Sensitivity label

Try either method

1. Using Microsoft 365 Compliance Center: Sign in to the Microsoft 365 Compliance Center with appropriate administrative permissions. Navigate to the "Sensitivity labels" or "Information protection" section. Locate the file or content with the applied sensitivity label. Select the file and choose the option to remove or change the sensitivity label.
2. Using Microsoft PowerShell: Install and configure the required PowerShell modules for Microsoft Information Protection. Use PowerShell cmdlets to remove sensitivity labels from files or content. Example PowerShell command: Remove-RetentionCompliancePolicy -Identity "File_Path"

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hth

Marcin

If the document is (or can be moved to) either SharePoint Online or OneDrive, you can remove the sensitivity label and possible associated encryption with Unlock-SPOSensitivityLabelEncryptedFile: https://zcusa.951200.xyz/en-us/powershell/module/sharepoint-online/unlock-sposensitivitylabelencryptedfile?view=sharepoint-ps

In my experience, it has worked fine even if the targeted file is not in fact separately encrypted. All you need is a user account with SharePoint Admin (or Global Admin) privileges. The cmdlet is part of the standard SharePoint Online Management module.

This approach is lighter than using the traditional AIP Super User capabilities. An another bonus is the fact that you don't need direct local access to the file to run the cmdlet.