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Troubleshooting: Control 1.26 - Agent File Upload and File Analysis Restrictions

Last Updated: October 2026

Control 1.5 dependency checked 2026-10-16 (documentation only): Defender for Cloud Apps file policies retire January 6, 2027. Connected-app scans are not proof of synchronous scanning for direct agent uploads or a universal per-agent size limit. Validate supported app/condition/action coverage and migrate to Purview DLP or auto-labeling. No tenant/UI test was performed. Audience: M365 administrators, Microsoft Copilot Studio agent authors, SOC analysts

This playbook is structured by Symptom (H2) → Likely Cause and Resolution (H3). For each symptom, work through the resolution steps in order; each step is independently safe to skip if it does not apply.

Quick-Reference Symptom Matrix

Symptom Likely Causes Section
Runtime File Upload On but files not processed Agent resides in CMK-enabled environment CMK No-Op
File Upload toggle not visible in agent settings Permissions, agent version, regional rollout Toggle Not Visible
Agent still accepts uploads after toggle disabled Unsaved change, stale cache, agent not republished Toggle Not Enforced
Uploads silently fail when toggle is on Per-agent allowlist mismatch, file size, environment-level (1.25) block Uploads Fail When Enabled
Sensitivity labels not displayed in agent responses Auto-labeling policy scope, source file unlabeled, propagation delay Labels Not Displayed
DLP not triggering on sensitive content Policy mode, scope, SIT version, latency DLP Not Triggering
Dataverse storage access too permissive Default permissions, missing retention policy Dataverse Storage Hardening
Inventory script returns incomplete results PSEdition, role Inventory Incomplete
Set-AdminPowerAppChatbot -FileUploadEnabled rejected Module version, schema not present API Surface Missing

Symptom: Runtime File Upload Toggle is On But Agent Doesn't Process Uploaded Files

Cause: Agent resides in a Customer Managed Key (CMK)-enabled environment

This is documented Microsoft platform behaviour, not a configuration error.

  1. Confirm the agent's environment has Customer Managed Keys (CMK) enabled: open Power Platform Admin Center → Environments → [Environment] → Settings and check for the CMK configuration
  2. If CMK is enabled, the runtime File Upload toggle reads On in Copilot Studio but the agent will not process uploaded files (per Microsoft Learn: Allow file input from users)
  3. This behaviour is not configurable — it is an architectural constraint of CMK-enabled environments
  4. Governance action: Document this as a compensating control gap in the agent's risk assessment. Zone 3 agents in CMK environments should treat the runtime File Upload capability as unavailable

Source: Microsoft Learn (image-input-analysis): "If your agent resides in a customer managed key enabled environment, adding files as input is allowed, but the agent doesn't process the files."

Symptom: File Upload Toggle Not Visible in Agent Settings

Cause: Insufficient role on the agent or environment

  1. Confirm the user holds AI Administrator, Power Platform Admin, or Environment Maker + agent ownership
  2. Read-only roles (e.g., Environment Reader) see agent settings without the Security panel toggles

Cause: Capability not yet rolled out to the environment or feature flag disabled

  1. Open Copilot Studio → [Agent] → Settings → Details and confirm the agent is on the current published runtime — Copilot Studio is a continuously updated service with no discrete version gate, so a missing toggle reflects feature rollout rather than a numbered release
  2. Open PPAC → Environments → [Environment] → Settings → Features and confirm Copilot features are enabled
  3. If the toggle is missing across every agent in the environment, check tenant-level feature rollout — the per-agent File Upload toggle has rolled out progressively by region

Cause: Tenant region pending rollout

  1. Open the Microsoft 365 Admin Center → Health → Message Center and search for "Copilot Studio file upload"
  2. If the feature is pending for your region, document the gap and apply environment-level controls (Control 1.25) as a temporary compensating measure

Portal path: Copilot Studio → [Agent] → Settings → Generative AI → File processing capabilities → File uploads

Symptom: Agent Accepts Uploads After Toggle Disabled

Cause: Toggle change not saved

  1. Reopen Settings → Generative AI → File processing capabilities and confirm the toggle reads Off
  2. If a Save button is highlighted, click it and re-test

Cause: Agent not republished after toggle change

  1. Most agent runtime configuration is enforced at publish time
  2. Click Publish in the Copilot Studio editor and re-test after publish completes

Cause: Stale browser session or cached configuration

  1. Wait up to 15 minutes for cache expiry
  2. Test in a new private/incognito window or with a different test account

Cause: Environment-level setting overriding per-agent state

  1. Open PPAC → Environments → [Environment] → Settings and review tenant policies that may force file upload behavior
  2. If an environment-level allowlist (Control 1.25) is permissive and the agent toggle change has not propagated, file the gap with Microsoft Support

Symptom: Uploads Fail When Toggle is On

Cause: File type not in the per-agent allowlist

  1. Open Settings → Generative AI → File processing capabilities → Allowed file types and confirm the file's extension is listed
  2. Add the extension if it matches the agent's documented purpose; otherwise the rejection is correct

Cause: File type blocked at the environment level (Control 1.25)

  1. Open PPAC → Environments → [Environment] → Settings → Product → Privacy + Security
  2. Check the blocked file extensions and blocked MIME types lists
  3. Per-agent allowlists cannot override environment-level blocks — this is intentional defense-in-depth

Cause: File exceeds Microsoft platform limits

  1. Confirm the file is within Microsoft Learn limits:
  2. User-uploaded file at runtime (individual file size): 15 MB (per Allow file input from users)
  3. User-uploaded text file at runtime (character limit, without code interpreter): 30,000 characters per file
  4. Maker-uploaded knowledge file: up to 512 MB (per Copilot Studio quotas and limits)
  5. Reduce file size or split the document if it exceeds the limit

Cause: Defender for Cloud Apps quarantined the file (Zone 3)

  1. Open Microsoft Defender XDR → Cloud apps → Files and search for the file name
  2. If quarantined, verify the magic-byte inspection rule is intentional; if a false positive, refine the file policy
  3. Restore the file only after verifying it is not a renamed executable

Symptom: Sensitivity Labels Not Displayed in Agent Responses for Uploaded Knowledge Files

Cause: Source or response path is not supported by the label-display feature

  1. Check the current sensitivity-label response documentation for the supported source and agent configuration.
  2. Verify the label on content in that supported source and confirm the response actually cites it. A runtime attachment or Dataverse-stored upload is not proof of supported label propagation.
  3. Do not create a Purview auto-labeling policy with an assumed Dataverse location. Test labeling in a supported repository separately from the response shield.

Cause: Source content is unlabeled or is not cited

  1. Inspect the source item's current sensitivity label and the response citations.
  2. Confirm the source is available to the test user and agent through the documented supported knowledge path.
  3. Retest with labeled synthetic content in that path; record an unsupported upload path as a coverage gap rather than an inherited agent label.

Cause: Sensitivity labels not published to relevant users

  1. Open Microsoft Purview → Information Protection → Label policies
  2. Confirm the labels are published to the user(s) uploading the files
  3. Users without label policies will upload unlabeled files even when labels exist in the tenant

Evidence path: Source-item label evidence plus the Copilot Studio response and its citations; inspect label publication separately in Microsoft Purview.

Note (preview feature): Sensitivity label display in agent responses is a preview feature per Microsoft Learn. The documented behaviour is a per-response shield displaying the highest label of cited content — not an agent-level inherited property. Verify current GA status at View sensitivity labels in agent responses before relying on this for Regulated-zone attestation.

Symptom: DLP Policy Not Triggering on Uploaded Content

Cause: Wrong enforcement plane or unsupported upload path

  1. Identify the actual workload and policy. Power Platform data policies govern connectors and supported agent capabilities; they are not a universal Purview SIT scanner for runtime files.
  2. For a supported Purview repository/workload, verify that policy's location, conditions, enforcement mode, and configured alert behavior.
  3. Test that repository separately from the agent's direct-upload path. If the latter has no documented content-inspection control, retain the default-deny upload decision or obtain an approved compensating control; do not mark the gap as passing.

Cause: Sensitive Information Type (SIT) does not match the test data

  1. The test file must contain content matching the SIT's regex and supporting evidence (e.g., US SSN SIT requires keyword proximity)
  2. Use a synthetic test file built from the Microsoft documented test patterns — never use real PII

Cause: Reporting latency

  1. Record the workload-specific telemetry source, test marker, UTC action time, and a firm-defined observation deadline.
  2. Search the complete retained window and preserve query errors. Before the deadline, missing evidence is pending; at the deadline, unresolved evidence fails the test and requires escalation.
  3. A Sentinel mirror may be queried if configured, but is not assumed faster or a substitute for proving enforcement on the actual upload path.

Symptom: Dataverse Storage Access Not Restricted or Retention Missing

Cause: Default environment permissions retained

  1. Open PPAC → Environments → [Environment] → Settings → Users + permissions → Security roles
  2. Review Dataverse security roles; remove any overly broad role assignments (e.g., "Basic User" with Organization-level read on knowledge tables)
  3. Restrict access to required service principals and named admin security roles

Cause: No Purview retention policy covers the Dataverse location

  1. Open Microsoft Purview → Data Lifecycle Management → Retention policies
  2. Add the Dataverse environment location to a retention policy that meets your record-keeping obligation (FINRA 4511: 6 years; SEC 17a-4(f): typically 6 years with WORM characteristics)
  3. Enable retention lock if SEC 17a-4(f) WORM equivalence is required

Cause: Dataverse auditing not enabled

  1. Open PPAC → Environments → [Environment] → Settings → Auditing and confirm auditing is enabled
  2. Confirm Microsoft Purview Audit (Standard or Premium) is enabled at the tenant level
  3. Generate a known supported audit event and query Purview → Audit → Search for its actual operation/time/user. Core-service records typically take 60–90 minutes, with no guaranteed maximum; an upload need not emit the assumed event. See audit search.

Symptom: Inventory Script Returns Incomplete or Empty Results

Cause: Script run on PowerShell 7 (Core) instead of Windows PowerShell 5.1 (Desktop)

  1. Microsoft.PowerApps.Administration.PowerShell is Desktop edition only
  2. Re-run from Windows PowerShell 5.1; the baseline guard will throw if Desktop edition is missing

Cause: Insufficient role

  1. Confirm the running account holds Power Platform Admin or AI Administrator at minimum
  2. Run Get-AdminPowerAppEnvironment | Measure-Object as a smoke test

Cause: Module out of date

Get-Module -Name Microsoft.PowerApps.Administration.PowerShell -ListAvailable
# If outdated, pin to a CAB-approved version per the PowerShell baseline §1
Install-Module -Name Microsoft.PowerApps.Administration.PowerShell `
    -RequiredVersion '<cab-approved-version>' -Scope CurrentUser -AllowClobber -AcceptLicense

Symptom: Set-AdminPowerAppChatbot -FileUploadEnabled Rejected

Cause: Module version does not expose the parameter

  1. Run Script 0 — Probe Cmdlet Surface from the PowerShell Setup playbook
  2. If FileUploadParamPresent = False, your module version does not expose the schema this control depends on
  3. Resolution paths (in order of preference): a. Upgrade the module to a CAB-approved version that includes -FileUploadEnabled b. Use the Portal Walkthrough for manual configuration c. Open a Microsoft Support case to confirm parameter availability for your tenant tier

Cause: API call returns 403 Forbidden

  1. Confirm the running account holds AI Administrator or Power Platform Admin
  2. Confirm the agent is in an environment the running account can administer
  3. Some Dataverse-backed environments require Dataverse-side role assignment in addition to platform role — see PowerShell Authoring Baseline §5

Escalation Path

  1. Copilot Studio Agent Author — per-agent toggle, allowed-types list, agent publishing
  2. AI Administrator — per-agent governance policy enforcement, allowlist standards, approval review
  3. Power Platform Admin — environment settings, Dataverse access, DLP scope, feature flags
  4. Purview Compliance Admin — DLP policy authoring, retention policy, sensitivity-label policy
  5. Purview Info Protection Admin — auto-labeling policy scope and label publication
  6. SOC Analyst — Defender XDR alerts, Sentinel queries, anomalous upload investigation
  7. Microsoft Support — platform-level issues with file upload features, Dataverse storage, Defender for Cloud Apps file policies

Known Limitations

Limitation Impact Mitigation
Maker-uploaded knowledge files with encryption (sensitivity labels or password protection) are not supported Files marked Confidential/Highly Confidential or password-protected appear "Ready" but silently fail to serve knowledge responses (per Microsoft Learn) Apply labels below the encrypted threshold; use unencrypted test files for knowledge upload testing; audit knowledge source files for encrypted content before upload
File Upload toggle is per-agent (no bulk UI) Each agent must be configured individually in the portal Use the PowerShell mutation script (Script 3) for bulk operations
Microsoft platform file size limits cannot be lowered per agent in the portal Maker-uploaded knowledge files can be up to 512 MB Validate an actual supported enforcement point; a legacy connected-app file policy is not a universal per-agent upload-size control.
Dataverse environment settings are largely tenant-managed Environment-level fine-grained access requires Dataverse security role configuration Apply retention and access policies at the Purview / PPAC tier
Response-level label display is not agent-level inheritance The shield reflects the highest label among content cited in that response; it does not label the agent Verify supported source-file labeling and the actual response shield; do not infer agent-level protection
Toggle changes may require agent republish Settings may not take effect until republish completes Republish the agent after every Security setting change
Propagation delay up to 15 minutes Recent toggle changes may not be enforced immediately Wait 15 minutes before declaring a regression
Defender for Cloud Apps file policies are near-real-time, not synchronous Files may be briefly accessible before quarantine completes Pair with PPAC environment-level blocks (Control 1.25) for fail-fast at the edge
Agent activity log column names vary by Sentinel connector version KQL queries may need column adjustments Verify schema against the connector version deployed in your tenant

Diagnostic Commands

Check Agent File Upload Status (Single Environment)

Get-AdminPowerAppChatbot -EnvironmentName "<environment-guid>" |
    Select-Object @{N='Agent';E={$_.Properties.DisplayName}},
                  @{N='FileUpload';E={$_.Properties.FileUploadEnabled}},
                  @{N='LastModifiedUtc';E={$_.Properties.LastModifiedTime}} |
    Format-Table -AutoSize

Verify Module Installation and Version

Get-Module -Name Microsoft.PowerApps.Administration.PowerShell -ListAvailable |
    Format-Table Name, Version, Path

List All Environments Visible to Current Identity

Get-AdminPowerAppEnvironment | Format-Table DisplayName, EnvironmentName, EnvironmentType

Confirm Authentication and Role Access

# A non-zero count confirms authentication landed in the right cloud
Get-AdminPowerAppEnvironment | Measure-Object

Back to Control 1.26 | Portal Walkthrough | PowerShell Setup | Verification & Testing

Updated: June 2026 | Version: v1.6.2 | UI Verification Status: Current