You have a Microsoft 365 E5 tenant. You create an auto-labeling policy to encrypt emails that contain a sensitive info type. You specify the locations where the policy will be applied. You need to…

Before turning on an auto-labeling policy, especially one that encrypts emails, it is crucial to run it in simulation mode first. This allows you to evaluate the policy's impact, identify potential false positives, and ensure it correctly identifies and encrypts the intended content without disrupting user workflows.

Turning on co-authoring for files with sensitivity labels is a separate configuration related to document collaboration, not a prerequisite for deploying an auto-labeling policy for emails.

Reviewing sensitive information in Activity explorer might be part of an investigation or monitoring, but it is not the required first step for deploying a new auto-labeling policy; simulation mode is specifically designed for pre-deployment testing.

Turning on the policy immediately without prior testing in simulation mode is risky, as it could lead to unintended encryption or data access issues, especially for a policy with significant impact like email encryption.