@FLMike
I just stated u can replicate the issue, there is nothing wrong with my flow I can replicate the issue with a new label.
And i also stated that i can confirm the label is applied.
And i also written the flow is send an email and you select a sensitivity label, thats all.
I written the replication method one action, Send Email v2 select a sensitivity label.
Im not sure why you would need an image of that.
Just to make it more clear, you can replicate the steps on a new label same issue happens.
And its a flow with one action its send email its not like you can do something wrong here.
Also adding image from purview activity explorer that we can see the label is applied and as i confirmed before this also checks out on the email itself.
But when you then try to find all emails with the label it will only say 1 item labeled.
Hope this image helps you

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