Microsoft fixes Outlook mail encryption label bug that won't let you select or change it

Microsoft recently fixed a couple of Outlook issues. First up, it resolved an appcrash issue that was related to typing, and second, it fixed a Gmail sign-in bug related to IMAP.

Besides these, the company has now resolved an encryption label-related bug on Outlook Desktop. The option to select a Sensitivity label or change it was broken, as neither of these options worked.

The company explained that the problem was limited to Outlook Desktop only and that the problem affected builds that were based on the new Microsoft Information Protection (MIP) SDK, which started with version 2402 Build 17328.20142. Thus, before this fix was available, the workaround was to use the Outlook web app (OWA) or the New Outlook.

Microsoft has published details about the resolution, including Outlook channel and build versions that do not have the problem:

The Outlook Team fixed a second bug that was causing the inability to apply labels with encryption. The fix is now available in the following channels and builds:

• Beta Channel: Version 2409 (Build 18024.15010)
• Current Channel Preview: Version 2409 (Build 18025.20000)
• Current Chanel: Version 2408 (Build 17928.20144)
• Monthly Enterprise Channel: Version 2407 (Build 17830.20210)

The first fix for this issue is now available in the following channels:

• Beta Channel Version 2407 (Build 17816.20000)
• Current Channel Version 2407 (Build 17830.20000)
• Current Channel Version 2407 (Build 17830.20138)

If you have updated to the fixed build and are still unable to apply a label with encryption, make sure the following policy is not enabled. When this policy is enabled, you can only apply labels that do not have encryption.

Prevent users from changing permissions on rights managed content (admx.help).

This policy can be found in multiple registry paths so please check them all.

Computer\HKEY_CURRENT_USER\Software\Policies\Microsoft\Cloud\Office\16.0\Outlook\DRM\
Computer\HKEY_CURRENT_USER\Software\Policies\Microsoft\office\16.0\common\DRM
Computer\HKEY_CURRENT_USER\Software\Microsoft\Office\16.0\Outlook\DRM\

Registry Hive	HKEY_CURRENT_USER
Registry Path	software\policies\microsoft\office\16.0\common\drm
Value Name	disablecreation
Value Type	REG_DWORD
Enabled Value	1
Disabled Value	0

You may find more details here on the support page on Microsoft's official website. Hopefully, the Outlook team will soon fix the msls70 DLL file error issue as well.