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Cannot use MCP servers nor any model #1976

@jaroslaw-buryk-lgs

Description

@jaroslaw-buryk-lgs

Describe the bug

When I start Copilot CLI I have now erro messages:
! Third-party MCP servers are disabled by your organization's Copilot policy. Only built-in servers are available.

● Environment loaded: 3 custom instructions, 8 skills, 1 agent

✗ Failed to load models: access denied by Copilot policy. (Request ID: F4F1:2FC301:2563100:2A51221:69B13740)

Check your Copilot CLI policy setting: https://github.com/settings/copilot

Copilot CLI is enabled in my organization (and was working before)
In VSCode I can use both MCPserver and premium models andI'm logged in in the same account
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Affected version

1.0.3

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area:mcpMCP server configuration, discovery, connectivity, OAuth, policy, and registryarea:modelsModel selection, availability, switching, rate limits, and model-specific behavior

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