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Hi there!
You're not alone — this is a confirmed issue with two separate causes worth addressing.
⚠️ First: there is an active Microsoft service degradation right now
Microsoft has confirmed a service degradation where Copilot Studio users are not receiving search results with SharePoint as a knowledge source. Their investigation identified that a recent service update contained a regression. Microsoft is reverting the update on the affected service nodes to mitigate the impact. NHSmail This may be the direct cause of the sudden break you experienced. Check your Microsoft 365 admin center under Health → Service health for the latest status.
✅ Beyond the incident — the structural cause to fix
Even once the incident is resolved, your setup has a permissions design issue that will likely cause it to break again.
Generative answers over SharePoint rely on delegated permissions when searching. Microsoft Learn This means the bot fetches content on behalf of each signed-in user, not with a global service account. When you publish your agent, the calls using generative answers are made on behalf of the user chatting with the agent, using the authentication settings configured in the agent. Microsoft Learn
So "everyone in the org has access to the SharePoint site" is not enough — the user's identity must be able to authenticate against SharePoint through the bot's auth flow.
Here's what to verify:
Sites.Read.All
Files.Read.All
In short: wait for the Microsoft rollback to complete, then verify the delegated auth setup is correct.
Hope this helps! Paolo ✅ Did this solve your issue? → Accept as Solution 👍 Partially helpful? → Click "Yes" on "Was this reply helpful?" or drop a Like! Want more tips on Power Platform & AI? Follow me here: 🔗 LinkedIn: https://www.linkedin.com/in/paoloasnaghi/ ▶️ YouTube: https://www.youtube.com/@BeyondThePlatforms 📸 Instagram: https://www.instagram.com/beyond_the_platforms/ 🌐 Website: https://www.beyondtheplatforms.com/
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