Taskbar item labels (as well as ungrouped items) are indeed on their way to Windows 11 ✨
— Albacore (@thebookisclosed) April 19, 2023
Here's a demo of the current state of the feature, definitely further along than last time we looked at it
Fiddled with a few settings in the video so you can see how it reacts pic.twitter.com/7A7H0MWpJV