Unable to delete a SharePoint Online site with Retention Policy removed.

We had a retention policy applied to our SharePoint sites. Sites that do not require this policy are added to an exception list. We noticed that we were unable to delete some sites after adding them to the exception list. To get around this, we decided to disable the retention policy but this did not work even after a couple of days.

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Solution

It turns out that Microsoft 365 admin diagnostics has a feature for identifying invalid retention policies.

The short url to this is: https://aka.ms/PillarInvalidRetention

Type in the SharePoint Online site URL and hit the “Run Tests” button

If there is an issue, it identifies it, and provides Insights as to how to resolve this.

Hope someone finds this useful.