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We're observing service availability recovering to above 99 percent across the affected environments, and we expect the majority of previously affected users should no longer be seeing impact from this issue. Our continued focus is on balancing the implementation of our fixes across remaining portions of affected infrastructure to ensure persistent recovery. This quick update is designed to give the latest information on this issue. Next update by: Wednesday, September 2, 2026, at 4:30 PM UTC
Title: Some users may be unable to access SharePoint Online sites configured with Authentication Context User impact: Users may be unable to access SharePoint Online sites configured with Authentication Context. More info: Specifically, users are unable to access SharePoint Online sites configured with Authentication Context through sensitivity labels. Users receive the following error message: "Server Error in '/' Application." As a workaround, users may be able to temporarily access the affected content by first clearing internet browser cookies and navigating to the root site collection before opening the direct link. Users can also open a new browser tab on the same session and access the site. The link may work as well. Current status: We've identified that a recent SharePoint Online code change intended to update authentication processing resulted in Authentication Context requests not being processed as expected, preventing some users from accessing affected sites. We've developed a fix to revert the offending change and have initiated deployment to the affected environments. We're monitoring the deployment to ensure successful completion, and as the fix progresses, some users may experience impact relief. We'll provide a resolution timeline once available. Scope of impact: Some users attempting to access SharePoint Online sites configured with Authentication Context through sensitivity labels may be impacted. Start time: Sunday, August 23, 2026, at 2:38 AM UTC Root cause: A recent SharePoint Online code change intended to update authentication processing resulted in Authentication Context requests not being processed as expected, preventing some users from accessing affected sites. Next update by: Wednesday, September 2, 2026, at 7:00 PM UTC
We continue to restore batches of messages, message edits, and shared files. Each batch requires careful planning, monitoring, and validation to ensure the affected messages are accurately restored. Custom retention processing remains re-enabled for affected active workspaces. Thank you for bearing with us while we continue to work through this complex and nuanced issue. More updates will come as restoration and validation progress.
Live Chat support is now operating normally. We will continue to monitor for system stability. We'll provide another update in 30 minutes or as soon as more information becomes available.
Monitors
Users may experience issues when utilizing multiple Microsoft 365 services
Some users may be unable to access SharePoint Online sites configured with Authentication Context
Trouble Accessing Historical Messages With Custom Data Retention Policies Enabled
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