Unable to save managed metadata in SharePoint Document library

[KshirsagarSapna]

We are using SharePoint Online site and able to edit managed metadata and other fields in Document library. However since last few days we were unable to save or change any managed metadata fields within a specific site collection on a SharePoint environment. We are not getting any error message or warning. The situation is as follows.

1. The user edited an item and changed a managed metadata field.
2. The user saved the changed item.

3. It show it's saved ,however it just disappear from edited column
4. No error message was generated and the managed metadata field was not changed.

[#2]

We have the same issue on 14 different tenants. This is becoming a major blocker for our customers.

[#3]

This is a known issue and is reported in the M365 admin center as follows:

Title: Users can't update metadata on documents with certain content type within the SharePoint Online document library

User impact: Users can't update metadata on documents with certain content type within the SharePoint Online document library.

Current status: Our additional investigation into the problem has determined that users are prevented from updating metadata on documents with certain content types within the SharePoint Online document library and we've updated the Title, User impact, and Scope of impact portions of this communication to reflect this change. Our reproduction review has isolated a failure associated with the promotion and demotion of document library properties. We're further analyzing this failure along with recent service updates to isolate the source for this event and to determine our next steps for remediating the impact.

Scope of impact: Your organization is affected by this event, and all users are unable to update metadata on documents with certain content types within the SharePoint Online document library.

Next update by: Tuesday, October 31, 2023 at 2:00 PM PDT