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Power Platform Community / Forums / Power Automate / Failed to create XRM c...
Power Automate
Suggested Answer

Failed to create XRM connection reference

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Hi,
 

I am very new to all of this AI agent creation and usage (not even sure if this is the right place to ask this question), and I am trying to create a data transfer automation agent guided directly by Copilot.

Following the guidance provided, I changed my environment to M365 Copilot Users.

In the "M365 Copilot Users" environment, I cannot create OneDrive for Business connections.

When attempting to create the connection, the following error appears:

"Failed to create XRM connection reference"

I am also unable to create the connection reference required to run Copilot Studio agents.

What I need to do? Do I need other access priviliges?

 

Thank you in advance

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  • Suggested answer
    sannavajjala87 Profile Picture
    931 Super User 2026 Season 2 on at
    Hi,
     
    The M365 Copilot Users environment is a special/system-managed environment and may not allow creating normal Power Platform connections or connection references like OneDrive for Business. For building agent flows or data transfer automation, I’d recommend using a regular Power Platform environment where you have proper maker permissions and where connection references can be created.
    Ask your admin to confirm:
    • You have a valid Power Apps/Power Automate/Copilot Studio license.
    • You have Environment Maker or appropriate security role in the target environment.
    • The OneDrive for Business connector is not blocked by DLP policy.
    • Connection references are allowed in that environment.
    If the same connection works in another regular environment but fails only in M365 Copilot Users, then it is most likely an environment limitation rather than a OneDrive connector issue.
     
    Thanks & Regards,
    Manoj Annavajjala

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