Hi @Shim Kwan ,
Thank you for your post and valuable feedback!
The reason it is recommended to use native/built-in labeling is because the AIP labeling for the Azure Information Protection client depends on the Azure and is not "MIP-enabled." The Azure Information Protection unified labeling client, on the other hand, doesn't have as many features as the classic Azure Information Protection client, but interacts with the unified MIP backend. Both of these AIP add-ins are COM add-ins that have had significant performance issues (causing app boot slowdowns and other reliability problems), and the Office team was eager to replace them with the built-in, native functionality.
The recommendation going forward is to use built-in sensitivity labeling for Office applications. The article here has a list of retired services and recommended workarounds for enabling those features. https://learn.microsoft.com/en-us/azure/information-protection/removed-sunset-services
If you provide more details about your scenario and the solutions you are looking for, I am happy to pass your feedback along to the product team and check with them for a solution that fits your needs.
You can also create your own feature requests in the Ideas forum. https://feedback.azure.com/
Let me know if this helps provide some better context and feel free to share any feedback around particular scenarios you are hoping to achieve.
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