The "Couldn't load MCP tools" error is typically not caused by a setting on the agent itself. Work IQ SharePoint and Work IQ Mail (Preview) rely on Microsoft 365 Work IQ/MCP services, and there are several prerequisites:
Your tenant must have Microsoft 365 Copilot and Work IQ (Preview) enabled.
The user configuring the agent needs the appropriate Microsoft 365 Copilot license and permissions to the SharePoint sites and mailbox.
Your Microsoft 365 administrator may need to enable the required preview features or integrated apps for the tenant.
If you're using a new or restricted environment, the preview services may not yet be available in your region or tenant.
Since the connection is created successfully but the MCP tools fail to load, this is more indicative of a tenant/service availability or permission issue than an issue with the agent configuration itself.
I would recommend verifying:
Microsoft 365 Copilot licensing.
Work IQ preview enrollment for the tenant.
That the user has access to the target SharePoint content and Exchange mailbox.
Whether the issue occurs in another environment or with another licensed user.
If all prerequisites are met, it's worth opening a Microsoft support ticket, as several customers have reported similar preview-related MCP loading issues.