Compliance Problems

How to Find or Remove an Invalid Microsoft 365 Retention Policy

John WilsonJohn Wilson Oct 15, 2026 871 views

Question details

Users are unable to delete Teams or SharePoint folders due to a retention policy or eDiscovery hold that is not visible in the current Data Lifecycle Management interface.

How to Find or Remove an Invalid Microsoft 365 Retention Policy
Product
Microsoft 365
Device & OS
not provided
Scenario
Attempting to clean up or delete non-empty folders within Microsoft Teams or SharePoint sites.
Observed behavior
Folder deletion is blocked by diagnostics citing an invalid, legacy, or hidden retention policy (such as ModernGroup) that cannot be found normally in the admin interface.
Before you start

Verify that you have Microsoft 365 compliance administrator privileges, as standard user accounts do not have the required permissions to view or modify tenant-level retention policies or eDiscovery holds.

Solution 1Recommended

Review Policies and Holds in Microsoft Purview

Check for any active retention policies, retention labels, and eDiscovery cases that might be applying a hold on the SharePoint site or Teams group.

Often, a folder cannot be deleted because an active compliance policy is preserving the data. A compliance administrator must manually inspect the Microsoft Purview portal to identify any active holds.

1
Access the Microsoft Purview Portal

Log in to the Microsoft Purview compliance portal using your compliance administrator credentials.

2
Check Data Lifecycle Management

Navigate to the Data Lifecycle Management section and review all active retention policies and labels applied to the affected SharePoint site or Teams group.

3
Review eDiscovery Cases

Go to the eDiscovery section and check both Standard and Premium cases to ensure the site is not currently placed under an active eDiscovery hold.

Review Policies and Holds in Microsoft Purview
Do not bypass the hold: Do not attempt to bypass the hold by forcefully deleting individual files or folders, as this can lead to data inconsistencies and compliance violations.
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Frequently Asked Questions

Why does a retention policy prevent folder deletion in SharePoint or Teams?

Retention policies are designed to preserve specific data for legal or compliance reasons over a set period. If a folder contains files governed by these rules, the system will block deletion to prevent unauthorized data loss.

What is the 'ModernGroup' retention policy?

The 'ModernGroup' policy is often a legacy or system-level configuration associated with Microsoft 365 Groups and Teams. It may remain active in the backend of the tenant even if it is no longer visible in the modern Microsoft Purview interface.

Can a standard user remove an eDiscovery hold?

No. Only users assigned the Microsoft 365 compliance administrator or eDiscovery manager roles have the necessary permissions to view, modify, or release eDiscovery holds in the tenant.