M365 Word Copilot Error

Question

I am receiving an error message: 'You cannot create content from this file because it is restricted by organization policy' when I try to create a Word document using another Word document using Copilot. At first, I thought it was due to sensitivity labels, but I realized that there weren't any label icons showing up.

What are the possible causes of the error message

Answer 1

I have the same issue with no protections on the file and no policies configured to restrict it in any way. Is there a setting I needed to change when I got Copilot to allow this? Where in the admin center can I fix this problem for our users?

Answer 2

This is something very new to everyone, but have you checked whether the document is protected by IRM?

How long is that document? Perhaps cut and paste its contents into another new document and see if it works?

Answer 3

Dear User,

Good day!!

I understand your concern but since your concern is related to Copilot, I would also like to suggest you to post your concern in the related communities i.e., Copilot for Microsoft 365 - Microsoft Community Hub & Ask a question - Microsoft Q&A with Microsoft Copilot for Microsoft 365 tag to get the detailed help from the experts.

Note: If possible, please connect with the IT admin of your organization and check whether there are any internal policies setup in the organization.

Apologies for redirecting you to different community as the members in the category posted focus on the users with out of the box concerns on Microsoft 365, and have limited knowledge on the Copilot; so to get the fast and better assistance, we have redirected you in the correct path.

Appreciate your patience and understanding. Have a great day!!

Best Regards,

Sophia