
Starting 2026-05-27 ~03:30 UTC, our Copilot Studio agent stopped being able to invoke its custom connector from Microsoft Teams. The agent is reachable in Teams — conversational/system interactions work — but every connector tool call returns:
The connector returned an HTTP error with code 403.
Inner Error: Error from token exchange: Permission denied due to missing connection ACL
Setup: Custom connector with x-api-key, maker-provided credentials (I'm the connection owner), "Authenticate with Microsoft" Entra SSO. Agent and connection in the same Default environment.
Behavior:
Tried (none resolved it): republishing, re-adding the agent in Teams, deleting and recreating the connection from scratch (new GUID, same error).
Why I think this is service-side:
Another customer posted an essentially identical error today in a completely different setup — different tenant, managed Prod environment, built-in Azure Blob Storage connector, service principal auth:
Two unrelated tenants, different connectors, different auth methods, same missing connection ACL token-exchange error in the Teams channel within hours of each other points to a Microsoft service-side issue, not per-tenant config.
Questions: