
Explanation:
A user on Device1 can print File1.docx.
Yes
A user on Device1 can print File2.docx.
Yes
A user on Device1 can print File3.docx.
No
The DLP rule blocks printing only when the file is subject to Endpoint DLP enforcement and the content matches the configured condition: sensitivity label Label1. Microsoft Purview Endpoint DLP can enforce protective actions on onboarded devices, and Microsoft lists Print as an auditable and restrictable endpoint activity for protected files.
The path exclusion is the deciding detail. Microsoft states that file path exclusions turn off DLP monitoring, alerts, and policy enforcement for files in excluded locations. For Windows file path syntax, a path ending with a backslash, such as C:\Temp\, excludes only files directly under that specified folder. A path ending with * excludes files within subfolders, while a path without trailing \ or * excludes both the folder and all subfolders.
Therefore, File1.docx can be printed because it has Label1 but is directly under C:\Temp\, so DLP enforcement does not apply. File2.docx can be printed because it is in a subfolder and not excluded, but it has Label2, so it does not match the Label1 blocking condition. File3.docx cannot be printed because it is in a subfolder, is not excluded by C:\Temp\, and has Label1, so the print action is blocked.