@Niharika Ch Since you've already assigned Compliance Admin permissions to the delegated user account and included it under the label policy, but sensitivity labels are still not appearing in documents, here are a few key areas to check:
Verify Label Policy Application:
- The sensitivity labels are correctly published to the delegated user account (
examplescanner@...).
- The label policy is active and includes the labels you're expecting.
- The account is not scoped out by any policy filters or groups.
Repository Access – Important: You mentioned that only the service account has access to the repository, and not the delegated user. Since you're using delegated authentication (via Set-Authentication -DelegatedUser), the scanner operates in the context of the delegated user account.
Yes, the delegated user account must have read access to the content repositories being scanned (e.g., network shares or folders). Without this, the scanner cannot read or label the files, even if everything else is configured correctly.
Scanner Permissions: Ensure the delegated user account has the appropriate Azure AD roles (e.g., Information Protection Administrator or Compliance Administrator) — which you've already assigned — and that there are no conditional access policies blocking access.
For further details, you can refer to the official Microsoft documentation on sensitivity labels:
Hope this helps. Do let us know if you any further queries.
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