Confidential messages in Copilot Studio

I'd first separate two questions: did the user receive no answer, or did the user receive an answer that is hidden only in Monitor? A hidden transcript response doesn't by itself establish that the agent failed to answer.

Microsoft documents environment-level transcript viewing/recording controls, with environment-group rules taking precedence. For viewing transcripts in Power Apps, makers need the Bot Transcript Viewer role. Those are access controls; the documentation doesn't establish that granting that role will reveal a response specifically hidden as sensitive.

https://learn.microsoft.com/en-us/microsoft-copilot-studio/admin-transcript-controls

For the exact warning in your screenshot, I'd reproduce the issue with a non-sensitive test question and SharePoint sample, record the channel, agent harness, session ID and time, and ask Microsoft support whether this is expected redaction for that configuration. Keep real confidential content out of the public ticket discussion.

I wouldn't enable sensitive-data logging just to recover the missing text. Microsoft's sensitive-data guidance has specific channel/harness limits and warns that enabling sensitive logging exposes those values.

https://learn.microsoft.com/en-us/microsoft-copilot-studio/voice-sensitive-data