Hi @Shim Kwan ,
Thanks for your post!
Built-in labeling is part of the Azure Information Protection add-in for Microsoft 365 for Enterprise apps, and updates are pushed as part of Microsoft 365 apps releases, as noted in this article. I spoke with someone on the AIP team about the requirements and he also verified what the sales rep said. You do need Microsoft 365 for Enterprise Apps to use this feature.
Let me know if this helps answer the question. I'm happy to share any feedback you have around the licensing requirements, though, and apologize for any lack of clarity.
https://learn.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels-office-apps
Marilee
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