Issues with AutoSave and Sensitivity Labels – Need Advice on Best Practices

Hello everyone,

I'm currently facing an issue with implementing Sensitivity Labels in Microsoft 365, and I was hoping to get some insights from others who might have encountered similar challenges.

The Setup:

We’ve implemented Sensitivity Labels with encryption in our organization to ensure external users are always authenticated when accessing our files. Our files are primarily stored on our on-premises servers. We’ve configured the labels to restrict access to authenticated users, with different permissions based on user roles (e.g., Co-Owners for internal users and restricted permissions for external users).

The Problem:

While the labeling process is working as expected, one significant issue we've run into is that AutoSave no longer functions correctly after applying the labels, particularly for documents that are encrypted when using the client app. The documents are not saving automatically, which can lead to information loss and angry employees. 🥺

I can live with the limitation that the label can only be applied in the client application (i.e., not through the web interface). However, the AutoSave problem is a significant hurdle.

Questions for the Community:

1. Has anyone else encountered issues with AutoSave after applying Sensitivity Labels with encryption? How did you work around this?
2. Are there any best practices or configuration adjustments I should consider to resolve this issue?
3. How have other organizations handled the authentication requirement for external users while still ensuring a smooth workflow?

Looking forward to hearing your thoughts and experiences!

Thanks in advance!