Hello Team

This is weird one and my query is for an issue that the 'ComplianceUtility' tool actually resolves. But running the utility tool on everybody's machine while rolling out built-in sensitivity labels is not the most elegant way as one can imagine.

Built in sensitivity label works in Outlooks web app but not Outlook desktop app

We are currently using M365 Business Premium licence. We created an 'Internal' sensitivity label on compliance.microsoft.com, with "assign permissions now" configuration granting co-author access to all users and groups within the organisation . The label is working in the user's Outlook web app. However, when drafting a new email in Outlook desktop app, the option to select the label is there, but when we click on the label itself it reverts back to "no label".

All the users to which label policy is scoped can see the Label. but can't apply it. Some very important insights:

1. If I create a label with "Let users assign permission" configuration and then select the "Encrypt-Only" or "Do-Not-Forward" options. Then users can see that label and apply it in the Outlook desktop app and web.

2. If I create labels with "Assign Permission now" configuration, scope it to both file and email, grant co-author access to 'Authenticated Users', or 'all users and groups within the organisation', then users can select the label in Word/Excel etc, but not Outlook Desktop app. They can assign the same label in Outlook Web though.

We are on the latest - Microsoft® Outlook® for Microsoft 365 MSO (Version 2403 Build 16.0.17425.20176) 64-bit and on Windows 10 and Windows 11 machines. The issue has been there for a month now We use built-in labels by Office apps and never used AIP unified labelling client or the classic client.

After downloading the "ComplianceUtility" tool, installing and running it, we get presented with the options to reset, record problem, collect etc. I don't select anything from the list and just exit the program. Now strangeyl, I can select the 'Internal' sensitivity label in Outlook Desktop app.

May I please get some sort of hint as to what this tool does when executed first, without the user selecting any option ?

Using the -Reset Silent option the log entries show the function being cancelled:
2022-07-06, 10:56, fncInitialize, OS edition, Microsoft Windows 10 Enterprise
2022-07-06, 10:56, fncInitialize, OS version, 10.0.19044.0
2022-07-06, 10:56, fncInitialize, OS 64-Bit, True
2022-07-06, 10:56, fncInitialize, Script module version, 3.0.3
2022-07-06, 10:56, fncInitialize, Username, ########
2022-07-06, 10:56, fncInitialize, Machine name, ###########
2022-07-06, 10:56, fncInitialize, PowerShell Host, ConsoleHost
2022-07-06, 10:56, fncInitialize, PowerShell Version, 5.1.19041.1682
2022-07-06, 10:56, fncInitialize, PowerShell Edition, Desktop
2022-07-06, 10:56, fncInitialize, PowerShell Current culture, en-US
2022-07-06, 10:56, fncInitialize, PowerShell Current UI culture, en-US
2022-07-06, 10:56, fncInitialize, Running privileged, True
2022-07-06, 10:56, UnifiedLabelingSupportTool, Parameter Reset, Triggered
2022-07-06, 10:56, fncReset, Reset Silent, Initiated
2022-07-06, 10:56, fncReset, Reset, Canceled

It would seem the variable $Private:ReadHost is not being set when the silent option is being used.