assignSensitivityLabel results in 402 even though Premium API in Azure is set-up

[Karmakstylez]

Describe the bug
When calling the API from either Invoke-MgGraphRequest or the Microsoft Graph Explorer it results into the following error:

{
    "error": {
        "code": "paymentRequired",
        "message": "Payment Required. Ensure that your application is able to call this premium API.For details see https://aka.ms/graph-metered-overview",
        "innerError": {
            "date": "2025-04-02T07:35:50",
            "request-id": "-",
            "client-request-id": "-"
        }
    }
}

To Reproduce
Steps to reproduce the behavior:

1. Create the App Registration
2. Assign the Sites.ReadWrite.All and Files.ReadWrite.All permission to the App Registration
3. Use the command in the AzureCloudShell to create the Billing Account: https://learn.microsoft.com/en-us/graph/metered-api-setup
4. Get a successful back that the billing account is created.
5. Authenticate with Connect-MgGraph -NoWelcome -AppId $AppId -TenantId $TenantId
6. Run the API endpoint / PowerShell script below:

 # Update the file's sensitivity label
                    $Uri = ("https://graph.microsoft.com/v1.0/drives/{0}/items/{1}/assignSensitivityLabel" -f $Drive.Id, $File.Id)
    
                    Try {
                        Invoke-MgGraphRequest -Method "POST" -Uri $Uri -Body $Body -OutputType PSObject
                        $Status = $true # set so that we report the update
                        Write-Host "Label updated to $($NewLabel.Name)"
                    } Catch {
                        $Error[0].Exception.Message
                        Write-Host ("Failed to assign sensitivity label to file {0}" -f $File.Name ) -ForegroundColor Red
                    }

Or in Microsoft Graph Explorer: https://graph.microsoft.com/v1.0/sites/{siteid}/drive/items/{itemid}/assignSensitivityLabel
7. Consent the following permissions: Files.ReadWrite.All and Sites.ReadWrite.All
8. Provide the following body:

{
  "sensitivityLabelId": "REDACTED",
  "assignmentMethod": "auto",
  "justificationText": "test_justification"
}

10. You will get the 402 Payment Required, even though I have the Premium Metered function applied.Expected behavior
    The response should be HTTP/1.1 202 Accepted as I have followed the configuration steps which are available.

Desktop (please complete the following information):

• OS: Linux and Windows
• Browser Microsoft Edge
• Version 134.0.3124.95

Additional context
I would love to have a brief tutorial in setting this up so I can properly test the assignSensitivityLabel as now it is not working!

[ElinorW]

Hi @Karmakstylez,
Are you still experiencing the issue you shared above?

[Karmakstylez]

Hello @ElinorW ,

Yes I am.

~LvdW

[Karmakstylez]

Can someone help me further with this as now we cannot automate, and we couldn't test it on our tenants as well.

~LvdW

[ElinorW]

Hi @Karmakstylez,
This doesn’t appear to be an issue with Graph Explorer or the PowerShell module—it’s coming from the Microsoft Graph API itself. The 402 Payment Required error suggests the API isn’t detecting your metered billing setup correctly, even though you’ve followed the documented steps.

We recommend raising this on the Microsoft Graph Q&A forum, where the product team can investigate your billing configuration and the assignSensitivityLabel endpoint behavior more closely.

[microsoft-github-policy-service]

Hello @@Karmakstylez

Thank you for reporting your concern. Unfortunately, we in the Graph Explorer team do not have any ownership of the APIs that are causing you issues. If you report this issue in the Microsoft Q&A forum, it will get routed to the appropriate team for them to triage.
https://aka.ms/askgraph
This issue will now be closed. If you encounter any issues with Graph Explorer in the future, please feel free to open an issue.