Why don't self-hosted GitHub Action Runners with label `ubuntu-latest` get run with a cloud fallback?

Often my ubuntu-latest jobs on GitHub Actions end up in queue limbo with:

Can’t find any online and idle self-hosted or hosted runner in the current repository, account/organization that matches the required labels: ‘ubuntu-latest’
Waiting for a self-hosted or a hosted runner to pickup this job…

Here’s the matrix that I use:

So I followed what that message said, and decided to supplement the cloud offering by setting up a self hosted ubuntu-latest runner on one of my Raspberry Pis and giving it the ubuntu-latest label:

Despite that, the hanging is continuing just the same, as it seems the self hosted runner just never takes any of the load.

From what I’ve gathered, that waiting in queue message from the top of this post is incorrect, a project can either run exclusively on github hosted, or exclusively on self-hosted, but not both. However, this is never explicitly communicated and the queue message seems they can run along-side each other, such as what I’m hoping to do, such that jobs for ubuntu-latest can use either the github hosted runner or the self-hosted runner, depending on whatever is available.

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