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 – ONGOING

Announcements Shagufta Naaz

16/01/2026 09:25:00 AM

NHSmail Reference: INC46725672

Microsoft Reference: TM1218513

Issue Status: ONGOING

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

Current Update: 16/01/2026 09:28:00 AM – Microsoft have identified that 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. We’re working to prepare a code fix for deployment and anticipate we may have a timeline for remediation by our next update.

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: Thursday, January 16, 2026, at 9:00 PM UTC