Default sensitivity labels is grayed out for a SharePoint site

Question

I am attempting to configure a SharePoint site for a Default Sensitivity Label but I am finding that the option is grayed out/disabled as in the screenshot below:

I have SharePoint admin permissions.

Also confirmed this setting. (Get-SPOTenant).EnableAIPIntegration

True

Also the labels are published to my account and I am able to view them in other applications like Word and Outlook. The label itself is scoped properly

Any suggestions would be appreciated.

Answer 1

Hi @jpcapone,

Set DisableDocumentLibraryDefaultLabeling to true will also disable the DefaultLabeling, you could run following cmdlet to enable the feature

Set-SpoTenant -DisableDocumentLibraryDefaultLabeling $false

And if a library is enabled for IRM, you won't be able to select a default sensitivity label, you could check the following requirements

https://learn.microsoft.com/en-us/purview/sensitivity-labels-sharepoint-default-label#requirements

https://learn.microsoft.com/en-us/power-bi/enterprise/service-security-sensitivity-label-change-enforcement

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