Hi @Aran Billen
Thanks for your sharing.
Since the Microsoft Q&A community has a policy that "The question author cannot accept their own answer. They can only accept answers by others.", and according to the scenario introduced here: Answering your own questions on Microsoft Q&A, I would make a brief summary of this thread:
Issue Symptom:
Unable to delete folders - possible on hold
But OneDrive retention for OneDrive sites was removed / disabled on Data lifecycle management. Related polices were also checked.
Current Status:
This issue was fixed via: https://aka.ms/PillarInvalidRetention (Try to find an invalid retention policy that might be blocking the deletion.)
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