I've been using what Staples calls "sticker paper" rather than their (or Avery's) "label paper". I'm not sure what the difference is, if any. I bought it by mistake one day and it seemed to work better for me. Maybe it's all in my head. That said, I still sometimes get bubbles or edges lifting, especilly on larger fins. I've tried using a covering iron to try to get better adhesion, but my results are inconclusive.
When I get edges lifting, I usually just tack them down with CA. I haven't really figured out what to do with bubbles. Someone on TRF suggested piercing the bubble with a pin to get rid of the air and tacking down the paper, but I haven't tried that.
I haven't tried spray adhesive. I can't see why it wouldn't work. Estes recommended it for attaching the embossed cardstock wraps on the older Saturn V kits. I may have to try it. I should still have some from when I build the Saturn, assuming it's still good after all these years.