Modernizing Sensitivity Label Grouping for App Display

Microsoft announced the modernization of grouping for sensitivity labels to a new “dynamic architecture.” It doesn’t take much to be more dynamic than the previous parent-child arrangement. Even if the announcement is a tad overhyped, it’s still goodness because administrators can now move labels between label groups in a way that wasn’t possible before. The new way of displaying labels should be everywhere in December 2025.
  
https://office365itpros.com/2025/10/29/sensitivity-labels-groups/