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Microsoft is facing a major outage affecting its 365 services, including Outlook and Copilot, with ongoing issues since Thursday night. The company acknowledged that initial fixes did not meet expectations and is exploring alternative solutions. The outage is primarily due to unexpected server unavailability, leading to overloads in the infrastructure. Microsoft has assured clients that resolving the incident is a top priority, while also stating there is no evidence of malicious activity behind the outage.