Last Updated: March 9, 2026
ISSUE
When using classic Outlook to create groups, the Create Group window opens and after you fill out the required information, you get a red error message: "Can't connect to the server" below the Name field.Â
Classic Outlook currently uses Exchange Web Services (EWS) for group integration. This issue can occur even if you have EWS enabled for your tenant. In this circumstance, when you go to create a group, the AD Graph call for ValidateUnifiedGroupProperties fails with this error:Â
An internal server error occurred. The operation failed. Both AAD and MSGraph clients are null or AAD Graph is disabled for this API.
STATUS: INVESTIGATING
The Outlook Team is working to release updated group functionality that uses REST APIs which will address this issue. We will update this topic as soon as we know the REST release specifics.
WORKAROUND
To work around the issue, create and edit groups using Outlook Web Access (OWA) or new Outlook.
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See Also
Fixes or workarounds for recent issues in classic Outlook for Windows
