Currently, in Pro 3.3.1, when you select a labelled layer to use Convert to Annotation the tool does not take into account that you have a reference scale set for the map.
Please change the behaviour so that Pro uses the reference scale as the default.
As noted in the tool documentation for the Conversion Scale parameter, it's "The scale at which labels will be converted. If a reference scale is set on the map, the reference scale will be used for symbol sizing and annotation feature class creation, but conversion will occur at this scale."
Since reference scale can be combined with multi-scale behavior both scales need to be taken into account when performing the conversion to ensure conversion matches what is on the screen. The reference scale known from the map, so it doesn't need to be another parameter.
As I suspect the most frequent use pattern will be to convert a single-scale label to annotation and the multi-scale behaviour is a more specialised process, I suggest using the reference scale as the default and create a user interactive process to manage multi-scale labels (similar to what is done for extent, but do it better please).
If most of the Label to Annotation runs you have picked up in your metrics are indeed for multi-scale labels I stand corrected.
Many geoprocessing tools pick up if a source dataset has a def query or items selected and ask the user if these should be honoured. Do the same for the Label to Annotation process and ask/inform the user accordingly of multi scale labels in use; and use the simplest case as the default.
The documentation is ambiguous with using "will occur at this scale" as the preceding text refers to two scale sources. I suggest it is updated to "will occur at the current map scale, not the reference scale". I do understand what it implies though, and want the behaviour to change to cater for the most often used cases.
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