There's a separate setting for Teams chats vs Teams channel messages, you can select just the ones you need. Details are here: https://learn.microsoft.com/en-us/microsoft-365/compliance/create-retention-policies?view=o365-worldwide#retention-policy-for-teams-locations
Can MS Teams Messages be excluded from Litigation Hold in M365?
As per Microsoft documentation, Teams chats for a user are stored in user's mailbox; when a user is placed on hold, all messages are retained. Is it possible to place the mailbox oh hold, but exclude Teams messages from it, if my company does not care to retain Teams messages?
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JimmyYang-MSFT 56,241 Reputation points Microsoft Vendor
2021-04-07T07:08:27.18+00:00 As michev said, you can manually choose whose conversations you want to exclude. For more details about retention policy for Microsoft Teams, you can refer to:
https://learn.microsoft.com/en-us/microsoftteams/retention-policies
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