diff --git a/shell/components/form/LabeledSelect.vue b/shell/components/form/LabeledSelect.vue
index dc24f2f7f0..8c00fc4d0c 100644
--- a/shell/components/form/LabeledSelect.vue
+++ b/shell/components/form/LabeledSelect.vue
@@ -5,6 +5,7 @@ import { get } from '@shell/utils/object';
 import { LabeledTooltip } from '@components/LabeledTooltip';
 import VueSelectOverrides from '@shell/mixins/vue-select-overrides';
 import { onClickOption, calculatePosition } from '@shell/utils/select';
+import isEqual from 'lodash/isEqual';
 
 export default {
   name: 'LabeledSelect',
@@ -152,10 +153,13 @@ export default {
       const isOutdated = !this.options.find(opt => option[this.optionLabel] === opt[this.optionLabel]);
 
       if (isOutdated && this.options) {
-        const newOption = this.options.find(opt => option[this.optionKey] === opt[this.optionKey]);
-        const label = get(newOption, this.optionLabel);
+        const newOption = this.options.find(opt => isEqual(this.reduce(option), this.reduce(opt)));
 
-        return this.localizedLabel ? this.$store.getters['i18n/t'](label) || label : label;
+        if (newOption) {
+          const label = get(newOption, this.optionLabel);
+
+          return this.localizedLabel ? this.$store.getters['i18n/t'](label) || label : label;
+        }
       }
 
       if (this.$attrs['get-option-label']) {
diff --git a/shell/components/form/__tests__/LabeledSelect.test.ts b/shell/components/form/__tests__/LabeledSelect.test.ts
index a729166d12..7dd63e8e0d 100644
--- a/shell/components/form/__tests__/LabeledSelect.test.ts
+++ b/shell/components/form/__tests__/LabeledSelect.test.ts
@@ -2,42 +2,137 @@ import { mount } from '@vue/test-utils';
 import LabeledSelect from '@shell/components/form/LabeledSelect.vue';
 
 describe('component: LabeledSelect', () => {
-  it('should automatically pick option for given value', () => {
-    const label = 'Foo';
-    const value = 'foo';
-    const wrapper = mount(LabeledSelect, {
-      propsData: {
-        value,
-        options: [
-          { label, value },
-        ],
-      }
+  describe('should display correct label', () => {
+    it('given an existing value and option', () => {
+      const label = 'Foo';
+      const value = 'foo';
+      const wrapper = mount(LabeledSelect, {
+        propsData: {
+          value,
+          options: [
+            { label, value },
+          ],
+        }
+      });
+
+      // Component is from a library and class is not going to be changed
+      expect(wrapper.find('.vs__selected').text()).toBe(label);
     });
 
-    // Component is from a library and class is not going to be changed
-    expect(wrapper.find('.vs__selected').text()).toBe(label);
-  });
+    it('using value as label if no options', () => {
+      const value = 'foo';
+      const wrapper = mount(LabeledSelect, {
+        propsData: {
+          value,
+          options: [],
+        }
+      });
 
-  it('should update the displayed label if options are changed', async() => {
-    const newLabel = 'Baz';
-    const oldLabel = 'Foo';
-    const value = 'foo';
-    const wrapper = mount(LabeledSelect, {
-      propsData: {
-        value,
-        options: [
-          { label: oldLabel, value },
-        ],
-      }
+      // Component is from a library and class is not going to be changed
+      expect(wrapper.find('.vs__selected').text()).toBe(value);
     });
 
-    await wrapper.setProps({
-      options: [
-        { label: newLabel, value },
-      ]
+    it('using custom key as label for option object', () => {
+      const value = 'foo';
+      const label = 'Foo';
+      const customLabelKey = 'bananas';
+      const wrapper = mount(LabeledSelect, {
+        propsData: {
+          value,
+          optionLabel: customLabelKey,
+          options:     [{
+            [customLabelKey]: label,
+            value
+          }],
+        }
+      });
+
+      // Component is from a library and class is not going to be changed
+      expect(wrapper.find('.vs__selected').text()).toBe(label);
     });
 
-    // Component is from a library and class is not going to be changed
-    expect(wrapper.find('.vs__selected').text()).toBe(newLabel);
+    it('translating localized cases', () => {
+      const value = 'foo';
+      const translation = 'bananas';
+      const wrapper = mount(LabeledSelect, {
+        propsData: {
+          localizedLabel: true,
+          value,
+          options:        [{ label: 'whatever', value }],
+        },
+        mocks: { $store: { getters: { 'i18n/t': () => translation } } }
+      });
+
+      // Component is from a library and class is not going to be changed
+      expect(wrapper.find('.vs__selected').text()).toBe(translation);
+    });
+
+    describe('updating the value on options change', () => {
+      it('using new label', async() => {
+        const value = 'foo';
+        const oldLabel = 'Foo';
+        const newLabel = 'Baz';
+        const wrapper = mount(LabeledSelect, {
+          propsData: {
+            value,
+            options: [
+              { label: oldLabel, value },
+            ],
+          }
+        });
+
+        await wrapper.setProps({
+          options: [
+            { label: newLabel, value },
+          ]
+        });
+
+        // Component is from a library and class is not going to be changed
+        expect(wrapper.find('.vs__selected').text()).toBe(newLabel);
+      });
+
+      it('using values only and no labels', async() => {
+        const value = 'foo';
+        const newValue = 'bananas';
+        const wrapper = mount(LabeledSelect, {
+          propsData: {
+            value,
+            options: [value],
+          }
+        });
+
+        await wrapper.setProps({ options: [newValue] });
+
+        // Component is from a library and class is not going to be changed
+        expect(wrapper.find('.vs__selected').text()).toBe(value);
+      });
+
+      it('using translated value', async() => {
+        const value = 'foo';
+        const oldLabel = 'Foo';
+        const newLabel = 'Baz';
+        const translation = 'bananas';
+        const i18nMap: Record<string, string> = { [newLabel]: translation };
+        const wrapper = mount(LabeledSelect, {
+          propsData: {
+            value,
+            localizedLabel: true,
+            options:        [
+              { label: oldLabel, value },
+            ],
+          },
+          mocks: { $store: { getters: { 'i18n/t': (text: string) => i18nMap[text] } } }
+        });
+
+        await wrapper.setProps({
+          options: [
+            { label: newLabel, value },
+          ]
+        });
+
+        // Component is from a library and class is not going to be changed
+        expect(wrapper.find('.vs__selected').text()).toBe(translation);
+      });
+    });
   });
 });