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Thanks for flagging this. If encryption and forwarding protection were working before and suddenly stopped, the first thing I would check is whether anything changed in the label or label policy recently.
Even small edits (like republishing a policy or modifying encryption settings inside the label) can affect enforcement.
Could you please check:
- If the label still shows encryption enabled in Purview
- If the label policy is still assigned to the same users/groups
- Whether this is happening for all users or just a few
Also, when users apply the label now, does Outlook show the encryption banner, or is it sending as a normal email?
If you haven’t made any changes, it would also help to confirm when this first started and whether it affects both Outlook desktop and OWA.
Let’s narrow that down first and then we can go deeper if needed.