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Copilot Studio
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Copilot Studio MCP server OAuth 2.0 (Dynamic discovery) Resource Parameter Not Passed to Custom MCP

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Posted on by 50
I'm testing a custom MCP server with the new agent experience in Copilot Studio and have encountered an issue related to dynamic discovery.

Scenario:
My MCP server supports dynamic discovery and exposes tools/resources correctly. Copilot Studio is able to discover the available capabilities from the server. However, when a tool invocation requires a specific resource (or resource identifier), Copilot Studio does not appear to send the resource parameter to the MCP server during execution. Claude and GitHub Copilot can connect to the same MCP server without any problems.
 
Copilot studio error:
Failure passed to redirect url. error=invalid_request error_description=Missing BiBook subdomain. Connect using the company-specific MCP URL provided to you (it includes your subdomain).

Authorization request to MCP server:
WARNING:app.mcps.auth_provider:MCP authorize: resource=None

- Vektori
 
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  • Suggested answer
    11manish Profile Picture
    4,267 Super User 2026 Season 2 on at
    Based on the symptoms, this appears to be a Copilot Studio MCP OAuth/authorization interoperability issue rather than a problem with your MCP server.

    I would  not change or weaken the MCP server's authorization logic just to accommodate Copilot Studio. First verify the OAuth metadata and compare the
     
    authorization request generated by Copilot Studio with Claude/GitHub Copilot.

    your MCP server appears to be functioning correctly; the issue is most likely in how the new Copilot Studio agent experience handles the MCP OAuth resource
     
    parameter during authorization.
  • Suggested answer
    Ulrich_Zogo Profile Picture
    86 on at
    Hi @Vektori1
     

    The resource=None entry is the key detail here.

    In the MCP authorization specification, resource is the OAuth Resource Indicator and the MCP client is expected to include it in both the authorization and token requests, using the canonical MCP server URI.

    Since the same server works with Claude and GitHub Copilot, and Copilot Studio is already able to discover its capabilities, this strongly points to the Copilot Studio OAuth/Dynamic Discovery flow rather than the MCP server itself.

    There is also a very similar Power Platform Community case where Microsoft confirmed that Copilot Studio should obtain the resource value from the protected-resource metadata and include it in the OAuth request. When it is omitted, the authorization server can reject the request or issue a token for the wrong audience.

    I would verify one thing server-side first: /.well-known/oauth-protected-resource should return the exact company-specific BiBook MCP URL, including the required subdomain, as its resource value.

    If that is already correct and Copilot Studio still sends resource=None, I would not weaken the server-side validation. Recreate the connection using the company-specific MCP URL and capture both the authorization and token requests. If resource is still absent, this should be raised as a Copilot Studio interoperability issue with Microsoft, ideally including the HAR trace, protected-resource metadata, authorization-server metadata, and the resource=None server log.

    Also, simply switching to Manual OAuth is not guaranteed to fix this: the current Copilot Studio MCP manual OAuth configuration does not expose a dedicated RFC 8707 resource field, so the actual outgoing request should be verified.

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