You have a Microsoft 365 E5 subscription that uses Microsoft Teams. You plan to implement sensitivity labels. You need to ensure that you can view and apply sensitivity labels to new Microsoft Teams…

Set-SPOSite is a SharePoint Online cmdlet used to manage SharePoint site properties and does not enable sensitivity labels for Teams or Groups.

While creating a sensitivity label scoped to Groups & sites is necessary, it cannot be done until the sensitivity label feature for Microsoft 365 Groups is enabled in Microsoft Entra ID.

To view and apply sensitivity labels to new Microsoft Teams sites, you must first enable the sensitivity labels feature for Microsoft 365 Groups in Microsoft Entra ID by configuring the EnableMIPLabels setting using the Azure AD PowerShell module. This allows labels to be used for container management.

Execute-AzureAdLabelSync cmdlet is used to synchronize sensitivity labels from the Microsoft Purview compliance portal to Microsoft Entra ID, but it is not the initial step to enable the feature for groups.