Nursing homes are busy places and when they are washing your loved one’s clothing it is easy for it to get lost, misplaced, or mixed up with other resident’s clothing. This seems to happen to the new residents for some reason. Maybe because the laundry staff isn’t familiar with their belongings yet.
Also, the nursing home may have residents with dementia who may innocently take things that do not belong to them. Labeling your loved one’s clothing and other personal items helps it get found if it seems to disappear.