Sensitivity labels and Microsoft 365 containers

 If your organization uses mandatory sensitivity labels for Microsoft 365 groups (Containers including Teams and Microsoft 365-connected SharePoint sites); your IT administrator should ensure that roster containers are exempt from this requirement. Or that mandatory sensitivity labels have a default value that is always applied to roster containers when created. 

Reference Documentation:

• Apply and manage sensitivity labels in Microsoft 365
• Manage sensitivity labels for Groups & Sites
• PowerShell: Set default sensitivity labels