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License & Subscription Issues

How to Fix Microsoft Loop License Popup for Microsoft 365 E3 Users

Muhammad TalhaMuhammad Talha Oct 10, 2026 868 views

Question details

Users with an active Microsoft 365 E3 license are repeatedly interrupted by a warning popup stating that a different plan is required to create workspaces or add members.

How to Fix the Microsoft Loop License Popup for Microsoft 365 E3 Users
Product
Microsoft Loop
Device & OS
not provided
Scenario
Creating new workspaces or attempting to add members to an existing Microsoft Loop workspace.
Observed behavior
A license error popup is continuously displayed, preventing the user from creating workspaces or adding members, even though their E3 subscription should grant them entitlement.
Before you start

Ensure you have access to the Microsoft 365 Admin Center or know who your IT administrator is, as resolving this licensing issue typically requires administrative privileges.

Solution 1Recommended

Assign the Microsoft 365 Extra Features License

Activating the specific 'Extra Features' license for Loop within the Microsoft 365 Admin Center is the most effective way to clear the erroneous popup.

Microsoft Loop entitlements are sometimes unbundled from the main E3 license toggles. Checking the 'Extra Features' or specific Loop app license ensures the backend recognizes your workspace creation rights.

1
Sign in to Admin Center

Navigate to the Microsoft 365 Admin Center and log in with your global or billing administrator credentials.

2
Navigate to Active Users

From the left-hand menu, click on 'Users', then select 'Active users'.

3
Select the Affected User

Find and click on the name of the user experiencing the Loop license popup to open their properties panel.

4
Modify Licenses and Apps

Go to the 'Licenses and apps' tab. Scroll down to the 'Apps' section and check the box for 'Microsoft 365 Extra Features' or 'Microsoft Loop'.

5
Save Changes

Click 'Save changes'. It may take up to 24 hours for the new licensing state to fully propagate through the system.

Assign the Microsoft 365 Extra Features License
Re-authentication required: After the administrator has saved these changes, the user must completely sign out of Microsoft Loop and sign back in for the changes to take effect.
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Frequently Asked Questions

Does a Microsoft 365 E3 license include access to Microsoft Loop workspaces?

Yes, Microsoft 365 E3 licenses include core access to Microsoft Loop, which allows users to create workspaces and add members. However, IT administrators may need to explicitly enable the app or assign the 'Extra Features' license in the admin portal.

Why am I receiving a subscription warning if my company already pays for an E3 plan?

This warning typically occurs due to a synchronization delay or because the specific app-level license (such as Microsoft 365 Extra Features) hasn't been checked in your user profile by your IT department.

Can external guests be added to Microsoft Loop workspaces without a license?

Guest access in Microsoft Loop depends on your organization's sharing policies. However, the person creating the workspace and initiating the sharing must have an active, properly assigned Microsoft 365 commercial license.

How long does it take for the Microsoft Loop license changes to take effect?

After an administrator assigns the necessary Extra Features license in the Microsoft 365 Admin Center, it can take anywhere from a few minutes up to 24 hours for the changes to fully propagate to the Loop application.