Multiple Instances - Lables

Could be missing somthing simple here. However lables are not creating when using multiple instances template. It tags the vm with goog-dm-(machinename) and just ignores any labels I have under properties

simplified yaml below. VMs create perfectly minus the lables specified.

imports:
- path: common.py
name: common.py
- path: default.py
name: default.py
- path: vm_instance.py
name: vm_instance.py
- path: vm_multiple_instances.py
name: vm_multiple_instances.py

resources:
- name: vm-multiple-instances
type: vm_multiple_instances.py
properties:
labels:
buildkey: example
nextbuildkey: example2