Microsoft released an announcement a few days ago, acknowledging that Outlook users may experience “operation failure” errors when forwarding, sorting and tagging emails, and announced a temporary fix solution.
The full official Microsoft changelog.
Problem
When accessing a mailbox in online mode and attempting to forward sort, or tag messages, you may see the error “Operation Failed”. This issue may occur if the message has been assigned a label from a retention policy or file plan that is configured to mark the item as a record. In this case, Outlook will not be able to perform these actions and will display an error message.
Troubleshooting
To ensure that the problem is caused by logging, administrators can run a network trace when reproducing the problem. This causes the following exceptions to be received from the server.
Microsoft.Exchange.Data.StoreObjects.StoragePermanentException: The record label on the item could not be moved to the archive mailbox and the mail metadata could not be updated
In the Microsoft Purview portal, administrators can also check that the retention policy applied to the mail is configured to tag items as records.
Keep in mind that this issue may not be observed for all messages marked as records.
Status: Temporarily avoided
The workaround is that users can choose to switch their account settings to use cached mode or use Outlook Web Edition.
In addition, users can close the Reading Pane and forward messages without opening or previewing them.
