A group of Microsoft Products and technologies used for sharing and managing content, knowledge, and applications.
Hi @Khan, Ayan,
From what I can see, this behavior is most likely related to how the SharePoint link is being added, rather than an actual removal of folder support.
Currently, in the Microsoft 365 Copilot Agent Builder experience, SharePoint content can still be added as files, folders, or entire sites. However, when using a URL, it needs to follow Microsoft’s expected format. In particular, the link should be a clean SharePoint path (typically within two levels) and should not include any query parameters. In other words, while both URL-based and browse-based options are supported, the format of the URL plays a key role in whether it’s accepted.
In many cases, this issue happens because the link copied from the Documents library is actually a browser-style URL (for example, something like Forms/AllItems.aspx or a link containing parameters such as ?id= or ?web=). As a result, Agent Builder may not interpret it as a direct folder path. Consequently, the system may either reject the folder or fall back to a broader SharePoint scope instead.
To address this, I would suggest the following approaches:
1/ Use a direct folder path instead of the browser URL:
Rather than copying the link from the Documents view, try using "Copy direct link" or checking the folder’s Details > Path. This ensures the URL points directly to the folder itself, not to the library page wrapper.
2/ Prefer the Browse option where possible:
Even better, you can use Browse / Attach cloud files and select the folder directly. This method is generally more reliable, and it aligns with Microsoft’s guidance that SharePoint and OneDrive folders can be added via the browse experience.
3/ Check the source restriction setting:
If your intention is to limit the agent to a specific folder, make sure "Only use specified sources" is enabled. From your screenshots, it seems the second configuration is using a broader scope (e.g., "My SharePoint files, folders, and sites"), which would explain why the folder-level restriction is no longer applied.
Additionally, if you’re working in Copilot Studio instead of Agent Builder, it’s worth noting that there are two different SharePoint integration paths: one for full knowledge sources, and another within the file upload area that supports adding specific files or folders with sync capabilities.
For more information, you can see:
- Add knowledge sources to your declarative agent in Microsoft 365 Copilot
- Add knowledge sources to your declarative agent
- Add SharePoint as a knowledge source
Finally, if you’ve already tried using a clean direct folder path and the issue still persists, then it’s possible this is due to a recent UI change or regression. In that case, I would recommend raising a Microsoft support ticket and including:
- the exact URL format you’re testing,
- whether it works when using the Browse method, and
- the screenshots you’ve already shared.
This will help confirm whether the behavior is expected or service-related.
I hope this helps clarify things and gives you a few options to try. Please feel free to share an update on how it goes. I’d be happy to continue supporting you.
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