This article explains the LABEL ARCHIVE problem that prevents users from checking in a label as a draft.
User has checked out an approved label. When attempting to check in the label as draft, the selector that determines whether the label is checked in as draft or final is greyed out.
There is a configuration settings option that needs to be enabled in LABEL ARCHIVE Server Administrator for a user to check in a label as draft.
KBA-01687-K6G2Y1: Configure LABEL ARCHIVE to Allow Labels to Check In as Draft