Normally when you create a software based report and try to filter on a Label you are filtering on the labels that are assigned to the software item and not the labels that are associated with the Computer.
This report is very similar to the "Software on Computer" report that is included with your KACE SMA appliance except that it adds in a filter based on the membership of computers in a label called "complabel". You can replace that value with whatever is relevant for your environment.
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