License & Subscription Issues

Cannot Create a Microsoft Loop Workspace with an E5 License

Rana Garcia Oct 9, 2026 870 views

Question details

Microsoft 365 E5 users are unable to create a new Microsoft Loop workspace despite having the correct subscription.

Fix the Inability to Create a Microsoft Loop Workspace on an E5 Plan

Product: Microsoft Loop
Device & OS: not provided
Scenario: Attempting to create a new workspace within the Microsoft Loop application.
Observed behavior: The plus button used to create a new workspace is disabled, and the system displays an error message stating that a different plan is required, even when Loop is fully enabled at the tenant level.

Before you start

Verify with your IT administrator that Microsoft Loop services are fully enabled at the tenant level in the Microsoft 365 admin center before proceeding with troubleshooting.

Solution 1Recommended

Submit a Service Request in the Microsoft 365 Admin Center

Since this is a known backend issue that can occur even with correct tenant settings, an administrator must contact the Microsoft 365 development team to investigate your specific tenant.

Microsoft has acknowledged that this behavior can be reproduced even when Loop services are correctly enabled at the tenant level for E5 licenses.

Because this requires a backend check by the development team, standard users cannot fix this locally. You must have your Microsoft 365 Global or Billing Administrator submit a formal service request.

Log into the Admin Center

Go to admin.microsoft.com and sign in using your Microsoft 365 administrator credentials.

Navigate to Help & Support

On the left-hand navigation menu, click on the 'Support' tab, and then select 'Help & support' from the dropdown menu.

Describe the Issue

In the search or issue description box, type 'Cannot create Loop workspace with E5 license' and review any automated diagnostics.

Create the Service Request

If the automated solutions do not resolve the issue, click the option to contact support. Provide details stating that Loop is enabled at the tenant level, users have E5 licenses, and the workspace creation button is disabled. Submit the ticket.

Submit a Service Request in the Microsoft 365 Admin Center

Wait for Microsoft Update: Microsoft's development team will need time to review your tenant's configuration and provide a backend update to restore workspace creation functionality.

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Frequently Asked Questions

Why does Microsoft Loop say I need a different plan when I already have Microsoft 365 E5?

This is a known provisioning bug on Microsoft's end where the workspace creation feature fails to recognize the E5 license correctly, even if your organization has Loop turned on. It requires Microsoft support to intervene.

Can I still use Loop components in Teams or Outlook if I cannot create a workspace?

Yes, in most cases, the inability to create a dedicated Loop workspace does not prevent you from generating and sharing individual Loop components (like tables or task lists) directly within Microsoft Teams chats or Outlook emails.

How can my admin verify if Microsoft Loop is enabled for our tenant?

Administrators can check this by going to the Microsoft 365 admin center, navigating to Settings > Org settings, and looking for 'Microsoft Loop' under the Services tab to ensure it is checked and applied.

Is there a workaround to create a workspace while waiting for support?

Currently, if the plus button is completely disabled for all E5 users in your tenant, there is no local workaround. You must wait for the Microsoft 365 development team to apply a fix to your tenant after a service request is filed.

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