Just to clarify :-) we are just a community of volunteers, we are not Support, if you want support directly you will have to open a Ticket in the Admin Center or the O365 Admin Center.
Ok with that said.
There are many things that can be wrong. When something works in Fabric or in Copilot UI unfortunately that means almost 0, other than you know its not respectively broken. But in those Uis it does almost nothing to verify its going to work in Teams or M365.
1. Are you using Managed Environments?
2. Have you verify all licenses for the people who are IN the teams channel?
3. Have you verified you are not in the Default Environment?
4. Do you have any specific DLP Policies?
5. Do you have any specific Security groups setup that these folks need to be in?
6. If its a Private channel?
7. Can you validate that users have accounts in the Environment from the PP Admin Center
8. Verify your manifest and what settings are there
9. It can take up to 24 hours before it really works (propogates) so it could start working hours later
10. Teams itself is configured to allow the agent
The error, not your fault, is so generic and I wish they would start to make a better one
There are so many places to look and validate :-(
If these suggestions help resolve your issue, Please consider Marking the answer as such and also maybe a like.
Thank you!
Sincerely, Michael Gernaey