Purview - Default Labelling Issue

Thank you Surya, I have applied all the above and currently is in touch with Microsoft as well.

Web clients started to work after we reset the priority of the policy. i.e. the policy was given the highest priority, changed it to the lowest and changed it back to the highest after 24 hours. My guess is it isn't anything more than a caching issue.

The default label is now applied on all the client apps as well except Word. Microsoft advised the below for the issue but we do not have luck yet. Waiting for Microsoft to get back.

• Close all office apps
• Open "Registry Editor" and Rename the location from the Office registry: Computer\HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\word to "word.old"
• Clear the following folders in the local machine, as they are the folders for the OfficeFileCache: C:\Users\%userprofile%\AppData\Local\Microsoft\Office\16.0\OfficeFileCache
• Open a regular PowerShell window and run: Install-Module -Name ComplianceUtility -AllowClobber -Scope CurrentUser
• Set-ExecutionPolicy -Scope CurrentUser -ExecutionPolicy RemoteSigned -Force
• ComplianceUtility
• R – to reset (make sure that all Office apps are closed)
• Check if the issue persists