Unable to create or update Copilot agents (sudden issue after weekend)

There is no documented service outage or specific known issue in the provided material that matches a sudden, general failure to create or update Microsoft 365 Copilot agents after a given date.

However, several configuration and policy-related issues can block agents from working as expected. The following checks and steps are recommended:

1. Verify data loss prevention (DLP) and data policy compliance

• If agents violate data policies, users see a DataLossPreventionViolation error and the agent becomes unusable for end users.
• Since March 2025, agents can no longer be exempted from data policy enforcement via PowerShell.
• Action: An admin should review data policies that apply to Copilot Studio and Microsoft 365 Copilot agents and confirm that recent policy changes (for example, new or tightened DLP policies) are not blocking the agents. If violations are found, update either the policies or the agent configuration.

2. Check Conditional Access policies

• Copilot Studio agents rely on Microsoft Entra ID authentication. If Conditional Access policies block token acquisition, agents can become unresponsive on channels such as Teams.
• Symptoms can include blank pages, errors that the agent is unavailable, or test chat not responding.
• Action: An admin should review Conditional Access policies applied over the weekend or recently. Ensure that policies do not block sign-in or token acquisition for the users and environments where agents are created/edited.

3. Confirm network and endpoint access

• Network security devices (firewalls, proxies) that block required Microsoft 365 endpoints can cause features to partially fail or behave unexpectedly.
• Action: Work with network/security administrators to ensure required Microsoft 365 URLs and IP ranges are allowed, including Copilot and Copilot Chat connectivity requirements, and that config.edge.skype.com is not blocked.

4. Validate app and feature availability in Teams (if using Teams)

• If agents or Copilot features are exposed via Teams, ensure the relevant apps are not blocked or restricted by Teams admin settings.
• A similar issue has been observed where Copilot functionality disappeared in Teams because the Copilot app was configured as “Unblocked” but not made available to users; updating availability resolved the issue.

5. Check known limitations for Agent Builder

• Auto-sharing of SharePoint files/folders is limited to specific security groups; if permissions were changed, agents might lose access to knowledge sources.
• Lockbox and Customer Managed Keys are not supported for agents created with Microsoft 365 Copilot.
• Agents created with Microsoft 365 Copilot cannot be used in Teams Chat.
• If web content was disabled via the “Allow web search in Copilot” policy, web content as a knowledge source is blocked even if the UI toggle appears enabled.
• Action: Confirm that no recent changes were made to SharePoint permissions, Lockbox/CMK configurations, or web search policies that would affect agent behavior.

6. Collect diagnostics and contact support

• From within Microsoft 365 Copilot, select Send feedback.
• In the feedback ticket, include:
  • That the issue is related to Agent Builder in Microsoft 365 Copilot.
  • Agent ID, tenant ID, environment ID, and session ID.
  • If the issue involves the Agent preview pane or Describe tab, type /debug in the chat box and include the contents.
• These details can be copied from the Get support section of the Help menu in Agent Builder.

Given the sudden onset after a weekend, priority should be to:

1. Review any changes in Conditional Access, DLP/data policies, or network/firewall rules made during that period.
2. Verify Teams/Copilot app availability settings if agents are surfaced via Teams.
3. Open a support ticket with the detailed diagnostics above so the service team can check for backend issues specific to the tenant and environment.

References:

• Agent Builder in Microsoft 365 Copilot
• Troubleshoot Conditional Access policy issues
• Troubleshoot data policy enforcement for Copilot Studio
• Sales agent FAQ
• Use the Change Review Agent
• Manage agents for Microsoft 365 Copilot
• Copilot button missing & functionality missing in Teams since new version installed last week + Public Preview version today - Microsoft Q&A
• Microsoft 365 Copilot Retrieval API errors with Authorization Failed - User does not have valid license - Microsoft Q&A