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M365 Outlook (Known Issues) Importing ICS Files Error
There is a known issue with importing ics files within the Outlook Web App and Outlook desktop users for both Mac and Windows.
The events couldn't be imported. Please try again later. Error message: An internal server error occurred. The operation failed.
Open the .ICS file in a text editor like Notepad for Windows or TextEdit for Mac, then search for METHOD: REQUEST and change that to METHOD:PUBLISH, save the changes and proceed to import the file as you were doing it.