Symptoms
During a live meeting we found some errors in the K2 Host Server error logs that indicated this error - Default security label could not be found - and there also seemed to be a performance hit when many users opened a SmartForms web part with a K2 worklist control on a live SharePoint intranet site.
Diagnoses
After some digging we found that this is a known issue and will be resolved in 4.6.9 however a coldfix was sent for 4.6.7 and now recently when they upgraded to 4.6.8 the coldfix was also re-applied for the new version.
Resolution
After applying the latest coldfix, the issue seems to be resolved and they're not getting the error messages in the ticket anymore.