Microsoft 365 Flags Emails with Images as Malware

Microsoft 365 users have complained that emails containing images are mistakenly flagged as malware and quarantined. This issue, identified as the service degradation incident EX873252, is impacting Exchange Online users, causing communication disruptions and affecting numerous businesses that rely heavily on emails for operations. Microsoft has acknowledged the problem and reassured users it is actively working to resolve the situation, although no timeline has been provided.