Microsoft 365 Alert – Service Degradation – Microsoft Copilot (Microsoft 365) – Some users may be unable to create or use SharePoint Online Copilot embedded agents within Microsoft 365 Copilot – RESOLVED

Announcements Shagufta Naaz

06/05/2026 08:42:00 AM

NHSmail Reference: INC46818004

Microsoft Reference: CP1301811

Issue Status: RESOLVED

Issue Description: Some users may be unable to create or use SharePoint Online Copilot embedded agents within Microsoft 365 Copilot.

Final Update: 07/05/2026 08:54:00 AM– Microsoft has completed our optimizations as well as the code fix deployment. They have confirmed through service-side telemetry that this is now mitigated and service has been restored.

Scope of impact: This issue may impact users in Europe, who may be unable to create or use SharePoint Online Copilot embedded agents.

Root cause: A portion of Microsoft Copilot infrastructure supporting text embedding generation became overloaded due to increased traffic, resulting in failures.

Next steps: They will continue to review our automated load balancing practices as well as the failures that occurred to better understand the issue and prevent future reoccurrences.