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This behavior is expected today. It is caused by UI rendering differences and security restrictions in the SharePoint “Agent Link” web part and the Edge side panel. These surfaces sanitize or downgrade rich content, which causes URLs to appear as plain text, while the full Microsoft 365 Copilot app renders rich Markdown, including clickable links. There is no admin setting today that enables hyperlink rendering in those two surfaces.
The different behavior comes down to where the agent is rendered:
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