Hi Camille_Birch, I do have a strange behavior. Applying the label in the desktop app (v 2408) applies the header / footer but see the dynamic Watermark only from time to time, e.g., sometimes it's there and sometimes not. Can you imagine what's wrong in my setup?
Secondly, when I try to open the file in the browser (Edge), I get an Error message saying the document is protected by IRM but was edited by an older version. --> This one is solved; you just need to wait some time till OneDrive and SharePoint Online recognizes it's no longer open, could take up to 15 Minutes.
I'm using Word / Office in Version 2408, that is the version Microsoft is providing in the Current Channel. When looking at an un-encrypted document in the browser and click on File - Info the version seems to be 20240905.5 for Word, 16.0.18103.42303 for Excel and 16.0.18029.40507 for PowerPoint.