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Sensitivity label works in Outlook web app but not desktop app

Vishal Bakshi 41 Reputation points
2024-04-30T13:00:43.08+00:00

We are currently using M365 Business Premium licence and hence are using Azure Information Protection Premium Plan 1. We created an 'Internal' sensitivity label on compliance.microsoft.com, with "assign permissions now" configuration granting co-author access to all users and groups within the organisation . The label is working in the user's Outlook web app. However, when drafting a new email in Outlook desktop app, the option to select the label is there, but when I click on the label itself it reverts back to "no label".

All the users to which label policy is scoped can see the Label. but can't apply it. Some insights:

  1. If I create a label with "Let users assign permission" configuration and then select the "Encrypt-Only" or "Do-Not-Forward" options. Then users can see that label and apply it in the Outlook desktop app and web.
  2. If I create labels with "Assign Permission now" configuration, scope it to both file and email, grant co-author access to 'Authenticated Users', or 'all users and groups within the organisation', then users can select the label in Word/Excel etc, but not Outlook Desktop app. They can assign the same label in Outlook Web though. We are on the latest  - Microsoft® Outlook® for Microsoft 365 MSO (Version 2403 Build 16.0.17425.20176) 64-bit. We use built-in labels by Office apps and never used AIP unified labelling client or the classic client.
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  1. James Hamil 22,186 Reputation points Microsoft Employee
    2024-05-16T19:42:31.4733333+00:00

    Hi @Vishal Bakshi , sorry for the delay in response. Due to the amount of follow-ups on this, it is likely to be a bug. Can you please try the following for me to see if it resolves your issue? If not can you please send me an email at "azcommunity@microsoft.com" with subject "ATTN: James Hamil" and your subscription ID? I can open a free support ticket so we can escalate this.

    When you create a sensitivity label with the "Assign permissions now" configuration, it should be possible to apply the label in both the Outlook web app and the desktop app.

    Here are some things you can check to troubleshoot the issue:

    1. Check the label configuration: Make sure that the label is configured correctly in the Azure portal. Check that the label is scoped to both email and files, and that the co-author access is granted to the correct users and groups.
    2. Check the label policy: Make sure that the label policy is applied correctly in the Azure portal. Check that the label policy is scoped to the correct users and groups, and that the label is included in the policy.
    3. Check the Outlook desktop app configuration: Make sure that the Outlook desktop app is configured correctly to use sensitivity labels. Check that the sensitivity labels feature is enabled in the app settings, and that the app is up to date.
    4. Check the user permissions: Make sure that the user has the correct permissions to apply the sensitivity label in the Outlook desktop app. Check that the user is included in the scope of the label policy, and that the user has the necessary permissions to apply the label.