Description

The Gutenberg editor does not properly display HTML entities (e.g. ­) which are contained in a custom post_type's label.
In fact it escapes the HTML entities (properly), causing the title to actually contain the string "­" in some places.

This is actually the desired behavior. When rendering the label/title it should be treated as a string rather than HTML, to prevent XSS. Unfortunately this makes it also incompatible with HTML entities.

I'm not sure if it's a bad idea to include HTML entities in the post_type's label in the first place. Anyways, WordPress displays them properly.

I located the issue in the settings-header component of the sidebar to be the root cause here. I also found a possible workaround for React which would replace known HTML entities with Unicode characters like \u00AD (Soft hyphen).

Step-by-step reproduction instructions

1. Create a new theme or plugin
2. Add a custom post_type and assign it a label with manual hyphenation (see code example below)
3. Navigate to the WordPress backend and verify that the label/title of your post type is properly displayed on the left side menu.
   
4. Create or edit a post of that post_type with Gutenberg. If not already done, open the settings sidebar on the right and verify the post_type's label/title is not properly displayed in the tab.
   

Expected behaviour

Gutenberg displays the label properly, making the "­" invisible, because the whole label fits into the tab's title.

Actual behaviour

See screenshot above.

Code snippet

// function.php (if it's a theme)
add_action( 'init', function() {
	register_post_type(
		'free_representatives',
		array(
			'label' => 'free represen­tatives',
			'public' => true,
			'show_in_rest' => true,
		)
	);
});

WordPress information

• WordPress version: 5.6
• Gutenberg version: Default shipped with WordPress version 5.6
• Are all plugins except Gutenberg deactivated? No
• Are you using a default theme (e.g. Twenty Twenty-One)? No

Device information

• Device: Desktop
• Operating system: any
• Browser: Firefox