Error executing prompt: Error: Managed sandbox policy changed during options update; retry the update #5360

Describe the bug

I am in enterprise environment.

copilot -p "Hi"
Error executing prompt: Error: Managed sandbox policy changed during options update; retry the update

2026-11-05T05:21:02.836Z [INFO] Shell completions: no writable completion directory found for zsh, skipping
2026-11-05T05:21:02.836Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:02.836Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy fetch skipped: no authenticated GitHub host available
2026-11-05T05:21:02.837Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:03.111Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.638Z [INFO] CAFE metrics are paused because no supported endpoint is available
2026-11-05T05:21:04.638Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.638Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.639Z [INFO] CAFE metrics endpoint became available
2026-11-05T05:21:04.641Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.527Z [WARNING] [rust:copilot_runtime::storage::managed_settings] permissions.model has an unsupported or malformed value and was ignored.
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy received from https://github.com: bypassDisabled=true, keys=[model,permissions,remoteControl,telemetry,sandbox]
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=server, bypassDisabled=true, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.532Z [INFO] Session indexing debug: SESSION_INDEXING=true, repository=undefined
2026-11-05T05:21:05.532Z [INFO] [rust:otel] OpenTelemetry configured from managed settings: exporter=otlp-http, source=github.copilot {"capture_identity":false,"capture_prompts":false,"capture_responses":false,"capture_tool_arguments":false,"capture_tool_output":false,"capture_policy_detail":false}
2026-11-05T05:21:05.560Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.560Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.580Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.582Z [WARNING] [rust:copilot_runtime::session::api_session_options_update] Failed to reload managed hooks after enabling managed settings {"error":"no hook session for session id ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e"}
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch starting for account (device)
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy fetch skipped: no authenticated GitHub host available
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.583Z [INFO] [rust:rt_tgrep] tgrep status changed {"status":"server-not-running"}
2026-11-05T05:21:05.583Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch complete for (device): bypassDisabled=false, serverFetchFailed=false, serverResolution=Live, serverRetryableFailure=false, deviceLoadFailed=false
2026-11-05T05:21:05.583Z [WARNING] [rust:events_engine::host_delivery] event was not delivered to its registered session host {"error":"GenericFailure, no session host is registered for session ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e"}
2026-11-05T05:21:05.588Z [INFO] Workspace initialized: ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e (checkpoints: 0)
2026-11-05T05:21:05.605Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.605Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch starting for account https://github.com/xxxxxxxx
2026-11-05T05:21:05.607Z [INFO] [rust:rt_tgrep] tgrep status changed {"status":"server-not-running"}
2026-11-05T05:21:05.616Z [INFO] Starting Copilot CLI: 1.0.105
2026-11-05T05:21:05.616Z [INFO] Node.js version: v24.22.1
2026-11-05T05:21:05.616Z [INFO] CAFE metrics are paused because no supported endpoint is available
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.616Z [WARNING] [rust:copilot_runtime::storage::managed_settings] permissions.model has an unsupported or malformed value and was ignored.
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy served from fresh cache (age 90ms) for https://github.com: bypassDisabled=true, keys=[model,permissions,remoteControl,telemetry,sandbox]
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=server, bypassDisabled=true, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.617Z [INFO] CAFE metrics endpoint became available
2026-11-05T05:21:05.629Z [INFO] [rust:managed_policy] managed permission policy now caps bypass-permissions escalation (approve-all, unrestricted paths/URLs) {"bypass_blocked":true}
2026-11-05T05:21:05.629Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: bypass-permissions mode DISABLED by enterprise policy — /allow-all and permission escalation are now blocked
2026-11-05T05:21:05.634Z [INFO] [rust:otel] OTel session policy applied
2026-11-05T05:21:05.637Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch complete for https://github.com/xxxxxxxx: bypassDisabled=true, serverFetchFailed=false, serverResolution=FreshCache, serverRetryableFailure=false, deviceLoadFailed=false
2026-11-05T05:21:05.642Z [INFO] [rust:otel] OpenTelemetry tracker created for session ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e
2026-11-05T05:21:05.643Z [ERROR] Error executing prompt: Error: Managed sandbox policy changed during options update; retry the update
2026-11-05T05:21:05.647Z [INFO] [rust:copilot_runtime::session::registry] Closed interrupted sub-agent records on resume {"closed":0,"dangling":0}
2026-11-05T05:21:05.656Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started
2026-11-05T05:21:06.087Z [WARNING] Best-effort plugin preparation skipped 1 item.
2026-11-05T05:21:06.088Z [WARNING] Best-effort plugin preparation skipped 1 item.
2026-11-05T05:21:06.659Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started
2026-11-05T05:21:07.660Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started

Affected version

GitHub Copilot CLI 1.0.105.

Steps to reproduce the behavior

copilot -p "Hi"
Error executing prompt: Error: Managed sandbox policy changed during options update; retry the update

2026-11-05T05:21:02.836Z [INFO] Shell completions: no writable completion directory found for zsh, skipping
2026-11-05T05:21:02.836Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:02.836Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy fetch skipped: no authenticated GitHub host available
2026-11-05T05:21:02.837Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:03.111Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.638Z [INFO] CAFE metrics are paused because no supported endpoint is available
2026-11-05T05:21:04.638Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.638Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:04.639Z [INFO] CAFE metrics endpoint became available
2026-11-05T05:21:04.641Z [WARNING] [rust:rt_network::tls_certs] Ignoring distrusted emSign ECC Root CA - G3 trust anchor
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.527Z [WARNING] [rust:copilot_runtime::storage::managed_settings] permissions.model has an unsupported or malformed value and was ignored.
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy received from https://github.com: bypassDisabled=true, keys=[model,permissions,remoteControl,telemetry,sandbox]
2026-11-05T05:21:05.527Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=server, bypassDisabled=true, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.532Z [INFO] Session indexing debug: SESSION_INDEXING=true, repository=undefined
2026-11-05T05:21:05.532Z [INFO] [rust:otel] OpenTelemetry configured from managed settings: exporter=otlp-http, source=github.copilot {"capture_identity":false,"capture_prompts":false,"capture_responses":false,"capture_tool_arguments":false,"capture_tool_output":false,"capture_policy_detail":false}
2026-11-05T05:21:05.560Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.560Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.580Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.582Z [WARNING] [rust:copilot_runtime::session::api_session_options_update] Failed to reload managed hooks after enabling managed settings {"error":"no hook session for session id ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e"}
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch starting for account (device)
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy fetch skipped: no authenticated GitHub host available
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=none, bypassDisabled=false, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.582Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.583Z [INFO] [rust:rt_tgrep] tgrep status changed {"status":"server-not-running"}
2026-11-05T05:21:05.583Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch complete for (device): bypassDisabled=false, serverFetchFailed=false, serverResolution=Live, serverRetryableFailure=false, deviceLoadFailed=false
2026-11-05T05:21:05.583Z [WARNING] [rust:events_engine::host_delivery] event was not delivered to its registered session host {"error":"GenericFailure, no session host is registered for session ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e"}
2026-11-05T05:21:05.588Z [INFO] Workspace initialized: ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e (checkpoints: 0)
2026-11-05T05:21:05.605Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: no bypass restriction in force (managed policy absent)
2026-11-05T05:21:05.605Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch starting for account https://github.com/xxxxxxxx
2026-11-05T05:21:05.607Z [INFO] [rust:rt_tgrep] tgrep status changed {"status":"server-not-running"}
2026-11-05T05:21:05.616Z [INFO] Starting Copilot CLI: 1.0.105
2026-11-05T05:21:05.616Z [INFO] Node.js version: v24.22.1
2026-11-05T05:21:05.616Z [INFO] CAFE metrics are paused because no supported endpoint is available
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] device MDM: no policy present on this device
2026-11-05T05:21:05.616Z [WARNING] [rust:copilot_runtime::storage::managed_settings] permissions.model has an unsupported or malformed value and was ignored.
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] server policy served from fresh cache (age 90ms) for https://github.com: bypassDisabled=true, keys=[model,permissions,remoteControl,telemetry,sandbox]
2026-11-05T05:21:05.616Z [INFO] [rust:copilot_runtime::storage::managed_settings] [managedSettings] effective policy resolved: source=server, bypassDisabled=true, serverFetchFailed=false, policyHelperConfigured=false, policyHelperAuthority=none, policyHelperFailed=false, policyHelperFailClosed=false, policyHelperContributedSandbox=false
2026-11-05T05:21:05.617Z [INFO] CAFE metrics endpoint became available
2026-11-05T05:21:05.629Z [INFO] [rust:managed_policy] managed permission policy now caps bypass-permissions escalation (approve-all, unrestricted paths/URLs) {"bypass_blocked":true}
2026-11-05T05:21:05.629Z [INFO] [rust:copilot_runtime::shared_api::permissions] [managedSettings] applied: bypass-permissions mode DISABLED by enterprise policy — /allow-all and permission escalation are now blocked
2026-11-05T05:21:05.634Z [INFO] [rust:otel] OTel session policy applied
2026-11-05T05:21:05.637Z [INFO] [rust:copilot_runtime::managed_settings::api_session] [managedSettings] self-fetch complete for https://github.com/xxxxxxxx: bypassDisabled=true, serverFetchFailed=false, serverResolution=FreshCache, serverRetryableFailure=false, deviceLoadFailed=false
2026-11-05T05:21:05.642Z [INFO] [rust:otel] OpenTelemetry tracker created for session ec0e5738-ab1f-4bc4-8c6a-ff59c7ed2f4e
2026-11-05T05:21:05.643Z [ERROR] Error executing prompt: Error: Managed sandbox policy changed during options update; retry the update
2026-11-05T05:21:05.647Z [INFO] [rust:copilot_runtime::session::registry] Closed interrupted sub-agent records on resume {"closed":0,"dangling":0}
2026-11-05T05:21:05.656Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started
2026-11-05T05:21:06.087Z [WARNING] Best-effort plugin preparation skipped 1 item.
2026-11-05T05:21:06.088Z [WARNING] Best-effort plugin preparation skipped 1 item.
2026-11-05T05:21:06.659Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started
2026-11-05T05:21:07.660Z [ERROR] SessionClient poll loop error (will retry): Error: Cannot invoke native session after disposal has started

Expected behavior

it should return the response

Additional context

Darwin xxxxxxxxxxxx 25.6.0 Darwin Kernel Version 25.6.0: Tue Aug 18 17:49:13 PDT 2026; root:xnu-12377.161.15.700.19~2/RELEASE_ARM64_T6000 arm64