Relabeling files won't reflect the Label changes

Hi rgadagotti​,

When you apply a sensitivity label like “Internal” to files on an on‑premises file share, the files store the label settings as they existed at that moment. Updating the label’s published access control permissions (enabling “Export”) doesn’t automatically update already-labeled files. To apply the new settings, you must either remove and reapply the label or explicitly relabel the files using a supported tool. The most reliable method is the Purview PowerShell module, using Set-FileLabel with parameters such as ‑Path and ‑AutoLabel ‑Force to overwrite existing labels with updated settings. While the scanner can attempt relabeling, PowerShell gives precise control over which files are updated. 
https://learn.microsoft.com/en-us/powershell/module/purviewinformationprotection/set-filelabel?view=azureipps