Error FYI-2118 "Unable to share using Collaborate - Microsoft permissions limit reached."

Issue

When trying to share using New Collaborate, the following error message is displayed:

• Unable to share using Collaborate - Microsoft permissions limit reached.

Cause

This error occurs when the configured default Collaborate SharePoint site reaches the Microsoft-defined limit of 50,000 unique security scopes (permissions). This limit is set by Microsoft. Refer to the Microsoft article SharePoint limits.

Solution

To resolve the issue, we recommend working with your IT administrator to review the Microsoft 365 environment and SharePoint site configuration to reduce the number of unique permissions applied to the site. For example:

• Implement a Data Retention Policy for New Collaborate to automatically remove older documents after a selected period. This feature is available with Microsoft Business Premium licences and above.
• Review guest user access and remove users who no longer require access to the Collaborate site.
• Identify documents that are no longer required in Co-Edit with Client and finish co-editing where appropriate. Refer to Co-Editing a Document with a Client.
• Review any Microsoft Power Apps or other third-party configuration that may be creating additional unique permissions on the site.

We also recommend temporarily disabling any automation that uploads documents using Collaborate while your IT administrator investigates the issue. This can help reduce additional sharing failures.

Note: You can optionally configure a new default Collaborate SharePoint site. If you do this, users will need to be re-invited to the new site.