Microsoft Purview DLP: Instances Policy Location Retiring in January 2027

Microsoft has announced the retirement of the Instances policy location in Microsoft Purview Data Loss Prevention (DLP), with the change taking effect on January 6, 2027.

Today, organizations using the Instances location rely on the Microsoft Defender for Cloud Apps file policy infrastructure to enforce DLP and auto-labeling policies across supported third-party applications. To simplify policy management and provide a more consistent compliance experience, Microsoft is moving away from this approach and introducing dedicated application-specific policy locations directly within Microsoft Purview.

Supported applications include:

  • Google Workspace
  • Box
  • Dropbox
  • Salesforce
  • ServiceNow
  • AWS
  • Cisco Webex
What’s Changing?

Instead of creating policies under a generic Instances location, administrators will use dedicated locations for each supported application.

For example:

Current LocationNew Location
Instances (Google Workspace)Google Workspace
Instances (Box)Box
Instances (Dropbox)Dropbox
Instances (Salesforce)Salesforce
Instances (ServiceNow)ServiceNow
Instances (AWS)AWS
Instances (Cisco Webex)Cisco Webex

This change aligns non-Microsoft application protection more closely with the broader Microsoft Purview compliance framework.

Microsoft is introducing these new application locations ahead of the retirement date to allow organizations time to migrate.

Key dates:

  • Dedicated application locations will be rolled out before retirement.
  • January 6, 2027: Instances policy location officially retires.
  • Retirement rollout begins in early January 2027 and is expected to complete by mid-January 2027.
What Happens After January 6, 2027?

Once the retirement takes place:

  • New policies can no longer be created using the Instances location.
  • Existing policies configured with the Instances location will no longer be supported.
  • Organizations should use the new dedicated application locations for all future DLP and auto-labeling policies.
  • Policies that continue to rely on the retired Instances location may no longer be enforced as expected.

If your organization currently uses the Instances location, Microsoft strongly recommends recreating those policies in the new application-specific locations before the retirement deadline.

Recommended Next Steps

To avoid any disruption to DLP enforcement, organizations should begin preparing well before the 2027 deadline.

1. Review Existing Policies

Identify any DLP or auto-labeling policies currently configured through the Instances location.

2. Identify Affected Applications

Determine which non-Microsoft platforms are involved and map them to their new dedicated policy locations.

3. Recreate Policies

Build equivalent policies using the new application-specific locations within Microsoft Purview.

4. Test and Validate

Before retiring legacy policies, verify that policy enforcement, labeling, and user experiences behave as expected.

5. Update Documentation

Review operational procedures, internal documentation, and administrator guidance to reflect the new management model.

6. Notify Stakeholders

Make sure compliance, security, and support teams are aware of the upcoming change and migration timeline.

While the retirement is still several months away, organizations using third-party cloud platforms for collaboration and data storage should start planning their migration strategy now. Moving to dedicated application locations will ensure continued DLP and auto-labeling protection while providing a more streamlined and unified compliance experience within Microsoft Purview.

The bottom line: If you’re using the Instances location today, plan your migration before January 6, 2027. If you’re not, you can safely continue using Microsoft Purview as normal and take advantage of the new dedicated application locations as they become available.

Microsoft Defender: Updates to Export Quarantine Message cmdlet

Microsoft Defender is updating the Export-QuarantineMessage cmdlet to include a new -PasswordV2 parameter for plain text passwords, replacing the old -Password parameter. Microsoft offer the -PasswordV2 parameter as a new experience that allows admins and users to pass plain text for their passwords when exporting Quarantine items in PowerShell cmdlet. Admins and users should use the -PasswordV2 parameter, because using the previous -Password parameter may cause errors and Password won’t be available in the longer term.

For files that were quarantined by Safe Attachments for SharePoint, OneDrive, and Microsoft Teams, the files are exported in Base64 format.

Use the Export-QuarantineMessage cmdlet to export quarantined messages and files from your cloud-based organization. Messages are exported to .eml message files so you can open them in Outlook.

PowerShell:

$f = Export-QuarantineMessage -Identity 9c6bb3e8-db9e-4823-9759-08d594179bd3\7fec89fe-41b0-ae67-4887-5bede017d111
$bytes = [Convert]::FromBase64String($f.eml)
[IO.File]::WriteAllBytes("C:\My Documents\Quarantined Message with Attachments.eml", $bytes)

This example exports the specified message with attachments that was quarantined as malware:

  • The first command exports the quarantined message and attachments to the variable $f. The message and attachments are stored in the Eml property (the $f.eml value) as Base64 (based on the $f.BodyEncoding value).
  • The second command converts the Eml property from Base64 to bytes and stores the result in the variable $bytes.
  • The third command writes the quarantined message and attachments to the specified .eml file.

MAJOR UPDATE: Upcoming Changes for M365 Copilot Chat with Link Safety

Microsoft announce some important updates to M365 Copilot Chat that will enhance security and user experience, following: 

  1. Integration with SafeLinks:
    • M365 Copilot Chat will integrate with SafeLinks in Defender for Office 365 to provide time-of-click URL protection for the hyperlinks included in its chat responses. 
    • This change applies to users with Microsoft Defender for Office 365 Plan 1 or Plan 2 service plans. No policy configuration is needed within the SafeLinks policy.
    • Within Microsoft Defender for Office 365 Security Center, URL protection report will show the relevant summary and trend views for threats detected and actions taken on URL clicks.
  2. Native Time-of-Click URL Reputation Check:
    • For users without SafeLinks protection (which is available as part of Microsoft Defender for Office 365), M365 Copilot Chat will natively enable time-of-click URL reputation check for the hyperlinks returned in its chat responses. 
  3. Hyperlink Redaction Changes:
    • M365 Copilot Chat will no longer redact hyperlinks in its chat responses if they are found in the grounding data used to generate the responses.

When this will happen:

General Availability (Worldwide): We will begin rolling out in late March 2025 and expect to complete by late May 2025.

Rollout will start on desktop and web and will complete with mobile versions. We plan to extend these updates to Copilot Chat experiences in Office apps in the future.

How this will affect your organization:

These updates are designed to enhance the security of the links included in M365 Copilot Chat response, ensuring that users are protected from malicious URLs.

What you need to do to prepare:

You may consider updating your training and documentation as appropriate to ensure users are aware of the change in behavior with hyperlinks in M365 Copilot Chat.