Microsoft 365 Alert – Service Degradation – Microsoft Teams – Some users may be unable to update or add Copilot Studio agents in Microsoft Teams and receive an error – RESOLVED

16/01/2026 09:25:00 AM

NHSmail Reference: INC46725672

Microsoft Reference: TM1218513

Issue Status: RESOLVED

Issue Description: Users may be unable to update or add Copilot Studio agents in Microsoft Teams and receive a “permissions needed” error.

Current Update: 18/02/2026 08:38:00 AM –Microsoft are monitoring the deployment of their fix to alleviate the remaining impact with Copilot interactions to ensure that it restores service as expected. They will provide a timeline for full remediation of this remaining impact by their next scheduled update.

Scope of impact: Users attempting to add or update Copilot Studio agents through Copilot Studio to Microsoft Teams and Copilot may be affected. This information may be updated as our investigation continues.

Scope of impact: Users in organisations with the sideloading and interaction of custom apps disabled may be unable to update or add Copilot Studio agents within Microsoft Teams. This information may be updated as our investigation continues.

Root cause: A recent Copilot Studio update introduced an issue that adversely affected the permissions required to make changes to Copilot Studio agents in Teams, resulting in impact.

Next update by: Tuesday, February 17, 2026, at 10:30 PM UTC