Hi @unknown_25 ,
The error message “Versions of this item cannot be deleted because it is on hold or retention policy” usually appears when a retention policy or eDiscovery hold is blocking the deletion of the document version .
You mentioned that there are no retention policies or label policies configured for your tenant. However, it’s possible that there might be an invalid retention policy that is blocking the deletion. To verify this, you can run a diagnostic test in the Microsoft 365 admin center. You can follow these steps:
- Go to the Microsoft 365 admin center. Select Run Tests: Invalid Retention or grace eDiscovery Hold
- In the Run diagnostics section, either type or copy and paste the URL of the SharePoint or OneDrive site that you want to delete.
- Select Run Tests.
If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment".
Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread.