After some additional investigation, I found documentation that may explain the behavior.
The agent is configured with File** processing **capabilities enabled. The official documentation for file uploads and image/file analysis states that uploaded files used during conversations are subject to file processing limits. The configuration page explicitly states:
"Uploads are limited to 15 MB."
Documentation: Analyze images and files in Microsoft Copilot Studio
In my environment, the agent returns the following error:
"The maximum file size for images is 16 MB and for text files is 16 MB. Error code: FileValidationError."
The 15 MB limit shown in the agent configuration is very close to the 16 MB validation error returned by the runtime, which suggests the failure is likely occurring within the file-processing capability used by the chat experience rather than in the underlying knowledge source or storage layer. [learn.microsoft.com]
It's also worth noting that other Copilot Studio documentation references larger limits (for example, 512 MB for certain file upload/knowledge scenarios), which may refer to a different upload path than conversational file processing.
Based on these findings, the observed behavior appears consistent with the file processing feature limit rather than a SharePoint, OneDrive, or Teams file storage limit.
Could Microsoft confirm whether the 15 MB file-processing limit documented in Copilot Studio is the expected limit for files uploaded to agents through Microsoft Teams and Microsoft 365 Copilot Chat?