Hello @Dainon Snow
Thank you for sharing this question on this community space.
I would like to gather the following relevant note related to the azure backup issue being faced so far....
The policy takes effect immediately after the modifications of the parameters, such as retention, schedule, and so on. This is applicable for all new backups taken from the modified policy. However, the pruning of the recovery points (if applicable) according to the new policy takes 24 hours.
Let me know if that give you a clue regarding to this case scenario.
Looking forward to your feedback,
Cheers,
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