Honestly, tragedy is such a weird tag, because I have no idea how one dictates what series should have it and what shouldn't. If having tragic backstories and some depressing scenes warrant a tragedy tag, then a lot of series should get it, like One Piece, Frieren, or Tokyo Ghoul, but none of them got it.
Does Witch Hat Atelier have tragic backstories and some depressing scenes? Yes, it does, but I personally wouldn't consider tragedy as the defining element of the series, just as no one would tag One Piece with tragedy even if it has a lot of tear jerking moments. Witch Hat Atelier has many emotional moments, but it has a lot of heartwarming moments as well. It's a pretty well-rounded fantasy story.

I’ve been hearing great things about this series and I love how the clips of the anime have been looking, so what do you mean this has a tragedy tag (⊙…⊙ ) bruh…do I really wanna hurt myself this way…