Issue wiht the downgraing label

Users are encountering a problem with downgrading sensitivity labels in SharePoint when using the "Confidential – Encrypted" setting. User A can upload a file with the label, but User B, despite having the same co-author permissions, cannot change the label and receives an error. The issue arises specifically when attempting to downgrade the label to a less restrictive one. The users are seeking advice on the cause and any necessary adjustments to permissions or configurations.