So new lesson learnt today - Variables are of global nature in PAD and Labels are not 😊.
You can use set variable instead.
In the on Error in the subflow, set a variable like varFlag = 1. Depending on how you have designed the subflow you might also have to select "go to end of block"
Then in the Main flow add your "If" in such a way that it bypasses everything and goes to the End statement
For each
run subflow ("")
If varFlag= 0
do something
End if
End
so If you set varFlag to 1 in Subflow, it will not go inside the IF and directly go to the End which will be your next iteration of the For loop.