A few days ago, Microsoft released a fix for a major Outlook bug. This bug will prevent a user from forwarding, categorizing or flagging a message in their Outlook mailbox when operating in online mode causing an “operation failed”. Microsoft notes that the problem occurs when a message is marked as a “record” from within a retention policy or file plan. It says:
When you access a mailbox in online mode and try to forward, categorize, or flag a message, you may see an “operation failed” error. This can be a problem if the message is assigned a label from a retention policy or file plan that is configured to mark items as records. In this case, Outlook will fail to perform operations and display an error message.
Microsoft has also provided guidance for administrators to confirm this issue. It explains:
To ensure that the problem is caused by a record, administrators can run a network trace when reproducing the problem. This should result in the following exception being received from the server:
Microsoft.Exchange.Data.StoreObjects.StoragePermanentException: Cannot move record label on item to archive mailbox and update message metadata
From Microsoft Purview PortalAdministrators can also check whether the retention policy applied to the message is configured to mark items as records.
Please note that this issue may not be seen for all messages marked as records.
Finally, some functions are provided, and they are quite basic. Microsoft recommends that users change their account settings to cached mode, or use Outlook on the web instead of the desktop. Another method is to disable the reading pane and forward the mail without opening or previewing it.
As a workaround, users have the option to change their account settings to use cached mode or use Outlook on the web.
Additionally, users can also close the reading pane and forward the message without opening or previewing it.
You can get more details on Microsoft support article about this problem.