Member cannot create new private-channel in teams

Hello,

If members cannot create private channels in Microsoft Teams despite having the appropriate permissions configured, the issue could be due to several potential factors.

• Even though you have enabled "Allow members to create private channels" globally in the Microsoft 365 admin center, this setting must also be enabled at the specific team level.
• Steps to check:
  1. Go to Microsoft Teams.
  2. Navigate to the team where members face issues.
  3. Click the ellipsis (...) next to the team name and select Manage team.
  4. Under the Settings tab, check Member permissions and ensure the option to allow members to create private channels is enabled.

• Only team members (not guests) can create private channels if permissions allow.
• Verify that the affected users are not assigned the Guest role:
  1. In Microsoft Teams, go to the team.
  2. Click on Manage team.
  3. Check the "Role" column for the affected users.

• Microsoft Teams has a limit of 30 private channels per team (including deleted ones). If this limit is reached, no new private channels can be created.
• Steps to check:
  1. In Microsoft Teams, open the team where the issue occurs.
  2. Count the number of private channels under the team.
  3. If the limit is reached, consider removing unused private channels.

• Ensure that no sensitivity labels or compliance policies are blocking the creation of private channels.
• If your organization has implemented sensitivity labels for Teams, ensure they allow private channel creation:
  1. Go to the Microsoft 365 admin center.
  2. Navigate to Compliance > Information Protection > Labels.
  3. Check the label applied to the team and review its settings for restrictions.

• Confirm that the Teams Channel Policy assigned to users permits private channel creation.
• Steps to check:
  1. In the Microsoft Teams admin center, navigate to Teams > Teams policies.
  2. Verify the policy assigned to the affected users.
  3. Check the setting Private channel creation and ensure it is set to Allowed

• Check if there are ongoing Microsoft Teams outages or issues:
  • Visit the Microsoft 365 Service Health page.
  • Look for any reports related to Microsoft Teams.

• Sometimes, issues occur due to outdated clients or corrupted cache. Try the following:
  1. Update the Teams app to the latest version.
  2. Clear the Teams cache:
     • Exit Microsoft Teams.
     • Delete the contents of the following folder:
       • Windows: %appdata%\Microsoft\Teams
       • macOS: ~/Library/Application Support/Microsoft/Teams
  3. Restart Teams and test again.

If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment"