Errors in source file retrieval from the knowledge base in copilot agents?

Hey mv2026​  - what you are expeienceing is expected behaviour. Copilot agents use semantic retrieval, not deterministic file or folder enumeration. Agents cannot reliably count files or restrict responses strictly to a sub‑folder, even when web content is disabled. Files mentioned from outside the folder likely matched the semantic intent and exist within the broader indexed knowledge base. Copilot agents created via the UI use Microsoft Search / Microsoft Graph–based indexing, not Azure AI Search. Azure AI Search is only used in custom RAG solutions built with Foundry or SDKs.

For validation, test with content‑specific questions rather than file counts or folder listings.