Hi@v-jagoud,
Combine the screenshot you provided, I think that you have reached something limit.
I have a test which is confirmed on my side that once you reach the limitation in height with a Label, something wrong happened.
Absolutely you could set the AutoHeight property to make the Label automatically high, however, there is a limitation in height with the Label. If you exceed it, the AutoHeight property will not work.
Could you please tell me which Gallery you use, a vertical or a flexible?
As an alternative solution, I think a Flexible Gallery could achieve your needs.
I have a test on my side, please take a try as below.
I add a Button and set the OnSelect property to create a collection as below:
ClearCollect(tem,{test1:"agagwerhgshfds"},{test1:"agagwerhgshfdshfgdjfgdjds"},{test1:"agagweasgsfdhfdshfdjhfgkjghlklrhgshfdshfgdjfgdjdshhhhhhhhggffgtyuikkhbvcdstjnbftunyuhgg"})
Add a Flexible Gallery and insert a Label, set the Height of the Label as below:
RoundUp(Len(ThisItem.test1)/11,0)*36

Best Regards,
Qi