Windows 365 Watermarking - QR Codes Missing in Screenshots/Teams from Within Session?

Hi all,

I've implemented watermarking on our Windows 365 setup using the official Microsoft guide, and I'm seeing behaviour that I'd like to confirm is expected.

Current Situation:

• Watermarking is enabled and working (QR codes appear when I screenshot from my local client PC)
• However, when taking screenshots FROM WITHIN the Cloud PC session itself, no QR codes appear
• Similarly, when screen sharing via Teams from within the Cloud PC session, participants don't see the QR codes

My Question: Is this the intended behaviour? Should QR codes only appear when capturing externally (from the client device) but not when capturing internally (from within the Windows 365 session itself)?

I've read through the Microsoft documentation but can't find explicit clarification on whether internal screenshots should show watermarks or if the protection is specifically designed for external capture attempts.

Can anyone confirm this behaviour or point me to official documentation that explains the internal vs external capture distinction?

Thanks in advance!