Teams Annotation – “Interact with background content” option not available

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Hi Community,

We are troubleshooting an issue where the “Interact with background content” option is not available while using annotations in Microsoft Teams.

The affected users are able to:

• Join and host Teams meetings normally.
• Share their entire screen.
• Start Annotations successfully.
• Use the standard annotation tools.

However, when the presenter starts annotation while sharing their own screen, the “Interact with background content” option does not appear.

The users are assigned a custom Teams Meeting Policy, so we are trying to determine whether a meeting policy setting could be limiting this functionality.

Has anyone encountered this scenario?

Specifically, we would like to understand:

1. Is “Interact with background content” controlled by any Teams Meeting Policy setting?
2. Are there any dependencies on Microsoft Whiteboard, app policies, meeting policies, licensing, or tenant-level settings?
3. Is the feature dependent on a particular Teams desktop client version or update channel?
4. Are there any PowerShell policy parameters we should check?
5. What would be the recommended way to determine whether this is a policy issue, tenant configuration issue, or Teams client issue?

We are planning to compare the affected custom meeting policy against the Global (Org-wide default) policy and also test the affected user with the Global policy to help isolate the issue.

Any guidance or experience with this behavior would be appreciated.

Thanks!