The process of building custom applications and tools that interact with Microsoft SharePoint, including SharePoint Online in Microsoft 365.
The behavior you are seeing is most likely related to Microsoft’s June 2026 change to agent management in SharePoint. The Approved folder is now primarily an organizational location and placing an agent there does not automatically make it selectable as the site’s main agent. In addition, the current Site AI > Main agent selector is documented as supporting the ready-made site agent and agents created in SharePoint that have a corresponding .agent file on that site. A Copilot Studio deployment may be visible and usable in SharePoint without being eligible for the Main agent selector.
Based on the description you provided, you may also consider opening a new thread in the Welcome to the Copilot Studio forum!, where similar discussions are actively shared among peers.
I hope this suggestion helps guide you toward the most suitable place for further discussion.