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Unable to Update BusinessCopilotAI – Package Not Compatible with Environment

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Posted on by BluFin.S

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Hello,

In my Dynamics 365 Sales Enterprise (sandbox environment), I see that an update is available for the BusinessCopilotAI component (see screenshot 1).

However, when I attempt to install the update, I receive the following message (screenshot 2):

"The app can’t be installed because the related packages are not compatible with this environment."

Microsoft Dynamics 365

2025 Release Wave 2 enabled

App name: Sales Hub

Organization name: D365_Sales-Sandbox

Channel: Monthly – August 2025 (app)

SANDBOX

Server version: 9.2.25081.00168

Client version: 1.4.10703-2508.1

Session ID: 9e5cb496-ea77-4da6-9180-79a6fd1c1b02

Time: 8/13/2025 12:41:21 AM GMT+0200 (Central European Summer Time)

Has anyone encountered this issue before? Is there a known fix or a prerequisite configuration needed for this update to be compatible with the environment?

Thank you in advance for any guidance.

Categories:

Dynamics 365 Sales

Screenshot_1.png

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Daniyal Khaleel 752 Most Valuable Professional on at

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1-If your environment is Dataverse-only, or was not created with the Dynamics 365 apps enabled option, certain first-party apps—including Copilot components won’t install properly. This is a common root cause for compatibility errors

Action:
Go to the Power Platform admin center → navigate to Environments → open your environment → under Settings > Overview, verify if “Enable Dynamics 365 apps” is active and that a database is present. If not, despite 2-being a sandbox, this environment may not support Sales app updates properly.

Certain Copilot features rely on specific underlying packages, lounge services, or licensing. If those dependencies are missing or you're not licensed correctly, the system may reject updates

Action:

Confirm that all dependencies for BusinessCopilotAI are installed.

Check your licensing to ensure it's appropriate for Sales Enterprise and Copilot features.

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BluFin.S 108 on at

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@Daniyal

Thank you but its not clear where "Settings > Overview" is since i see this in my environment, please attach screens from your side.

Also this new component has popped out after wave 2 release

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DAnny3211 11,397 on at

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Hi Stefan 👋

Thanks for your question!

The error message you're seeing—“The app can't be installed because the related packages are not compatible with this environment”—typically indicates a mismatch between the BusinessCopilotAI package requirements and your current environment configuration in Dynamics 365 Sales Enterprise.

✅ Here’s what you can check and try:

Verify Environment Compatibility

Ensure your sandbox environment meets all prerequisites for the BusinessCopilotAI update, including:

Correct release wave (you mentioned 2025 Wave 2 is enabled—good ✅).

Supported channel (Monthly channel is usually fine, but confirm with Microsoft documentation).

Required Dataverse version and Sales Hub app version.

Check Dependencies and Installed Packages

Go to Power Platform Admin Center > Resources > Dynamics 365 Apps.

Look for any missing or outdated dependencies that BusinessCopilotAI might rely on.

Review Microsoft Documentation

Check the official release notes or documentation for BusinessCopilotAI to confirm:

Supported environments and versions.

Required licenses or feature flags.

Try Installing in a New Sandbox

If possible, create a fresh sandbox environment and attempt the installation there.

This can help isolate whether the issue is environment-specific.

Contact Microsoft Support

Since this involves a first-party app and compatibility issue, Microsoft Support can confirm whether the update is blocked due to a backend configuration or rollout delay.

💡 This issue may be temporary if the update is being rolled out in phases or if your environment is missing a hidden prerequisite.

Hope this helps!
✅ Please mark this reply as helpful if it answered your question.
Best regards! 👋

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