Present in Teams option in powerpoint doesn't work on encrypted files

We use Sensitivity labels in our organization to classify and protect our data. What seems to happen is that if you have a PowerPoint presentation that is protected (excluding a one that you specify the permissions manually / Apply your own permissions) and you try to click the button on "Present in Teams" it doesn't work, your screen shows a message that states:

The participants on the other end see the following:

I couldn't find any documentation whether this is some sort of limitation so I was just wondering whether you guys have had any of these pop up?