Updated Sensitivity labels not showing up in document library

My license was fine but when working with a tech support engineer, we found that the sensitivity label was original configured with the setting “Let user assign permission” when creating the sensitivity label. According to the Enable sensitivity labels for files in SharePoint and OneDrive, labels with this setting are not available for selection directly in SharePoint or OneDrive. These labels are designed to be applied using Office desktop apps and are not supported for direct application in Office for the web or from within SharePoint document library.

After changing the label's configuration to “Assign permission now”, which means permissions are predefined by the administrators, the label became available in SharePoint. This is because SharePoint and OneDrive only display labels with administrator-defined permissions, allowing users to select them when creating or editing documents.