I ran into this exact same issue and symptoms. I managed to find this video online that helped me to resolve the issue. I hope it helps you as well.
Did you work this out @Techdoc10 because I have an identical issue
Yes, O365 SharePoint
What website are you using for the generative answers? Is it the SharePoint site that the Team is using?
Here is a screen shot of the error -
Yes, still no luck-
In the Settings under Security >Authentication did you set the Authentication to be Teams?