Hi,@Hoobajoob
Thanks for posting your question in the Microsoft Q&A forum.
Based on your description, I will answer your questions in turn:
1.if there is a default retention policy applied to the root Recoverable Items folder?
It's impossible. In Exchange Online, the Recoverable Items folder has a default retention period that is applied to the entire folder.
2.if I use the Java ews api to create a custom subfolder under the Recoverable Items root folder, and move email messages into that subfolder, will it inherit any retention policy from the root, or would I have to set one myself?
First of all, we don't create custom subfolders in Recoverable Items root folder, Microsoft doesn't officially support this practice. By default the retention of Recoverable Items subfolders inherits the retention policy of Recoverable Items root folder.
You can refer to this link for details:https://learn.microsoft.com/en-us/exchange/security-and-compliance/recoverable-items-folder/recoverable-items-folder#recoverable-items-folder
3.Presumably any custom folder is subject to the total storage quota for Recoverable Items, correct?
All subfolders are subject to the total storage quota of Recoverable Items.
When an item is moved to the Recoverable Items folder, its size is deducted from the mailbox quota and added to the size of the Recoverable Items folder (quota available is reduced). In Exchange Online, the default limits for the Recoverable Items quota are: a soft limit of 20 GB and a hard limit of 30 GB. However, the quotas for the Recoverable Items folder are automatically increased to 90 GB and 100 GB, respectively, when you place a mailbox on Litigation Hold or In-Place Hold or if a Microsoft 365 or Office 365 retention policy is applied to the mailbox.https://learn.microsoft.com/en-us/exchange/security-and-compliance/recoverable-items-folder/recoverable-items-folder#recoverable-items-mailbox-quotas
If my answer is helpful to you, please mark it as the answer so that other users can refer to it. Thank you for your support and understanding.