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You might encounter the error message “Restore not able to create new label due to Google server error” in the Backup Archives page/Dashboard (Backup Health section)/Backup Health Status Report.
This is a permanent error.
Error Message: Email label has special characters in the label name
The email cannot be restored because the email’s label could not be created in the user’s Gmail account. The email’s label has special characters in its name, and Google API returns an error when creating a label with special characters. This is a Google API limitation and is a permanent error.
Solution: Try to restore the selected emails to a custom label.