Hi, first thing I would check is the Inputs on the tool, not the connection itself. Environment and Company have to be selected there, if they stay empty the call goes to a path that doesn't resolve and you get exactly this notFound on initialize. Same thing if the MCP Server Configuration name you typed doesn't match the one in BC.
Then in BC search Model Context Protocol (MCP) Server Configurations in Tell Me, page 8351 as far as I remember. The configuration must be Active and have tools added under Available Tools, otherwise nothing comes back to Copilot Studio. And don't panic if you only see bc_actions_search, bc_actions_describe and bc_actions_invoke — with dynamic tool mode that is expected, the API page tools resolve at runtime, they're not listed in the designer.
The ODataAuthorizationAlreadyProvided one I seen when the connection is stale. Delete the connection completely and create a new one, then hit the refresh icon on the Tools tab.
Glad to help - follow up if anything is unclear.
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Regards,
Grigorios Mavrogeorgis
Business Central Consultant & AL Developer
Work: Gmsoft Limited
Blog: insidebusinesscentral
LinkedIn: linkedin.com/in/gregorymavrogeorgis