Are you not able to process the removal/deletion of the labels at all, or does the delete appear to go through successfully, but then the label is reapplied (or still there) later? Can you clarify how/where you are trying to remove the labels and which file types these apply to?
It depends on the file type, but certain file types require different permissions to remove labels. For example, CSV files do not support native protection but only Generic protection. Their file extensions will change to .pfile after protection. To remove protection on a Pfile or open a Pfile protected file, the user should have Export permission, as AIP needs to extract the file and give it to the user as unencrypted.
Also, if you have a default label applied at the policy level, this is expected behavior.
If you remove the "default label” option from all your policies, you will not have a default label applied automatically and if there are no other labels/policies that label files automatically based on some conditions, then the users can have files without any labels. This way they will not be forced to have a specific label applied.
For more details, please see here under “What label policies can do”.
(Note in addition that if Unified Labeling is activated, you cannot make any changes from the AIP portal unless you have AIP portal Extended support.)
Let me know if any of these scenarios apply to you and if you have further questions.
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