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Small and medium business | Business Central, N...
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Copilot Studio MCP Connection Issue – Unable to Load Tools (OData Error)

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Posted on by 26

Hi everyone,

I am trying to build an agent in Copilot Studio using the Business Central MCP server, but I am unable to connect to the MCP tools. Whenever I try to load or refresh the tools, I receive an OData-related connection error.

What is confusing is that I have successfully created and used MCP-based agents multiple times in the past without any issues. However, this problem has been occurring consistently for the last two weeks.

Things I have already tried:

 

  • Creating a new Copilot Studio agent
  • Creating a new MCP configuration in Business Central
  • Deleting and recreating the MCP connection in Copilot Studio
  • Clearing browser cache and cookies

I also tested creating a tool without MCP using Find Records (V3), and that works perfectly. The agent is able to connect to Business Central and retrieve data without any issues. The problem only seems to occur when using MCP tools.

Despite these steps, I am still unable to retrieve the MCP tools.

Has there been any recent change to how MCP connections are configured or authenticated between Business Central and Copilot Studio? Is anyone else experiencing the same issue?

This is the error

I have the same question (0)
  • Suggested answer
    YUN ZHU Profile Picture
    102,713 Super User 2026 Season 2 on at

    Hi, this issue appears to be related to the known issue below; hopefully, this provides you with some hints.

    https://admin.powerplatform.microsoft.com/support/knownissues/6511116

     

    Thanks

    ZHU

  • Suggested answer
    OussamaSabbouh Profile Picture
    18,635 Super User 2026 Season 2 on at

    Hello,

    This looks like a Copilot Studio MCP authentication/connector issue, not a Business Central permission or API issue—especially because Find Records (V3) works and the error occurs before tools are retrieved. Use the built-in Dynamics 365 Business Central MCP Server (Preview) tool only, delete the existing MCP connection from Power Apps > Connections (not only from the agent), recreate it, select the environment and company from the dropdowns, and initially leave MCP Server Configuration blank; do not manually provide an Authorization header or Entra app because Copilot Studio uses Microsoft’s preregistered application. Even with no configuration or with Dynamic Tool Mode, three system tools should appear, so “No tools available” is not expected. I could not find an officially announced recent authentication change or known issue matching this exception; if the same error occurs with a blank configuration and in another Power Platform environment, it is most likely a Microsoft-side regression. Raise a Copilot Studio support ticket with the complete JSON error, tenant and environment IDs, Business Central version, timestamp, and correlation/request ID from the connection details.

    Regards,
    Oussama Sabbouh

  • Suggested answer
    Grigorios Mavrogeorgis Profile Picture
    3,007 Super User 2026 Season 2 on at

    Hi Riya, first press View details on that red banner. The message itself tells you nothing, but the details normally give you the real HTTP code and a correlation ID, and that is what shows if it's auth or the endpoint.

    Then check the MCP side in BC, search MCP in Tell Me. Two things matter - the server has to be enabled on that environment, and the configuration your connector points to must still exist and still have API pages inside it. An empty or disabled config gives you exactly this, no tools. Find Records V3 working proves nothing here, it goes through the normal API endpoint, different path completely.

    It's still preview so updates move things around. We had a config come back empty after an environment update.

     

    Glad to help - follow up if anything is unclear.   

    ►  If this solved it, marking it verified helps others too.       

    Regards,
    Grigorios Mavrogeorgis
    Business Central Consultant & AL Developer

    Work: Gmsoft Limited
    Blog:  insidebusinesscentral
    LinkedIn: linkedin.com/in/gregorymavrogeorgis

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#1
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OussamaSabbouh 540 Super User 2026 Season 2

#2
YUN ZHU Profile Picture

YUN ZHU 451 Super User 2026 Season 2

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Grigorios Mavrogeorgis Profile Picture

Grigorios Mavrogeorgis 346 Super User 2026 Season 2

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