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I had the same problem. This is the way I solved it:
* create a template based on basic web content
only include   ${content.getData()}
* use this template and select the barebone in the look and feel section.
hope this helps.

If I create new web content and then add a web content display widget and select the newly create content to display an annoying "content" label is displayed on the left of the web content. I cannot find where to turn this off. It didn't appear in 7.1 and older content, created in 7.1, does not have this label. How can I remove it?

Bummer - I couldn't find an issue already filed for it, so I went ahead and filed one myself: LPS-97580

The same problem happens when you try to display a web content with a custom template in a content display page. The asset publisher in the CDP does not appy the default template associated with the structure and displays the field values in a default way, along with their field names. Now, while with a web content display you could simply tell the application to use that particular template (because there is a field to do it) and so get by, in the asset publisher there is no way to work it around, except maybe with an application display template (but there is much more work to do). Please fix it asap. 

It's not echoing out actual HTML, it's more like a JSON headless output of the values of the fields. I think (hope) it's fixed in 7.2 GA2. 

I fix this by going to where the content is displayed, click to edit it, and selecting a display template from the drop down. Something like "Basic Web Content". Save and publish.

But you cannot fix like that on an Asset Publisher