Hi @Mohammed Altamash Mohammed Suleman Khan,
Check whether you are using scoped policies that aren't configured correctly. could you please check- How to configure the Azure Information Protection policy for specific users by using scoped policies.
I would recommend you reach out the given link with the similar issue- https://techcommunity.microsoft.com/discussions/microsoft-security/failed-downloading-information-protection-policy/1383324
If you have any further queries, do let us know.