Hello and thank you for your updated information.
Since the Alignment page is failing, I would suggest following this HP document on 'Alignment failed' Error Message Displays on the All-in-One. Once you fix this issue, it could potentially fix your Alignment issue with the Labels.
If the Labels are still not centered, then follow this HP document on Printer Driver Setting Definitions. This will help you change the "Print Settings" to fit your Labels.
Please let me know how your progress goes.