindowsMDMConfigProfileValidations(t *testing.T) {
 				}, nil
 			}
 			ctx = test.UserContext(ctx, test.UserAdmin)
-			_, err := svc.NewMDMWindowsConfigProfile(ctx, c.tmID, "foo", []byte(c.profile), nil, fleet.LabelsIncludeAll)
+			_, err := svc.NewMDMWindowsConfigProfile(ctx, c.tmID, "foo", []byte(c.profile), nil, fleet.LabelsIncludeAll, nil)
 			if c.wantErr != "" {
 				require.Error(t, err)
 				require.ErrorContains(t, err, c.wantErr)
@@ -3113,7 +3113,7 @@ func TestNewMDMProfilePremiumOnlyAndroid(t *testing.T) {
 			}
 			ctx = license.NewContext(ctx, &fleet.LicenseInfo{Tier: tier})
 
-			_, err := svc.NewMDMAndroidConfigProfile(ctx, tt.teamID, tt.name, []byte(tt.profile), nil, fleet.LabelsIncludeAll)
+			_, err := svc.NewMDMAndroidConfigProfile(ctx, tt.teamID, tt.name, []byte(tt.profile), nil, fleet.LabelsIncludeAll, nil)
 			if tt.wantErr == "" {
 				require.NoError(t, err)
 				require.True(t, ds.NewMDMAndroidConfigProfileFuncInvoked)
diff --git a/server/service/testing_client_test.go b/server/service/testing_client_test.go
index d9d52ee7c5..2c746c20ad 100644
--- a/server/service/testing_client_test.go
+++ b/server/service/testing_client_test.go
@@ -180,6 +180,16 @@ func (ts *withServer) commonTearDownTest(t *testing.T) {
 		return nil
 	})
 
+	// Null label_id references in MDM profile/declaration label tables before deleting labels,
+	// since the application layer now blocks label deletion while referenced by a profile.
+	mysqltest.ExecAdhocSQL(t, ts.ds, func(q sqlx.ExtContext) error {
+		if _, err := q.ExecContext(ctx, `UPDATE mdm_configuration_profile_labels SET label_id = NULL`); err != nil {
+			return err
+		}
+		_, err := q.ExecContext(ctx, `UPDATE mdm_declaration_labels SET label_id = NULL`)
+		return err
+	})
+
 	lbls, err := ts.ds.ListLabels(ctx, filter, fleet.ListOptions{}, false)
 	require.NoError(t, err)
 	for _, lbl := range lbls {
diff --git a/server/service/windows_mdm_profiles.go b/server/service/windows_mdm_profiles.go
index e2b362a5c3..3b9873a2d9 100644
--- a/server/service/windows_mdm_profiles.go
+++ b/server/service/windows_mdm_profiles.go
@@ -20,7 +20,7 @@ import (
 	"github.com/fleetdm/fleet/v4/server/variables"
 )
 
-func (svc *Service) NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labels []string, labelsMembershipMode fleet.MDMLabelsMode) (*fleet.MDMWindowsConfigProfile, error) {
+func (svc *Service) NewMDMWindowsConfigProfile(ctx context.Context, teamID uint, profileName string, data []byte, labelsInclude []string, labelsMembershipMode fleet.MDMLabelsMode, labelsExcludeAny []string) (*fleet.MDMWindowsConfigProfile, error) {
 	if err := svc.authz.Authorize(ctx, &fleet.MDMConfigProfileAuthz{TeamID: &teamID}, fleet.ActionWrite); err != nil {
 		return nil, ctxerr.Wrap(ctx, err)
 	}
@@ -66,19 +66,21 @@ func (svc *Service) NewMDMWindowsConfigProfile(ctx context.Context, teamID uint,
 		return nil, ctxerr.Wrap(ctx, err, "validate profile")
 	}
 
-	labelMap, err := svc.validateProfileLabels(ctx, &teamID, labels)
+	if overlap := fleet.ProfileLabelOverlap(labelsInclude, labelsExcludeAny); overlap != "" {
+		return nil, ctxerr.Wrap(ctx, fleet.NewInvalidArgumentError("labels", fmt.Sprintf("label %q cannot appear in both include and exclude lists", overlap)))
+	}
+	includeLabels, excludeLabels, err := svc.validateProfileLabelSets(ctx, &teamID, labelsInclude, labelsExcludeAny)
 	if err != nil {
 		return nil, ctxerr.Wrap(ctx, err, "validating labels")
 	}
 	switch labelsMembershipMode {
 	case fleet.LabelsIncludeAny:
-		cp.LabelsIncludeAny = labelMap
-	case fleet.LabelsExcludeAny:
-		cp.LabelsExcludeAny = labelMap
+		cp.LabelsIncludeAny = includeLabels
 	default:
 		// default include all
-		cp.LabelsIncludeAll = labelMap
+		cp.LabelsIncludeAll = includeLabels
 	}
+	cp.LabelsExcludeAny = excludeLabels
 
 	if err := svc.ds.ValidateEmbeddedSecrets(ctx, []string{string(cp.SyncML)}); err != nil {
 		return nil, ctxerr.Wrap(ctx, fleet.NewInvalidArgumentError("profile", err.Error()))
diff --git a/server/service/windows_mdm_profiles_test.go b/server/service/windows_mdm_profiles_test.go
index 2ad245e6b9..e96b76b16c 100644
--- a/server/service/windows_mdm_profiles_test.go
+++ b/server/service/windows_mdm_profiles_test.go
@@ -378,7 +378,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 		svc, ctx, ds := setup(t, true)
 		ds.AppConfigFunc = appConfigWith(nil)
 
-		p, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "other", otherSyncML, nil, fleet.LabelsIncludeAll)
+		p, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "other", otherSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, p)
 		assert.False(t, ds.TeamMDMConfigFuncInvoked)
@@ -388,7 +388,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 		svc, ctx, ds := setup(t, false)
 		ds.AppConfigFunc = appConfigWith(nil)
 
-		_, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "other", osUpdateSyncML, nil, fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "other", osUpdateSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.ErrorIs(t, err, fleet.ErrMissingLicense)
 		// The gate fails before the profile is inserted.
 		assert.False(t, ds.NewMDMWindowsConfigProfileFuncInvoked)
@@ -399,7 +399,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 		svc, ctx, ds := setup(t, true)
 		ds.AppConfigFunc = appConfigWith(nil)
 
-		p, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll)
+		p, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, p)
 		assert.False(t, ds.TeamMDMConfigFuncInvoked)
@@ -414,7 +414,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 			return &fleet.TeamMDM{}, nil
 		}
 
-		p, err := svc.NewMDMWindowsConfigProfile(ctx, 5, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll)
+		p, err := svc.NewMDMWindowsConfigProfile(ctx, 5, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.NoError(t, err)
 		assert.NotNil(t, p)
 		assert.True(t, ds.TeamMDMConfigFuncInvoked)
@@ -427,7 +427,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 			ac.MDM.WindowsUpdates = configuredSettings()
 		})
 
-		_, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMWindowsConfigProfile(ctx, 0, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.Error(t, err)
 		require.ErrorContains(t, err, fleet.OSUpdatesAlreadyConfiguredErrorMessage)
 		// The gate fails before the profile is inserted.
@@ -441,7 +441,7 @@ func TestNewMDMWindowsConfigProfileSoftwareUpdate(t *testing.T) {
 			return &fleet.TeamMDM{WindowsUpdates: configuredSettings()}, nil
 		}
 
-		_, err := svc.NewMDMWindowsConfigProfile(ctx, 5, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll)
+		_, err := svc.NewMDMWindowsConfigProfile(ctx, 5, "os-update", osUpdateSyncML, nil, fleet.LabelsIncludeAll, nil)
 		require.Error(t, err)
 		require.ErrorContains(t, err, fleet.OSUpdatesAlreadyConfiguredErrorMessage)
 		assert.False(t, ds.NewMDMWindowsConfigProfileFuncInvoked)