Hello@R C Thank you for reaching out to us at Microsoft Q&A forum. Happy to assist!
I see you have an interesting question about restoring inactive workload and how the retention policy works. Your understanding is correct. You can recover inactive protection data as long as long restore points are available. garbage collection will not take effect on inactive protection data sources. Although as a side note, being the data source set and marked to be on inactive and, assuming DPM Agent also uninstalled and not visible from DPM UI - which means tbl_AM_InstalledAgent will SET DELETE to 1 this Server ID – the recovery option while restoring data from recovery wizard UI needs to be alternate location. To restore to original location DPM Agent needs to be installed.
And what would the retention policy be for recovery points under Inactive Protection, would they just be stored indefinitely until manually deleted?
YES!
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