Hi @Akshith Reddy Thalla,
This is an expected behavior. Since the version history is to restore a previous version of a file in onedrive. This behavior won't record the update of item properties. It only record each version of the file content changes.
Currently we are unable to disable the version history to stop increase of the version. We can only set minimum file versioning to 100. Please refer to the following article
https://sardhianto.medium.com/microsoft-onedrive-file-versioning-setting-4aa7567c48ba
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