When using the 'New VI Object' scripting library function to create free text, I've found that using 'Label (system)' or 'Label (modern)' on the front panel and 'Free Label', 'Label (system)', or 'Label (modern)' on the block diagram as the enumeration value of the 'style' input creates what appears to be a correct free label on the respective panel. Why doesn't 'Free Label' work on the front panel? Are there any significant differences (other than the raised background of 'Label (modern)')?
(The example VI was saved in LV 2018)
Is strange that this particular style does not work in the Front Panel, is there a particular reason why you want to use it? At the moment I don't have an answer to give you, but you might have more luck checking the VI Scripting forum of LAVA (https://lavag.org/forum/17-vi-scripting/).