Display title being ignored after upgrading to 1.7

Problem/Motivation

The Display Title checkbox when cretaing Inline Blocks is being ignored.
This issue was introduced by https://www.drupal.org/project/block_content_template/issues/3347364 📌 Add label to block content Fixed
I was running the 1.5 version fine, however after I upgraded to 1.7 the blocks started to display the title even tough I have configured Display title to "unchecked"

Steps to reproduce

When on 1.7 version, use layout builder with Inline Blocks.
Make sure you create a block and uncheck the Display Title.

Proposed resolution

Refactor template_preprocess_block_content to account for label_display configuration.