List and libraries --> Document library sensitivity labels
There is no official workaround and best practice from Quest ODM as Sensitivity Label Migration not supported.
Below are some possible workarounds that might help to plan and migrate accordingly based on different scenarios, with with Microsoft to confirm further.
Workaround 1
1) To deactivate AIP, migrate the data and then reactivate in the target. This can be done through the Azure Portal or the M365 Admin Portal.
Through the Azure Portal, the steps are as follows:
2) Open a new browser window and sign in to the Azure portal. Then navigate to the Azure Information Protection pane. For example, in the search box for resources, services, and docs: Start typing Information and select Azure Information Protection.
3) On the initial Azure Information Protection pane, select Protection activation.
4) On the Azure Information Protection - Protection activation pane, select Deactivate. Select Yes to confirm your choice.
5) The information bar displays Deactivation finished successfully and Deactivate is now replaced with Activate
6) Once it is enabled, migrate labels with Microsoft advice documentation here or Microsoft assistance to be reach for the label to be migrated.
Workaround 2
Enable and publishing sensitivity labels policy for better sensitivity label handling refers to Microsoft Document here
Once the policy is published, based on Microsoft it should took 24 hours to find the labels update, (some scenario might happen for more than 24 hours).
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