Microsoft 365 Alert – Service Degradation – Power BI – Some Microsoft Fabric users may be unable to create OneLake shortcuts when using Service Principle (SPN) authentication – RESOLVED

Announcements Arpan Das

12/02/2026 08:43:00 AM

NHSmail Reference: INC46748275

Microsoft Reference: PB1230662

Issue Status: RESOLVED

Issue Description: Users may have been unable to create OneLake shortcuts when using SPN authentication.

More info: Users may have experienced issues with OneLake shortcuts connected to Azure Data Lake Storage (ADLS) Gen2 when using SPN authentication on a private network.

As a workaround, users could have used organizational accounts or workspace identity authentication.

Final Update: 12/02/2026 08:47:00 AM – Microsoft has reassessed their plan for remediation and have opted to revert the update that introduced the issue to resolve the impact as expediently as possible. They have completed the reversion and confirmed that impact has been successfully remediated.

Scope of impact: Your organization was affected by this event, and some users attempting to create OneLake shortcuts when using SPN authentication may have been impacted.

Root cause: A recent service update introduced a regression in how the service authorizes certain connections, which led to authorization failures when accessing storage accounts behind firewalls.

Next update by: Microsoft are reviewing their update and testing procedures to understand why the regression wasn’t caught during our testing phase. This will drive service and testing improvements by proactively identifying similar issues in the future.