@0hmx
What the snapshot shows:
The trace is still there- you can see the purple horizontal line at the top of the schematic
The net label is positioned correctly - it's in the middle of the schematic where it should be
The trace has been moved up to avoid overlapping with the net label
The original issue was that a net label couldn't be placed without overlapping a trace. The "move trace segments" feature is designed to move traces out of the way when labels can't be repositioned.
Before the fix: The horizontal trace was overlapping with the net label
After the fix: The trace has been moved upward to eliminate the overlap
This is exactly the behavior described in the GitHub issue: "Find the most aesthetic (minimal collisions) to move segments such that netlabels don't overlap traces"
The trace is not removed- it's repositioned to resolve the collision, which is the intended functionality.