Try either method
- Using Microsoft 365 Compliance Center: Sign in to the Microsoft 365 Compliance Center with appropriate administrative permissions. Navigate to the "Sensitivity labels" or "Information protection" section. Locate the file or content with the applied sensitivity label. Select the file and choose the option to remove or change the sensitivity label.
- Using Microsoft PowerShell: Install and configure the required PowerShell modules for Microsoft Information Protection. Use PowerShell cmdlets to remove sensitivity labels from files or content. Example PowerShell command:
Remove-RetentionCompliancePolicy -Identity "File_Path"
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hth
Marcin