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Your calendar couldn't be checked to see whether this event conflicts with other events.
We've been using Office 365 for about two years, and we've had a few rooms setup as resources this entire time. The Administrative Assistant schedules the rooms and it's worked well for us. Lately...
Bit late but for others who find this page, I resolved this with the following powershell command:
Set-CalendarProcessing MeetingRoomName -ProcessExternalMeetingMessages $True
Mr Mooney, thank you for taking the time to come back with this response. resolved our issues even though the room mailbox was set to process emails automatically.