Thanks for the suggestions and testing this out for me. Solutions for all posts that said:
A -it can't be done.
B -suggested workaround.
I don't want to make this label anchor to 'label location', as it is absolutely invaluable that it locks the label to the vertex that it is labeling. But I ended up using one I rarely use, but have in my template, that is anchored to the label location. When I 'm dragging it anyway it doesn't matter so much what the non-dragged state is anchored to.
Thanks to you both.
Credit where credit is due! Give kudos or accept as solution whenever you can.