diff --git a/ee/spec/features/labels_hierarchy_spec.rb b/ee/spec/features/labels_hierarchy_spec.rb
index 33775040a14fd3c84e872f15b55fb0d811420762..4a71a45da34fcf83dd1d72f9b772b1dfa938aa20 100644
--- a/ee/spec/features/labels_hierarchy_spec.rb
+++ b/ee/spec/features/labels_hierarchy_spec.rb
@@ -38,6 +38,8 @@
           wait_for_requests
 
           click_on label.title
+
+          find_by_testid('close-icon').click
         end
 
         click_button 'Save changes'
diff --git a/package.json b/package.json
index f946b0763b6cf05695259894a285b5a233659156..2c751b9b5c14a7fc73276dac68239884e5440b6d 100644
--- a/package.json
+++ b/package.json
@@ -76,7 +76,7 @@
     "@gitlab/fonts": "^1.3.0",
     "@gitlab/query-language": "^0.0.5-a-20241017",
     "@gitlab/svgs": "3.119.0",
-    "@gitlab/ui": "97.3.0",
+    "@gitlab/ui": "98.4.0",
     "@gitlab/web-ide": "^0.0.1-dev-20240909013227",
     "@mattiasbuelens/web-streams-adapter": "^0.1.0",
     "@rails/actioncable": "7.0.8-4",
diff --git a/yarn.lock b/yarn.lock
index e8a88e60ec071976b5f632bd4d20cbf27a7624e1..2fcfe79401ca37c8df442032e441bdd02645a7a4 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -1401,10 +1401,10 @@
   resolved "https://registry.yarnpkg.com/@gitlab/svgs/-/svgs-3.119.0.tgz#becbeea7e7ee241baecdad02b9ad04de7a8aed04"
   integrity sha512-Os/PF37pCY75uLA0dmGaZe13BmirzlWH+pFLinCAPRChEC7KhHCJtIy0efRAxzkA4uatmHpJHxftuTc7NeiSNQ==
 
-"@gitlab/ui@97.3.0":
-  version "97.3.0"
-  resolved "https://registry.yarnpkg.com/@gitlab/ui/-/ui-97.3.0.tgz#8d3a59666e4d463032dd6e18ee38f14f7785fd06"
-  integrity sha512-4TqMBdHspR9+y83LEqLs+87wUSqOZIOKm9UQr9xJQszKBLdhd6TlhgAR4tsErw35d6CmSuMc4jbuGzckkoDLKA==
+"@gitlab/ui@98.4.0":
+  version "98.4.0"
+  resolved "https://registry.yarnpkg.com/@gitlab/ui/-/ui-98.4.0.tgz#6f00322f1138abf894ccaed27f19609e9d6ab376"
+  integrity sha512-M+00vM4h4wTRr87C8vGWJzoKGKBtKmlmmdQUzATDratdWbGDqHGRn8qIu/ETjugBPcmfnkRPgipEWhrCTkCoOg==
   dependencies:
     "@floating-ui/dom" "1.4.3"
     echarts "^5.3.2"
@@ -13776,7 +13776,16 @@ string-length@^4.0.1:
     char-regex "^1.0.2"
     strip-ansi "^6.0.0"
 
-"string-width-cjs@npm:string-width@^4.2.0", "string-width@^1.0.2 || 2 || 3 || 4", string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
+"string-width-cjs@npm:string-width@^4.2.0":
+  version "4.2.3"
+  resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
+  integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
+  dependencies:
+    emoji-regex "^8.0.0"
+    is-fullwidth-code-point "^3.0.0"
+    strip-ansi "^6.0.1"
+
+"string-width@^1.0.2 || 2 || 3 || 4", string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
   version "4.2.3"
   resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
   integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
@@ -13829,7 +13838,7 @@ string_decoder@^1.0.0, string_decoder@^1.1.1, string_decoder@~1.1.1:
   dependencies:
     safe-buffer "~5.1.0"
 
-"strip-ansi-cjs@npm:strip-ansi@^6.0.1", strip-ansi@^6.0.0, strip-ansi@^6.0.1:
+"strip-ansi-cjs@npm:strip-ansi@^6.0.1":
   version "6.0.1"
   resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
   integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
@@ -13843,6 +13852,13 @@ strip-ansi@^5.2.0:
   dependencies:
     ansi-regex "^4.1.0"
 
+strip-ansi@^6.0.0, strip-ansi@^6.0.1:
+  version "6.0.1"
+  resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
+  integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
+  dependencies:
+    ansi-regex "^5.0.1"
+
 strip-ansi@^7.0.1, strip-ansi@^7.1.0:
   version "7.1.0"
   resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-7.1.0.tgz#d5b6568ca689d8561370b0707685d22434faff45"
@@ -15567,7 +15583,7 @@ worker-loader@^3.0.8:
     loader-utils "^2.0.0"
     schema-utils "^3.0.0"
 
-"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0", wrap-ansi@^7.0.0:
+"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0":
   version "7.0.0"
   resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
   integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
@@ -15585,6 +15601,15 @@ wrap-ansi@^6.2.0:
     string-width "^4.1.0"
     strip-ansi "^6.0.0"
 
+wrap-ansi@^7.0.0:
+  version "7.0.0"
+  resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
+  integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
+  dependencies:
+    ansi-styles "^4.0.0"
+    string-width "^4.1.0"
+    strip-ansi "^6.0.0"
+
 wrap-ansi@^8.1.0:
   version "8.1.0"
   resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-8.1.0.tgz#56dc22368ee570face1b49819975d9b9a5ead214"