The behavior matches known Copilot issues where the agent fails after initialization, often due to connectivity, network policies, or service-side problems rather than the specific knowledge file format.
Given that:
- The error started suddenly on June 1.
- It reproduces with different agents, different users, and different file formats.
- It occurs across multiple clients (browser, Outlook app, Windows app).
The most likely causes are:
- Network/firewall/proxy policies blocking required Copilot or Copilot Studio endpoints.
- Data loss prevention (DLP) policies blocking required connectors.
- A service-side issue that requires escalation to Microsoft support.
Use the following checks and remediation steps.
- Check for network/firewall blocking
- In environments with corporate firewalls or proxies, real-time Copilot traffic can be blocked or delayed, causing generic errors.
- Open the browser’s developer tools (F12) → Network tab.
- Start a new Copilot conversation and look for long‑lived or
/subscribe-style requests associated with Copilot/Copilot Studio.
- If such requests are missing, blocked, or stuck in “pending” until timeout, the firewall/proxy is likely caching or inspecting them.
- Work with the network/security admin to:
- Allow the Copilot/Copilot Studio runtime domains listed under required services for Copilot Studio.
- Ensure Microsoft 365 endpoints (including Copilot and Copilot Chat connectivity requirements) are allowed per Microsoft 365 URLs and IP address ranges.
- Specifically ensure
config.edge.skype.com is not blocked.
- Verify data loss prevention (DLP) policies for Copilot Studio agents
If the agent is built or extended via Copilot Studio and uses Dataverse or Direct Line channels:
- Sign in to the Power Platform admin center.
- Go to Data policies → Data loss prevention.
- Edit the relevant policy or create a new one.
- In Prebuilt connectors, ensure the following are not blocked and are grouped together (either business or non‑business):
- Microsoft Dataverse
- Direct Line channels in Copilot Studio
- Save and close the policy.
If these connectors are blocked or separated into different groups, Copilot agents can fail with generic errors when trying to access knowledge or data.
- Test with a clean network path
- If possible, test from a device and network that bypass corporate security controls (for example, a non‑managed device on a home network) using the same account.
- If the error disappears, this strongly indicates a corporate network or policy issue (firewall, proxy, or DLP) that must be adjusted as above.
- Check for broader Copilot service issues and escalate
Because the issue:
- Started on a specific date,
- Affects multiple users and agents,
- Persists after client-side troubleshooting,
it can also be a tenant- or service-side problem.
- Have a Microsoft 365 admin open a support ticket with Microsoft, referencing that:
- The issue is reproducible across users, agents, and clients.
- It correlates with attaching knowledge documents.
- Network/DLP checks have been performed (or are in progress).
In similar cases reported for Copilot and Copilot Studio agents, resolution ultimately required Microsoft support to correct a backend or tenant configuration issue after escalation.
References: