Microsoft 365 Alert – Service Degradation – Microsoft Copilot (Microsoft 365) – Some users may experience inconsistencies with Microsoft 365 Copilot features – RESOLVED

21/08/2026 08:50:00 AM

NHS.net Connect Reference: INC46915778

Microsoft Reference: CP1458413

Issue Status: RESOLVED

Issue Description: Users may experience inconsistencies across Copilot features including chat, agent availability, and Microsoft 365 apps.

More info: Microsoft’s planned update communicated through MC1405498 may have resulted in Copilot feature issues for a subset of users with disabled “Microsoft Copilot with Graph-grounded chat” service plan as they transitioned from the Premium to Basic grounding experiences. While this may have been intentional for some users based on the plans that admins assigned to users, admins could have enabled the “Microsoft Copilot with Graph-grounded chat” service plan for any user that should have retained a Copilot Premium grounding experience.

Final Update: 25/08/2026 09:29:00 AM –The deployment and propagation window are complete. Users with disabled “Microsoft Copilot with Graph-grounded chat” service plans should now see the Basic license label. They also may need to clear cache or refresh their Copilot client or browser session to help accelerate entitlement convergence for their experience if they encounter any residual errors.

Scope of impact: Users with a disabled “Copilot with Graph-grounded chat” service plan may have experienced inconsistencies with Copilot features, including chat, agent availability, and integrations with Microsoft 365 service and apps.

Root cause: A planned update deployment process may have caused inconsistent Copilot feature experiences for a subset of users.

Next steps: Microsoft is reviewing their deployment processes to determine how they can avoid inconsistent Copilot experiences such as this during deployment and propagation periods.