Microsoft 365 Roadmap
Let tenants trim file-version bloat created by retention, without breaking compliance promises. SharePoint/compliance admins at large, regulated enterprises must cap and reclaim storage consumed by retained file versions, while keeping legal-hold and records promises intact. Admins with appropriate Purview RBAC can enable version cleanup for ODB/SPO content even when retention policies are in effect. This would be a policy scoped setting that essentially overrides the default behavior where all versions are retained. When turned on, SharePoint’s version management will be permitted to trim file versions per the defined limits except for specific protected cases.