Copilot Issue With Any File On A Cloud Platform

Connor 0 Reputation points
2026-09-10T18:01:48.1033333+00:00

A users is having issues with Copilot being available to use in excel. Other users are able to open the same file and have copilot available but this user has the error " This file type isn't supported for editing with copilot." The only way for the user to have copilot available to edit is to save it to OneDrive, the file is an xlsx file.

I have tried other machines with the same permissions, licenses and access and am not able to replicate the issue. He is only able to use Copilot in excel when saving the file in OneDrive.

Here is the error that the user receives below when trying to open any file on our shared drive:
copilot issues

Microsoft Copilot | Other
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  1. AI answer

    2026-09-10T18:02:11.9333333+00:00

    This behavior matches a file-location limitation more than a workbook-permission problem.

    For Excel co-authoring, shared-drive locations such as \\server\folder and smb://server/folder do not support the required cloud collaboration experience. Supported locations are OneDrive, OneDrive for Business, or SharePoint in Microsoft 365. That aligns with the fact that Copilot works for this user after the workbook is saved to OneDrive.

    Also verify these workbook conditions:

    1. Confirm the workbook is in a modern Excel format
      Copilot in Excel supports modern workbook formats such as .xlsx. If needed, open the file in Excel and save it again through File > Save As > Browse and choose Excel Workbook (.xlsx).
    2. Check whether the file is in an unsupported state
      If the workbook is stored in SharePoint and is checked out, Copilot in Excel can show an unsupported file-state error. Check the file back in, then close and reopen it. If the site requires check-out for editing, use Excel for the web for those files.
    3. Use a supported storage location
      Since the issue occurs on the shared drive and disappears in OneDrive, move or copy the workbook to OneDrive or SharePoint in Microsoft 365 and open it from there.
    4. If the file must stay on the shared drive
      That location is not supported for co-authoring. In that case, Copilot editing in the desktop app may not be available for that file path. A practical workaround is to use OneDrive/SharePoint or open the file in Excel for the web when applicable.

    The strongest indicator in this case is the storage path: the same .xlsx works once it is placed in OneDrive, while the shared drive does not.

    AI-generated content may be incorrect. Read our transparency notes for more information.

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