I have checked in Claro theme and we are using word-wrap: break-word; hyphens...

I have checked in Claro theme and we are using word-wrap: break-word; hyphens: auto; at most of places.

1. Media library: https://git.drupalcode.org/issue/drupal-3400027/-/blob/3400027-the-label-overflows/core/themes/claro/css/theme/media-library.pcss.css
2. Vertical Tabs: https://git.drupalcode.org/issue/drupal-3400027/-/blob/3400027-the-label-overflows/core/themes/claro/css/components/vertical-tabs.pcss.css
3. Form--managed-file.css
4. details.css

and in details.css file of Olivero theme as well.

We're not using ellipsis inside Olivero theme. We should use word-wrap: break-word; hyphens: auto; here as well.