Microsoft 365 Alert – Service Degradation – Microsoft Teams – Users may be unable to move channels into folders, such as favorites, or sections within Microsoft Teams – ONGOING

09/04/2026 09:07:00 AM

NHSmail Reference: INC46795299

Microsoft Reference: TM1275443

Issue Status: ONGOING

Issue Description: Users may be unable to move channels into folders, such as favorites, or sections within Microsoft Teams.

More info: Affected users may see channels become hidden when attempting to move them into folders or sections.

To unhide affected channels, users can navigate to Teams, See all channels. Find the hidden channel and select ‘Show’. If another attempt is made to move the channel into a folder or section, it may become hidden again.

Current Update: 10/04/2026 10:05:00 AM–Microsoft has identified a recent code change that introduced a race condition that occurs when users attempt to move channels into folder or sections, resulting in impact.

They have developed and validated a fix to address the introduced race condition, which they have begun deploying to the affected environment. They aim to provide a timeline for the deployment to complete by their next scheduled communications update.

Scope of impact: Some users attempting to move channels into folders or sections within Microsoft Teams may be impacted. This section may be updated as our investigation progresses.

Root cause: A recent code change introduced a race condition that occurs when users attempt to move channels into folders or sections, resulting in impact.

Next update by: Friday, April 10, 2026, at 10:00 PM UTC