Why my label is not scaling properly on DPI change?

Question

I have created a WinForm along with a Label in Visual Studio 2022:

namespace WinFormsApp1
{
    public partial class Form1 : Form
    {
        public Form1()
        {
            InitializeComponent();
        }
    }
}

Designer:

namespace WinFormsApp1
{
    partial class Form1
    {
        /// <summary>
        ///  Required designer variable.
        /// </summary>
        private System.ComponentModel.IContainer components = null;

        /// <summary>
        ///  Clean up any resources being used.
        /// </summary>
        /// <param name="disposing">true if managed resources should be disposed; otherwise, false.</param>
        protected override void Dispose(bool disposing)
        {
            if (disposing && (components != null))
            {
                components.Dispose();
            }
            base.Dispose(disposing);
        }

        #region Windows Form Designer generated code

        /// <summary>
        ///  Required method for Designer support - do not modify
        ///  the contents of this method with the code editor.
        /// </summary>
        private void InitializeComponent()
        {
            this.label1 = new System.Windows.Forms.Label();
            this.SuspendLayout();
            // 
            // label1
            // 
            this.label1.AutoSize = true;
            this.label1.Font = new System.Drawing.Font("Segoe UI", 8.25F, System.Drawing.FontStyle.Regular, System.Drawing.GraphicsUnit.Point);
            this.label1.Location = new System.Drawing.Point(12, 9);
            this.label1.Margin = new System.Windows.Forms.Padding(4, 0, 4, 0);
            this.label1.MaximumSize = new System.Drawing.Size(200, 0);
            this.label1.Name = "label1";
            this.label1.Size = new System.Drawing.Size(197, 39);
            this.label1.TabIndex = 0;
            this.label1.Text = "Lorem Ipsum is simply dummy text of the printing and typesetting industry.";
            // 
            // Form1
            // 
            this.AutoScaleDimensions = new System.Drawing.SizeF(6F, 13F);
            this.AutoScaleMode = System.Windows.Forms.AutoScaleMode.Font;
            this.AutoSizeMode = System.Windows.Forms.AutoSizeMode.GrowAndShrink;
            this.ClientSize = new System.Drawing.Size(369, 115);
            this.Controls.Add(this.label1);
            this.Margin = new System.Windows.Forms.Padding(4, 3, 4, 3);
            this.Name = "Form1";
            this.Text = "Form1";
            this.ResumeLayout(false);
            this.PerformLayout();

        }

        #endregion

        private Label label1;
    }
}

App.manifest:

<?xml version="1.0" encoding="utf-8"?>
<assembly manifestVersion="1.0" xmlns="urn:schemas-microsoft-com:asm.v1">
  <assemblyIdentity version="1.0.0.0" name="MyApplication.app"/>
  <trustInfo xmlns="urn:schemas-microsoft-com:asm.v2">
    <security>
      <requestedPrivileges xmlns="urn:schemas-microsoft-com:asm.v3">
        <!-- UAC Manifest Options
             If you want to change the Windows User Account Control level replace the 
             requestedExecutionLevel node with one of the following.

        <requestedExecutionLevel  level="asInvoker" uiAccess="false" />
        <requestedExecutionLevel  level="requireAdministrator" uiAccess="false" />
        <requestedExecutionLevel  level="highestAvailable" uiAccess="false" />

            Specifying requestedExecutionLevel element will disable file and registry virtualization. 
            Remove this element if your application requires this virtualization for backwards
            compatibility.
        -->
        <requestedExecutionLevel level="asInvoker" uiAccess="false" />
      </requestedPrivileges>
    </security>
  </trustInfo>

  <compatibility xmlns="urn:schemas-microsoft-com:compatibility.v1">
    <application>
      <!-- A list of the Windows versions that this application has been tested on
           and is designed to work with. Uncomment the appropriate elements
           and Windows will automatically select the most compatible environment. -->

      <!-- Windows Vista -->
      <!--<supportedOS Id="{e2011457-1546-43c5-a5fe-008deee3d3f0}" />-->

      <!-- Windows 7 -->
      <supportedOS Id="{35138b9a-5d96-4fbd-8e2d-a2440225f93a}" />

      <!-- Windows 8 -->
      <!--<supportedOS Id="{4a2f28e3-53b9-4441-ba9c-d69d4a4a6e38}" />-->

      <!-- Windows 8.1 -->
      <!--<supportedOS Id="{1f676c76-80e1-4239-95bb-83d0f6d0da78}" />-->

      <!-- Windows 10 -->
      <supportedOS Id="{8e0f7a12-bfb3-4fe8-b9a5-48fd50a15a9a}" />

    </application>
  </compatibility>

  <!-- Indicates that the application is DPI-aware and will not be automatically scaled by Windows at higher
       DPIs. Windows Presentation Foundation (WPF) applications are automatically DPI-aware and do not need 
       to opt in. Windows Forms applications targeting .NET Framework 4.6 that opt into this setting, should 
       also set the 'EnableWindowsFormsHighDpiAutoResizing' setting to 'true' in their app.config. 
       
       Makes the application long-path aware. See https://docs.microsoft.com/windows/win32/fileio/maximum-file-path-limitation -->
  <!--
  <application xmlns="urn:schemas-microsoft-com:asm.v3">
    <windowsSettings>
      <dpiAware xmlns="http://schemas.microsoft.com/SMI/2005/WindowsSettings">true</dpiAware>
      <longPathAware xmlns="http://schemas.microsoft.com/SMI/2016/WindowsSettings">true</longPathAware>
    </windowsSettings>
  </application>-->

  <!-- Enable themes for Windows common controls and dialogs (Windows XP and later) -->
  <!--
  <dependency>
    <dependentAssembly>
      <assemblyIdentity
          type="win32"
          name="Microsoft.Windows.Common-Controls"
          version="6.0.0.0"
          processorArchitecture="*"
          publicKeyToken="6595b64144ccf1df"
          language="*"
        />
    </dependentAssembly>
  </dependency>
  -->

</assembly>

App.config:

<?xml version="1.0" encoding="utf-8" ?>
<configuration>
  <System.Windows.Forms.ApplicationConfigurationSection>
    <add key="DpiAware" value="true" />
    <add key="DpiAwareness" value="PerMonitorV2" />
    <add key="EnableWindowsFormsHighDpiAutoResizing" value="true" />
  </System.Windows.Forms.ApplicationConfigurationSection>
</configuration>

Program.cs:

namespace WinFormsApp1
{
    internal static class Program
    {
        /// <summary>
        ///  The main entry point for the application.
        /// </summary>
        [STAThread]
        static void Main()
        {
            // To customize application configuration such as set high DPI settings or default font,
            // see https://aka.ms/applicationconfiguration.
            Application.EnableVisualStyles();
            Application.SetCompatibleTextRenderingDefault(false);
            ApplicationConfiguration.Initialize();
            Application.Run(new Form1());
        }
    }
}

When run the app, on a 100% (96Dpi) screen:

However, when I move to a larger-scaled screen (175%):

What am I missing to have a proper scaled label on both screens?