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

Announcements Arpan Das

04/02/2026 08:50:00 AM

NHSmail Reference: INC46740412

Microsoft Reference: CW1226324

Issue Status: ONGOING

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

More info: The Microsoft 365 Copilot “work tab” Chat is summarizing email messages even though these email messages have a sensitivity label applied and a DLP policy is configured.

Current Update: 04/02/2026 08:50:00 AM – Microsoft has identified a code issue that is allowing items in the sent items and draft folders to be picked up by Copilot even though confidential labels are set in place. They have developed and started to deploy a fix to mitigate impact.

Scope of impact: Your organization is affected by this event, and users’ email messages with a confidential label applied are being incorrectly processed by Microsoft 365 Copilot chat. This section may be updated as our investigation continues.

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 update by: Tuesday, February 10, 2026, at 7:00 PM UTC