Auto Labelling Not Working in OWA

Question

I have created two labels Public as Default and Sensitive as another with Auto labelling set up inside the sensitive label (No separate auto label is created) Now the labels are working properly in outlook client but in OWA (outlook web version) it's not working at all.
Please help

Answer 1

Hi Kasyap,

I appreciate your help in providing troubleshooting steps. However, the issue still persists.

To provide better insights, here’s a detailed breakdown of the issue and the troubleshooting steps we have taken so far:

Issue Description:

• We have Microsoft 365 E5 license assigned to a single user scoped for auto-labeling.
• The sensitivity label policy is configured specifically for Exchange Online emails.
• Auto-labeling was previously working in both Outlook on the Web (OWA) and the Outlook desktop client.
• Recently, without any configuration changes, auto-labeling has stopped working only in OWA, while it continues to function correctly in the Outlook client.

Troubleshooting Steps Taken:

✅ Verified that the sensitivity label policy is active and correctly applied in Microsoft Purview Compliance Center.
✅ Checked Exchange mail flow rules (transport rules) to confirm they are applied correctly.
✅ Cleared browser cache and cookies and tested across multiple browsers.
✅ Reviewed Microsoft 365 Service Health, but there are no reported incidents related to this issue. ✅ Used PowerShell (Get-LabelPolicy | fl Name,ExchangeLocation) to verify the policy scope.
✅ Re-published the sensitivity label policy by removing and reassigning it, but the issue persists.

Since these steps did not resolve the issue, we would appreciate your assistance in identifying any backend service changes, known issues, or additional troubleshooting steps that may help resolve this.

Thank you