Fix Microsoft 365 Data Loss Prevention Policy Verification Failed
Question details
Users are unable to successfully create or verify new Data Loss Prevention (DLP) policies, and specific policy conditions appear unavailable or disabled.
- Product
- Microsoft 365
- Device & OS
- not provided
- Scenario
- Creating or modifying a Data Loss Prevention (DLP) policy in the Microsoft 365 Compliance Center.
- Observed behavior
- Policy creation fails with a verification error, and certain conditions like 'Content is shared with Microsoft 365' are completely greyed out for new policies.
Ensure you have global administrator or compliance administrator permissions in your Microsoft 365 tenant before modifying Data Loss Prevention settings.
Enable Required Policy Dependencies
Microsoft requires specific workload locations and parent settings to be enabled before certain dependent conditions become available.
According to Microsoft design specifications, complex DLP conditions often depend on the selection of specific storage workloads. If a required workload is not selected, the corresponding condition will remain greyed out.
In the DLP policy creation wizard, ensure you have enabled the correct 'Locations' (such as Exchange email, SharePoint sites, or OneDrive accounts) that support the specific sharing condition you want to use.
Verify that your tenant-level external sharing settings in the SharePoint and OneDrive admin centers allow sharing. If sharing is disabled at the tenant level, sharing-related DLP conditions may fail validation.
Toggle all options on in a blank test policy to verify if the 'Content is shared with Microsoft 365' condition becomes clickable.
Escalate to Microsoft Support
If settings are correctly configured but the verification error persists, the issue may be a backend service limitation that requires direct intervention.
Looking for a simpler way to secure your documents?
While Microsoft 365 offers complex compliance center features, troubleshooting enterprise DLP policies can be frustrating and time-consuming. If you need a straightforward, secure, and highly compatible office suite for everyday document creation, WPS Office is an excellent free alternative.
- 1. Download and Install: Download WPS Office from the official website and install it on your device.
- 2. Open Your Document: Launch WPS Office and open the document you wish to protect.
- 3. Apply Protection: Navigate to the 'Protect' tab and select 'Encrypt' to easily set a password and restrict editing permissions.
Frequently Asked Questions
Why is the 'Content is shared with Microsoft 365' condition greyed out?
This usually happens because the required workload locations (like SharePoint or OneDrive) are not properly selected earlier in the wizard, or it is a backend design limitation introduced in recent Microsoft 365 updates.
Does this verification error affect my existing DLP policies?
Typically, existing policies continue to function normally. The verification error generally only appears when you attempt to modify those existing policies or create completely new ones.
Can I duplicate an old policy to bypass the verification error?
Duplicating a legacy policy sometimes retains the old configuration, but if Microsoft has updated their backend validation rules, saving the duplicated policy may still trigger the verification failure.
