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: 04/02/2026 09:20:00 AM –Microsoft has validated that the issue is mitigated for users attempting to add or update Copilot Studio agents, they have determined that this scenario is also occurring when attempting to add or update these agents in Copilot. They have updates the Title, User impact, More info, and Scope of impact fields to reflect the full impact scenario. They are developing a fix aimed at alleviating this remaining impact with Copilot interactions, and estimate that deployment will begin 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: Monday, February 16, 2026, at 9:00 PM UTC