Hello bszabela3 ,
Greetings! Thanks for raising this question in the Q&A forum.
This is a known platform-level regression in the Dataverse MCP Server, not something caused by your agent configuration. A recent backend change introduced a serialization type mismatch where the create_record tool expects field values as plain strings, but the connector is internally passing them as JObject (a structured JSON object), causing the failure even though the schema still correctly shows the field type as (Record).
Here are the steps you can try right away to get things working again:
Step 1: Re-add the Dataverse MCP Tool
Remove the Dataverse MCP Server connection from your Copilot Studio agent and re-add it. This forces a schema refresh and has temporarily resolved the issue for several users.
Step 2: Update Your Agent Instructions
In your agent's system instructions, add explicit guidance like: "When creating records, pass all field values as plain string values, not as objects or JSON structures." This nudges the agent to format the payload in a way the connector currently accepts.
Step 3: Test With a Minimal Record
If the issue persists on a specific table, try a test create with only the required fields filled in. This helps narrow down whether a particular field type is triggering the serialization mismatch.
Step 4: Raise a Microsoft Support Ticket if Needed
If none of the above workarounds help, open a Microsoft support ticket referencing today's date as the regression start point and include the exact error message ("item field must be a string, not JObject"). This helps Microsoft's team prioritize the fix.
Step 5: Track the Fix
The community is actively tracking this issue. You can monitor updates here: https://github.com/anthropics/claude-code/issues/66300
Microsoft is aware of this regression and a platform-side fix is expected. The workarounds above should help you stay operational in the meantime.
If this answer helps you kindly accept the answer which will help others who have similar questions.
Best Regards,
Jerald Felix.