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Copilot in Excel Issues

How to Fix Microsoft 365 Copilot Cannot Create a New Excel Workbook

Guest WriterGuest Writer Sep 27, 2026 869 views

Question details

Users are encountering an error where Microsoft 365 Copilot is unable to generate a new blank Excel workbook from its interface.

How to Fix Microsoft 365 Copilot Cannot Create a New Excel Workbook
Product
Microsoft 365 Copilot / Microsoft Excel
Device & OS
not provided
Scenario
Attempting to create a new Excel spreadsheet directly using the Microsoft 365 Copilot app or launcher.
Observed behavior
Copilot displays an invalid file format or file extension error (often referencing a corrupted file), despite the standalone Excel application opening and functioning normally.
Before you start

Verify your current Microsoft 365 Copilot version in the application settings, as this is a known bug in specific builds. Ensure your standalone Excel application is updated and functioning correctly before proceeding with workarounds.

Solution 1Recommended

Create the Workbook Directly in Excel

Bypass the Copilot app launcher by creating your workbook manually in Excel, which avoids the file generation bug.

This error is a known issue frequently occurring in Microsoft 365 Copilot versions 18.2502.1041.0 and 18.2501.1284.0. Because the issue persists across multiple computers and resetting the app does not resolve it, utilizing Excel directly is the most reliable workaround until Microsoft releases a patch.

1
Launch Excel Manually

Open the Microsoft Excel application directly from your Windows Start Menu, macOS Launchpad, or desktop shortcut instead of using the Copilot launcher.

2
Create a Blank Workbook

Click on 'Blank workbook' on the Excel home screen to generate a new spreadsheet without encountering the file format error.

3
Activate Copilot Within Excel

Once your new workbook is open, navigate to the 'Home' tab on the Excel ribbon and click the 'Copilot' icon to open the AI assistant pane.

4
Report the Bug

Return to the Microsoft 365 Copilot interface, click the 'Feedback' or 'Help' icon, and report the 'invalid file format' error to Microsoft to help expedite a fix.

Create the Workbook Directly in Excel
Avoid App Reset: Troubleshooting steps like resetting or reinstalling the Copilot app generally do not fix this specific issue, as it is related to how certain Copilot builds communicate with Excel's file generation protocols.
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  1. 1. Download and Install: Visit the official WPS Office website to download and install the free suite on your device.
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Frequently Asked Questions

Why does Microsoft 365 Copilot say my new Excel file format is invalid?

This is a known bug in specific versions of the Copilot app (such as 18.2502.1041.0). The app attempts to generate a temporary file (often named 'Book 2.xlsx') but fails to format it correctly, resulting in an invalid file extension or corruption error.

Will reinstalling Microsoft 365 fix the Copilot workbook creation error?

No, because this issue has been replicated across multiple computers and accounts. Reinstalling or resetting the local application typically does not resolve it, as it requires a version update or patch directly from Microsoft.

How can I still use Copilot if the 'New Workbook' button is broken?

You can easily bypass this bug by opening your standalone Excel application manually, clicking 'Blank workbook', and then launching the Copilot assistant directly from the 'Home' tab on the Excel ribbon.