See the solution below in Explanation.
Explanation:
To prevent the folder C:\app1\data from being monitored by Endpoint Data Loss Prevention (DLP), follow these steps:
* Configure File Path Exclusions:
* Open the Microsoft Purview compliance portal.
* Navigate to Data loss prevention > Overview > Data loss prevention settings > Endpoint settings.
* Look for the File path exclusions section.
* Add an exclusion for the path C:\app1\data.
* Files within this folder will not be audited or subject to DLP policy enforcement12.
Remember to validate this configuration and ensure that the folder is excluded from DLP monitoring