MC929022: Microsoft Loop Adds Policy to Require Existing Microsoft 365 Group for New Workspaces

📢 Official Microsoft Message Center Announcement

Updated May 11, 2026: We have updated the content. Thank you for your patience.

[Introduction]
A new organization-level Cloud Policy setting (OCPS) is available, allowing admins to block creation of tenant-owned Loop workspaces. When this setting is on, the “New workspace” ability in the Loop app will be unavailable. The only valid option for creating workspaces will be through standard channels in Teams, as these are connected to and managed by existing Microsoft 365 Groups. For more information about creating workspaces in Teams standard channels, visit Loop Workspaces in Teams Channels – Microsoft Support.

Admins will be able to ensure that new Loop workspaces are connected to and managed by an existing Microsoft 365 Group, similar to SharePoint Team sites.

This message is associated with Microsoft 365 Roadmap ID 422725

[When this will happen:]

General Availability (Worldwide): We will begin rolling out late April 2026 (previously early April) and expect to complete by early May 2026 (previously late April). 

[How this will affect your organization:]

Microsoft 365 Roadmap ID 422725 covers the capability to ensure that new Loop workspaces are connected to and managed by an existing Microsoft 365 Group, similar to SharePoint Team sites. Workspace creation must be initiated from the Loop app within standard Teams channels.

While this setting may align with existing governance processes, it’s important for admins to note that scenarios like automatic aggregation of Teams meeting content into a Loop workspace, or the creation of small, short-term project workspaces, will be more challenging for end-users unless they can skillfully select an existing M365 group during creation. Please consider this tradeoff in your adoption strategy.

If your organization has governance tools for SharePoint Communication sites that work effectively in a reactive manner (i.e., governance is applied after the site is created), Microsoft recommends extending this process to include Loop workspaces rather than using this policy.

[What you need to do to prepare:]

There is nothing you need to do to prepare. This capability will roll to your tenant automatically.

Source: Microsoft Message Center • Analysed by MWPro

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