Copilot Grayed out just in Windows Outlook if encryption label applied?

[badaz06]

I have a few sensitivity labels in play (older AIP and newer labels with Unified Groups).  An odd behavior is that when I'm in Outlook on Windows 10-64 and using a label with no encryption, I can use copilot, but I apply a label with encryption it grays out.

Works for Word just fine on the same device, with or without encryption.

Mac and office.com, everything works fine.

So, any idea where to start looking at Windows Outlook and why this may not be working?

[#2]

Some additional updates: I was mistaken about it working on office.com....I realized that if I have one of the co-pilot functions started (like coaching or the re-writing function) and then enable the encryption, the Co-Pilot icon grays out yet the process continues.

So odd.

[#3]

I believe it is the bottom of this section:
https://learn.microsoft.com/en-us/purview/ai-microsoft-purview#microsoft-purview-protection-without-...

Some helpful areas to research are the overall page above as well as this:
https://learn.microsoft.com/en-us/purview/sensitivity-labels#sensitivity-labels-and-microsoft-copilo...

I believe boils down to the usage rights on the label. I am not sure it can have extract + view abilities in the label for an email as opposed to Word.

Not my area of expertise but some of the understanding I have from working with a security architect from a vendor my company is using to help with Copilot.

[#4]

@Chris_Ferraro 

Appreciate the feedback, and just FYI I have a case open with MS as well.

I saw the extract rights and such and verified that the label being applied does have this.  The other potential issue I verified was that UnifiedGroup was part of the label - in fact I created a new label and via powershell verified the UFG was there.  One of my concerns was the the initial encrypted label was created under AIP (before MIP existed) and was transformed to the new version...although there are differences that Support can't/hasn't told me what the differences are, even though via powershell I can plainly see differences.

The issue occurs when I create a new email (we default to an internal "encrypted" label).  When I do so, CoPilot is gray.  When I change the label to Public, it turns back on.

According to what Support has come back with so, this is normal.  They also stipulated that CoPilot works only on Windows Machines, which, having both a Mac and a Windows box, I have assured them that Copilot is indeed working quite fine on my Mac AND works with when the "encrypted" label is applied.

If anyone has suggestions, I'm all ears, and will keep this post updated as I learn more.

Thank you Chris!

[#5]

Just as a follow-up, Support now agrees that what I am seeing is real. Essentially I've drawn the conclusion that outlook on a windows box applies the encryption immediately (disabling CoPilot) while on a Mac not until the email is transmitted. Support has said they're working to make the experience uniform...which I *HOPE* is to make the Mac experience available on Windows, and have asked, but have not been told anything definitive.