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Title: Users may experience issues when utilizing multiple Microsoft 365 services User impact: Users may experience issues when utilizing multiple Microsoft 365 services. More info: Impact includes, but may not be limited to, the below services and scenarios. We will update this list as our understanding of the issue progresses. Microsoft 365 Copilot: - Users' Copilot prompts that require Microsoft 365 grounding, such as email content, may fail. OneDrive for Business and SharePoint Online: -Users may be unable to load or refresh portions of OneDrive and SharePoint, including account and storage information, search results, Favorites, Followed and Shared With Me content, recent files, lists, and news. -Some users may also experience delayed or failed file opening, Office policy-label retrieval, OneDrive synchronization, mobile camera upload, and video playback. -Users may see partial page failures, missing or stale content, repeated retries, and operation timeouts rather than a complete platform outage. Exchange Online: -Users may be unable to connect to, or experience degraded functionality, such as failures when attempting to use the search function, within Exchange Online. All connection methods are affected. Microsoft Teams: -Users may experience issues with calendar functionality and search. Users’ presence may be stale and not update automatically or through manual adjustment. User location adjustment may fail. -Microsoft Teams Room (MTR) devices and desktop phones display as offline in the Teams admin center. Microsoft Purview: -Users may face intermittent authorization failures across solutions in Purview. Purview admins can’t access the portal. Additionally, in Microsoft Purview Communication Compliance, users may see errors when loading Communication Compliance policies and Data Loss Prevention (DLP) policies. Communication Compliance policy creation and evaluation may be delayed. Microsoft Defender XDR: -Users may experience intermittent authorization failures across solutions in Defender. Microsoft 365 Admin Center: -Admins may experience issues authenticating into the admin center. Universal Print: -Users may be unable to create, upload, or retrieve print jobs. Current status: We're observing widespread recovery to Exchange Online mail connectivity, though the draining of backlogged mail queues may take longer for some organizations due to the volume of previously queued messages. Our recovery efforts are now focused on re-applying our targeted authentication component fix and restarting certain instances of infrastructure correlated with search functionality to ensure the full restoration of the associated scenarios. Scope of impact: Users attempting to perform any of the outlined impact scenarios may be affected by this event. Start time: Monday, August 31, 2026, at 3:08 PM UTC Root cause: An issue within a core authentication configuration used by multiple Microsoft 365 services is resulting in impact. Next update by: Tuesday, September 1, 2026, at 5:00 AM UTC

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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 could also open a new browser tab on the same session and access the site. The link may work as well. Current status: We've determined that reverting the update suspected of causing this issue isn't a viable path to remediation. We're reviewing alternative solutions to confirm the impact and resolve the problem. Scope of impact: Some users attempting to access SharePoint Online sites configured with Authentication Context through sensitivity labels may be impacted. Next update by: Tuesday, September 1, 2026, at 7:00 PM UTC

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We’re continuing our work to restore the remaining message data affected by this issue. We’ve made further progress across the recovery processes for messages, message edits, and shared files. Validation of the message-edit recovery process has identified additional adjustments needed before restoration proceeds, while preparation and validation for message recovery continue. We’ve also completed additional development work supporting shared-file restoration, including handling for shared channels.Custom retention processing has been re-enabled for affected active workspaces. We’ll continue to provide updates as restoration and validation progress.

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Users may experience issues when utilizing multiple Microsoft 365 services

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Some users may be unable to access SharePoint Online sites configured with Authentication Context

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Trouble Accessing Historical Messages With Custom Data Retention Policies Enabled

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