Client Side Auto Labelling not working as expected

Hello Aishat,

Please check if any of the known issues listed here matches your scenario.

Known issues with automatically applying or recommending sensitivity labels - Microsoft Support

If the required license is in place and all the above scenarios are not matching yours, check diagnostics for labels available to the user and content explorer/data explorer to differentiate working and non-working scenarios and troubleshoot further. 

Hope that helps! 

Regards,

PI

Please mark as solution, if you find the answer helpful. This will assist others in the community who encounter a similar issue, enabling them to quickly find the solution and benefit from the guidance provided.