Answer: In my experience slugs will cause that type of damage on lamium especially early in the season, and they seem to prefer it over hosta foliage, perhaps it is more tender? You might try sprinkling diatomaceous earth or a product called Sluggo around the plants or take a look and handpick them at night when they are active. If it is not slugs, check for small caterpillars which can be controlled with Bt. I apologize for our delay in answering your question -- by now you have already (I hope) solved the problem.
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