This is basically the theory around modern industrial revolution - https://en.wikipedia.org/wiki/Jevons_paradox
Efficiency increases demand more than the efficiency saves.
You could argue that labour does not follow that, but it is more about the technology improving rather than disrupting.
That's not some sort of natural law.
People latched on to this hypothetical situation and keep elevating its universality.
It's just a thing that can happen and may or may not in a given instance.
This is basically the theory around modern industrial revolution - https://en.wikipedia.org/wiki/Jevons_paradox
Efficiency increases demand more than the efficiency saves.
You could argue that labour does not follow that, but it is more about the technology improving rather than disrupting.