In my 11.11.3 and 11.11.5 versions, LCode (1.3.0.9 and 1.0.5.3) reads the RKS/...LBL files instead of using my USER/...LBL files.
VCDS successfully accesses the USER data. However, when I click on "Coding" etc., I see the original, default information again, instead of my personalized, enhanced LBL data.
And if I start LCode in "standalone" mode, it readily accepts my LBL.
It doesn't even search in the USER folder at all, which can be verified using ProcMon.
And yes, copying is always an option, but that would essentially render the USER folder pointless.
The LCode.ini file specifies where LCode searches for files. However, if nothing is entered there, there's a small drawback: The structure of the label folders must be such that the files for each language are located in the main directory. This prevents a fallback to English versions if a German file doesn't exist for a particular control unit.
Since most users don't modify their LBL files themselves, and these files are encrypted for newer vehicles anyway, I believe the best solution is to provide as much information as possible to 99% of customers, rather than saving 1% of enthusiasts the trouble of copying it.
If the modified special LBL file proves useful, it makes more sense to include it instead of the original file, or to expand the original file accordingly. -> Simply email the file.
LCode is by Niels Ezerman. You could, of course, simply ask him if he would like to adjust the search order, as his contact information is available in the program.