Use the Azure Information Protection add-in for sensitivity labeling

This policy setting controls whether the Microsoft Azure Information Protection add-in can be used rather than the default of built-in labeling to view and apply sensitivity labels in Office apps. It applies only to subscription versions of Office, such as Microsoft 365 Apps for enterprise.​

If you enable this policy setting and the Microsoft Azure Information Protection unified labeling client is installed, the add-in from that client replaces the default labeling built into Office apps.

If you disable this policy setting or don’t configure it, the default labeling experience that’s built-in for Office apps is used to view and apply sensitivity labels.​

For more information about this setting, see https://go.microsoft.com/fwlink/p/?linkid=2207430.