When using the Place Label tool without the use of a Leader the text spaced does not get associated with the element selected. Instead it just shows #### text and not the Item Type text associated with the element.
Please ensure that you have Association Lock turned on when using the Place Label tool.
You would first need to ensure Association Lock has been toggled on in the locks toolbar as it could be greyed out on the Place Label tool.
The next thing you need to ensure is that you are definitely snapping to the element that has the Item Type associated.
You will, of course, see the yellow cross appear when the snap point has been located.
You might also like to look at using Snap Mode, like Nearest, rather than the default Keypoint. I have attached a video showing this operation.