Microsoft 365 Copilot can only process (summarize, answer questions about) a labeled file when the user has the Copy and extract content (EXTRACT) usage right granted by the applied sensitivity label.
From the table of labels:
* Label1 # VIEW only (no EXTRACT) # Copilot cannot summarize.
* Label2 # VIEW and EXTRACT granted # Copilot can summarize.
* Label3 # VIEW and EXPORT (no EXTRACT) # Copilot cannot summarize.
Since File2 is labeled Label2, it's the only file for which User1 has the required EXTRACT permission, so it' s the only file Copilot can summarize.
References:
Microsoft Learn - Sensitivity labels and Copilot for Microsoft 365: Copilot requires the Copy and extract content (EXTRACT) permission to process labeled content.https://learn.microsoft.com/microsoft-365
/compliance/sensitivity-labels-copilot
Microsoft Learn - Usage rights for encryption with sensitivity labels (VIEW, EXTRACT, EXPORT definitions)https://learn.microsoft.com/microsoft-365/compliance/encryption-sensitivity-labels#usage-rights- and-permissions