Additional features, settings, or issues not covered by specific Microsoft Teams categories
@mgmjtech
It is possible to use https://learn.microsoft.com/en-us/microsoft-365/compliance/create-sensitivity-labels?view=o365-worldwide#create-and-configure-sensitivity-labels for this.
Create a label and scope this to ‘Groups & Sites’ and choose the appropriated Privacy level, for example Private. When creating a team the user must select the label and the option to create a public team will be grayed out.