A group of Microsoft Products and technologies used for sharing and managing content, knowledge, and applications.
Dear shiraz_ahmed_1,
Good day! Thank you for posting in our community. Your question is "Is there a way to remove a sensitivity label from a document without changing the modification data?".
You may try the cmdlet **Unlock-SPOSensitivityLabelEncryptedFile.It doesn't require MIP client, but use"SharePoint Online Management Shell"**module.
Unlock-SPOSensitivityLabelEncryptedFile -FileUrl "https://contoso.com/sites/Marketing/Shared Documents/Doc1.docx" -JustificationText "Need to decrypt this file"
Here are the related articles for your reference.
Enable sensitivity labels for files in SharePoint and OneDrive | Microsoft Learn
Unlock-SPOSensitivityLabelEncryptedFile (Microsoft.Online.SharePoint.PowerShell) | Microsoft Learn
Thank you for your cooperation and have a nice day!
Best Regards,
Sophia