Custom NERs training with spaCy 3 throws ValueError

I am trying to add custom NER labels using spacy 3. I found tutorials for older versions and made adjustments for spacy 3. Here is the whole code I am using:

import random
import spacy
from spacy.training import Example

LABEL = 'ANIMAL'
TRAIN_DATA = [
    ("Horses are too tall and they pretend to care about your feelings", {'entities': [(0, 6, LABEL)]}),
    ("Do they bite?", {'entities': []}),
    ("horses are too tall and they pretend to care about your feelings", {'entities': [(0, 6, LABEL)]}),
    ("horses pretend to care about your feelings", {'entities': [(0, 6, LABEL)]}),
    ("they pretend to care about your feelings, those horses", {'entities': [(48, 54, LABEL)]}),
    ("horses?", {'entities': [(0, 6, LABEL)]})
]
nlp = spacy.load('en_core_web_sm')  # load existing spaCy model
ner = nlp.get_pipe('ner')
ner.add_label(LABEL)
print(ner.move_names) # Here I see, that the new label was added
optimizer = nlp.create_optimizer()
# get names of other pipes to disable them during training
other_pipes = [pipe for pipe in nlp.pipe_names if pipe != "ner"]
with nlp.disable_pipes(*other_pipes):  # only train NER
    for itn in range(20):
        random.shuffle(TRAIN_DATA)
        losses = {}
        for text, annotations in TRAIN_DATA:
            doc = nlp(text)
            example = Example.from_dict(doc, annotations)
            nlp.update([example], drop=0.35, sgd=optimizer, losses=losses)
        print(losses)
# test the trained model # add some dummy sentences with many NERs

test_text = 'Do you like horses?'
doc = nlp(test_text)
print("Entities in '%s'" % test_text)
for ent in doc.ents:
    print(ent.label_, " -- ", ent.text)

This code outputs the ValueError exception, but only after 2 iterations – notice the first 2 lines:

{'ner': 9.862242701536594}
{'ner': 8.169456698315201}
Traceback (most recent call last):
  File ".custom_ner_training.py", line 46, in <module>
    nlp.update([example], drop=0.35, sgd=optimizer, losses=losses)
  File "C:ogrmojepythonspacy_pgmyvenvlibsite-packagesspacylanguage.py", line 1106, in update
    proc.update(examples, sgd=None, losses=losses, **component_cfg[name])
  File "spacypipelinetransition_parser.pyx", line 366, in spacy.pipeline.transition_parser.Parser.update
  File "spacypipelinetransition_parser.pyx", line 478, in spacy.pipeline.transition_parser.Parser.get_batch_loss
  File "spacypipeline_parser_internalsner.pyx", line 310, in spacy.pipeline._parser_internals.ner.BiluoPushDown.set_costs
ValueError

I see the ANIMAL label was added by calling ner.move_names.

When I change my the value LABEL = 'PERSON, the code runs successfully and recognizes horses as PERSON on the new data. This is why I am assuming, there is no error in the code itself.

Is there something I am missing? What am I doing wrong? Could someone reproduce, please?

NOTE: This is my first question ever here. I hope I provided all information. If not, let me know in the comments.