Nice finished 2016 two points clear of Monaco at the top of the table but suffered a premature cup exit in Brittany.
Nice finished 2016 two points clear of Monaco at the top of the table but suffered a premature cup exit in Brittany where second-half goals from Jeremie Aliadiere and Walid Mesloub wiped out Alassane Plea's opener.
"We're disappointed because we dominated in the first half. They changed their system in the second half because they saw it was too easy for us," said Nice coach Lucien Favre.
"We should have made it 2-0 earlier. And then they equalise and it revives them obviously, but that's how it is."
Record 10-time champions Marseille overcame top-flight rivals Toulouse with Remy Cabella scoring twice -- the second on 117 minutes -- either side of a Jimmy Durmaz strike for the hosts.
Rudi Garcia's side will face five-time winners Lyon in the next round after Alexandre Lacazette sparked a 5-0 rout of Montpellier as the floodgates opened with just four minutes gone at Parc OL.
Mouctar Diakhaby headed in a second soon after and Nabil Fekir added Lyon's third before half-time with Maxwel Cornet scoring twice after the break to cap a thumping victory.
Rennes throttled amateurs Biarritz 6-0 to set up a last-32 clash with holders Paris Saint-Germain.
Bordeaux needed a late goal from Brazilian forward Malcom to see off second division Clermont 1-0, but Metz were dumped out 2-0 away to Ligue 2 promotion chasers Lens.
On Saturday, Germany international Julian Draxler scored on his PSG debut as Unai Emery's men -- who equalled Marseille with a 10th title last year -- thrashed Bastia 7-0 at the Parc des Princes.
Radamel Falcao and Valere Germain both scored in Monaco's 2-1 victory over Ajaccio on Friday.