Creating restricted channels within a team for confidential discussions or projects
Hi Katie,
Thank you for providing the details of the issue and the troubleshooting steps you've already performed.
I'm aware of a currently ongoing Microsoft 365 service incident (MO1550821). According to Microsoft's service health advisory, this incident may affect multiple services, including Microsoft Teams and SharePoint Online.
Since Private Channel creation involves both Teams and SharePoint Online services, this incident could potentially be related to the issue you're experiencing.
In the meantime, could you confirm whether other Team Owners in your organization are experiencing the same issue?
If so, and you are an admin, you can review Microsoft's service health advisory directly through the Microsoft 365 Admin center. If you're an end user without admin permissions, kindly reach out to your Microsoft 365 administrator and ask them to monitor this incident and keep you informed of any relevant updates.
I hope the issue will be resolved soon.
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