Microsoft 365 Alert – Service Degradation – Microsoft Teams – Users’ Microsoft Teams application may fail to run as optimized in Virtual Desktop Infrastructure – ONGOING

Announcements Sharmista Mohanta

31/08/2026 10:11:00 AM

NHS.net Connect Reference: INC46922402

Microsoft Reference: TM1463371

Issue Status: ONGOING

Issue Description: Users’ Microsoft Teams application may fail to run as optimized in Virtual Desktop Infrastructure.

More info: This issue affects users who have updated to New VDI solution for Teams version 26213.1002.4977.2998 or later. Restarting the Microsoft Teams application may temporarily restore optimized functionality.

Current Update: 31/08/2026 10:13:00 AM – Microsoft is observing positive trends in telemetry after applying their code fix for this issue and are allowing an additional period of monitoring to ensure that this event has fully resolved for all affected environments.

Scope of impact: Users who have updated their Virtual Desktop Infrastructure (VDI) to New VDI solution for Teams version of 26213.1002.4977.2998 or greater may experience failures of the Microsoft Teams application running as optimized for VDI. This information may be updated as our investigation continues.

Root cause: A recent update inadvertently introduced a code defect resulting in this impacting event.

Next update by: Monday, August 31, 2026, at 4:30 PM UTC