The Microsoft 365 outage impacted services such as Microsoft Defender, Intune, Teams, PowerBI, Fabric, OneNote, OneDrive for Business, SharePoint Online, Windows 365, Viva Engage, Microsoft Purview, and the Microsoft 365 admin center. Xbox Support also confirmed that the issue affected the Xbox Live service, saying gamers had problems logging into their accounts. For Windows 365 Cloud PCs, Microsoft recommends restarting the affected VMs via the Azure Portal. This troubleshooting step proved effective for some Windows admins when trying to recover from these reboot loops, according to Microsoft. Alternatively, customers can restore from an Azure Backup before 19:00 UTC on July 18th, with the risk of possibly losing data created after the backup. Should Microsoft 365 be operated in offline mode unless online mode is really necessary ?

