Your preset formatting is not a standard label format. It has rows of differing heights and they differ because the text will not fit the 2.54cm row height and you have the row height set to at least 2.54 rather than exactly 2.54.
In order for this to stand a chance of working you are going to have to use a smaller font with reduced spacing between the paragraphs (say 9 pt Calibri) or you are going to need a bigger label stock.
I assume that you will want different numbers of each label according to the records, in which case the easiest way to handle that and avoid a lot of programming, would be to add the requisite number of records. You can then run a simple mailmerge using
your label document as the merge document.