As you know Co-Auth on protected documents was announced during Ignite last week and it has been going on for quite some time in Preview before hand. In our org we have had this enabled for quite some time:
however we seem to experience some issues that shouldn't be really happening and I strongly believe it is a bug since it is working but not as expected.
If you open a browser and then open a file that is stored in OneDrive for business or SharePoint online "with a desktop app" that is also encrypted with Sensitivity label it works great, Auto Save is "ON", Co-author works as well.
However, in our organization we use OneDrive for business to redirect our known folders (Desktop, Documents etc.), now if I create a document on the desktop (which automatically creates it in OneDrive for business folder Desktop) and then I label the file with encryption and save it or close and save it, if I open it again from the the Desktop the Auto Save is OFF and it cannot be turned ON. Ironically, if I open a browser and go to my OneDrive Desktop folder and open the same document from the browser with the desktop app ("Open with Desktop App") Auto Save is ON and it works great.
Anyone else experiencing this issue? Do you know perhaps how to fix it?