Microsoft 365 Alert : Service Degradation – Exchange Online – Users will not see Sensitivity Labels for Modern Groups – RESOLVED

19/09/2022 13:00:00 PM (BST)

NHSmail Reference : INC31878680

Microsoft Reference : EX440173

Issue Status : RESOLVED

Issue Description : Users will not see Sensitivity Labels for Modern Groups.

More info : This post is a continuation of EX437217, wherein Admins’ Sensitivity Labels were being removed from multiple unified groups in Exchange Online.

Scope of impact : Your organization is impacted by this event, and this issue specifically affects Modern Groups with Sensitivity Labels.

Final Update : 13/10/2022 15:10:00 PM – Microsoft has confirmed that the remaining environment has since received the fix, and their telemetry indicates that this issue has been fully resolved.

Root cause : The behavior by the Security & Compliance Center Microsoft Graph API was the result of a recent change for the API to filter out parent labels so they cannot be applied in clients to enforce a parent label – child label hierarchy, resulting in Sensitivity Labels being removed after application. Further investigation determined that while all other services were restored, this issue is still impacting Modern Groups for a subset of customers.

Next Steps : Microsoft is reviewing their testing and validation processes to better identify similar issues prior to deployment.