This is EXACTLY swapping labels (talking about labels in Renpy because your "labels" seem to be variables for coders like me): label s2e1_flight_act3_taboo is shown to the player instead of label s2e1_flight_act3 from s2e1.rpy. The labellist goes through all strings (which are label names) into the for loop and it adds every original label to
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with a "_taboo" suffix to match labels in this file.
The vanilla AE doesn't have any variables for relations between characters so they can't change their values like in so many AVNs, especially in make-your-own-relations. If you compare original and patched content for ep1, some changes are larger than swapping one word.
Of course it doesn't do all that for ep2 content because the patch was made in December 2023 to alter content in ep1. I replied because you said that the patch wasn't working. The patch still works for ep1 content and doesn't break the game. Without the patch the first episode wouldn't have any incest content at all in 2.2.0. So, it does its job but it wasn't what you expect.