Out of the box this new tool displays with a font that may not match your company or project standards. This and other attributes can be changed using the Annotate Tool Settings dialog.
Note that at the time of writing the '<useActive>' setting results in the 'Standard' font being used, so select an appropriate TrueType font. Defect 142260 has been filed regarding this.
Other settings may need to be changed to match your company or project standards, for instance, in the UK the unit could be set to mm and the accuracy to 0 to show whole mm when the label is placed.
These changes are stored by default in the active project's \support\dataset\settingAnnotationCellScaleOverrides.rsc file (controlled by the TFANNOTATION_OVERRIDES variable).
If nothing happens when using the new "Label Coordinate" tool then it may be the case that the terminator cell is not defined correctly
The tool will then work.