If you have published a personal tag, you cannot prevent users from assigning it to content, be it individual items or folders. That's the whole idea of personal tags, you add them to allow people to customize retention per their needs.
Retention Tags

Hi All
I have a retention tag for mailbox default to 1 year.
I have a retention tag for default folders to 1 year.
I have 3 retention tags for personal folders. 2 years, 3 years, 4 years.
These 3 personal folder tags are added to Default MRM policy. i.e users can choose 2 year or 3 year or 4 year tags for the personal folders.
For the retention tag 4 years. i.e i dont want users to create outlook rule to move emails from inbox to personal folder that has 4 year tag.
Lets say i have a folder test and it has 4 year retention tag. i dont want users to create an outlook rule to move all emails from inbox to this tests folder but user can create outlook rule by subject, topic etc. is this possible.
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Vasil Michev 67,366 Reputation points MVP
2022-02-11T07:51:37.15+00:00 1 additional answer
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Tyler Graham Admin 0 Reputation points
2023-02-09T18:40:36.3+00:00 @Vasil Michev is it possible to monitor users' application of personal retention tags to their emails or email folders? We'd like to get a monthly report showing how many personal tags were applied, if possible. Something similar to what we have with the Data Classification activity explorer for SharePoint and OneDrive.
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No, you cannot.