From my research, and from feedback on two of my previous posts, I am assuming that the overpost environment (Maplex) of ArcGIS Pro ignores labels on route hatches:
Certainly, the overpost environment of ArcMap ignored labels on route hatches because at About displaying hatches—ArcMap | Documentation (arcgis.com) in the ArcMap Help it says:
"Hatches do not respect the ArcMap overposting environment. As such, hatches and their labels can overlap one another."
My client currently uses an in-house solution to label chainages along its railroads by using SQL Server and ArcPy code to read polyline feature coordinates and create 3 million plus points each night just for labeling chainages. The result is aesthetically pleasing even in areas with many railroad tracks (see below) but they were hoping to have the Location Referencing extension unlocked by ArcGIS Roads and Highways take over that function.
However, when the line symbology of the LRS Network layer is configured (using instructions at Draw measured hatches along lines—ArcGIS Pro | Documentation) to try and emulate that result, the lack of awareness that the ArcGIS Pro overpost environment has for route hatch labels means the result achieved is like this: