Microsoft 365 Alert – Service Degradation – Microsoft Copilot (Microsoft 365) – Some newly licensed users can’t leverage any Microsoft 365 Copilot premium features in any Outlook client – RESOLVED

Announcements Shagufta Naaz

26/02/2026 08:44:00 AM

NHSmail Reference: INC46759366

Microsoft Reference: CP1238907

Issue Status: RESOLVED

Issue Description: Some may users see incorrect service names and descriptions in Services and the Event Viewer upon upgrade to Windows 11.

More Info: This issue impacts Copilot premium features for newly licensed users in the Outlook desktop client, Outlook on the web, and Outlook mobile.

Final Update: 09/03/2026 08:38:00 AM – Following the completion of Microsoft’s licensing syncs, their internal service telemetry has verified that users can leverage Copilot premium features from the Outlook client and that impact has been remediated.

Scope of impact: Your organization is affected by this event, and some newly licensed users attempting to use any Copilot premium features in any Outlook client may be impacted. This information may be updated as our investigation continues.

Root cause: A caching issue is preventing licensing updates from being applied as expected and resulting in the impact.

Next Steps: Microsoft are further analyzing the isolated licensing sync pipeline failure to better understand what caused the underlying issue, which will help us prevent similar issues in the future.