Microsoft 365 Alert – Service Degradation – Power BI – Users’ email messages with a confidential label applied are being incorrectly processed by Microsoft 365 Copilot chat – RESOLVED

Announcements Arpan Das

04/02/2026 08:50:00 AM

NHSmail Reference: INC46740412

Microsoft Reference: CW1226324

Issue Status: RESOLVED

Issue Description: Users’ email messages with a confidential label applied are being incorrectly processed by Microsoft 365 Copilot chat.

More info: This issue was specific to Exchange Online email messages that are in the Sent Items and Drafts folders. The Microsoft 365 Copilot “work tab” Chat may have processed these email messages for the user that owned them even though these email messages have a sensitivity label applied, a Copilot DLP policy is configured.

Final Update: 24/02/2026 08:30:00 AM –Microsoft has successfully deployed a targeted fix across all impacted environments. The root cause has been addressed, and customers should not experience this issue with email messages going forward.

Scope of impact: Impact was specific to users leveraging Microsoft 365 Copilot Chat with email messages in their Drafts or Sent Items folder with a sensitivity label applied and a Copilot DLP policy configured.

Root cause: A code issue is allowing items in the sent items and draft folders to be picked up by Copilot even though confidential labels are set in place.

Next steps: Microsoft are refining our procedures to make our service even more resilient moving forward.