We have been automating the creation of MS Teams using PowerApp and Flow for the past few months. Users enter info in PowerApp, Flow does a few MS Graph API calls that clones an existing team and adds some permissions. Everything was working great.
Until this morning. The teams are being created, but the SharePoint libraries are not. If we look at the Team files tab, there is the message "We are setting up your file directory. Try refreshing the page after a few minutes or check back later." This message never resolves, and the team site is not created in SharePoint. All teams that have been created today exhibit this behavior.
However, if a team is manually created from Teams, everything works fine. It seems the issue is specific to teams created via MS Graph. Any team that I have created with MS Graph today has this problem. I can replicate by going to MS Graph and running the following: