Microsoft Fabric Data Engineer Associate DP-700 Practice Question

Applying a default sensitivity label at the workspace level causes any newly created or uploaded item to inherit that label automatically, satisfying the requirement that every new item start as Contoso Confidential. Because the default-label feature can be enabled without also enforcing mandatory labeling, authors remain free to replace the default with a different label.

Enabling a mandatory label would not automatically stamp the item; it only blocks saving until a user chooses a label, so the requirement for automatic assignment is unmet. Enabling inheritance from source data applies only when content is created from existing labeled data, not when authors create brand-new items. Relying solely on tenant-level auto-labeling policies does not guarantee that every new workspace item immediately receives the required label, and it ignores the need for authors to change the label on demand. Therefore, setting a default sensitivity label while allowing overrides is the correct choice.