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

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: 03/02/2026 08:45:00 AM –Microsoft has validated that the issue is mitigated for the majority of previously affected users. Users still seeing impact will need to update their Microsoft Teams client to the most recent version and then re-start the Teams client to remediate impact. Relevant build versions are provided in the More Info section. If these actions are still unsuccessful in resolving the issue, users will need to provide HTTP Archive format (HAR) logs while reproducing the impact so that they may investigate the persisting impact.

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 3, 2026, at 9:00 PM UTC