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A few things to check first:
- Does the user have a license that covers DLP? (Business Premium, E3, E5, etc.)
- Make sure you're testing with valid input that actually matches the SIT.
For troubleshooting, set up this config:
Create the DLP policy, select Exchange Online, and scope it to your test user. Follow the images below for the config.
I've seen many times that the policy tip doesn't show. A good first way to test the DLP itself is by enabling the email notification — then you know the DLP actually matched.
Test in Outlook on the web first, then test in the desktop app.
I had this issue at a client a couple of years ago — this doc is also worth a check: https://learn.microsoft.com/en-us/troubleshoot/microsoft-365/purview/data-loss-prevention/data-loss-prevention-policy-tips#dlp-policies-in-exchange-online 🙂