I recommend taking a look at updating your labels and policies. This could be a good time to start looking to migrate to Sensitivity Labels from the Security and Compliance Center. Check this blog - https://techcommunity.microsoft.com/t5/security-compliance-and-identity/announcing-timelines-for-sunsetting-label-management-in-the/ba-p/1226179
Also, you can check these links for more insight - https://learn.microsoft.com/en-us/answers/questions/95843/office-message-encryption-recipient-not-able-to-op.html
https://techcommunity.microsoft.com/t5/security-compliance-and-identity/admin-control-for-attachments-now-available-in-office-365/ba-p/204007