You are a Power BI administrator for Contoso. Sensitivity labels are enabled, and the tenant uses the default downstream inheritance mode (user consent). A semantic model in a workspace is labeled Highly Confidential. A report is created from this semantic model and inherits the same label. The report author later changes the report's label manually to General. Afterwards, you relabel the semantic model to Restricted and choose to apply the label downstream. What will be the resulting sensitivity label on the report?
Downstream inheritance propagates a semantic model's sensitivity label to its downstream items only when doing so would not overwrite a label that was applied manually. Because the report author manually changed the report's label to General, that label is considered manual. When the semantic model is later relabeled to Restricted and you opt to push the label downstream, Power BI detects that the report already has a manually applied label and therefore leaves it unchanged. The report remains General. Restricted and Highly Confidential would require overwriting the manual label, which Power BI prevents, and the report never becomes unlabeled.
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