Microsoft 365 Alert – Service Degradation – Microsoft Teams – Users with sensitivity label inheritance enabled for shared files to meetings may not have it function as expected – RESOLVED

03/09/2025 08:45:00 AM

NHSmail Reference: INC46619352

Microsoft Reference: TM1147028

Issue Status: RESOLVED

Issue Description: Users with sensitivity label inheritance enabled for shared files to meetings may not have it function as expected.

More info: Users may see impact with inheritance enabled through Auto or Recommendation.

Final Update: 03/09/2025 12:30:00 PM – Microsoft have determined that a recent standard service update inadvertently contained a code regression, which resulted in impact. They’ve developed and deployed the fix to address the misconfiguration and confirmed after monitoring service telemetry, that impact has been remediated.

Scope of impact: Any user that has sensitivity label inheritance enabled from shared files to meetings may be impacted by this event.

Root cause: A recent standard service update inadvertently contained a code regression, which resulted in impact.

Next steps: Microsoft are reviewing their standard service update procedures to better identify similar issues during their development and testing cycles.