Looks correct
Client-side labelling when users edit documents or compose (also reply or forward) emails: Use a label that's configured for auto-labelling for files and emails (includes Word, Excel, PowerPoint, and Outlook).
Service-side labelling when content is already saved (in SharePoint or OneDrive) or emailed (processed by Exchange Online): Use an auto-labelling policy. You might also hear this method referred to as auto-labelling for data at rest. For Exchange, it doesn't include emails at rest (mailboxes).
correct. Exchange email:
Items in user mailboxes and shared mailboxes: emails (including received messages, drafts and sent messages), notes and tasks with deadlines. Does not apply to items in Microsoft 365 group mailboxes
Also you could use it for documents in SPO / OfB or M365 Groups but not chats.
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