A Data Loss Prevention (DLP) policy in my Power Platform environment is preventing Copilot Studio from accessing or using the SharePoint connection as a knowledge source.
I need guidance on how to resolve this issue from an admin's POV
You can refer to the following article, which explains how to manage Data Loss Prevention (DLP) policies in Power Platform. Since your agents are deployed in a Power Platform environment, these policies must be configured through the Power Platform Admin Center:
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