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Hi @Hemanth Reddy
Based on your description and the folder statistics you shared, it appears that nearly the entire 100 GB of data is currently stored in the DiscoveryHolds subfolder under Recoverable Items, while other subfolders such as Deletions, Purges, and Versions are essentially empty.
The presence of data in the DiscoveryHolds folder indicates that the mailbox is subject to a Microsoft Purview compliance hold, such as an eDiscovery hold, In-Place Hold, retention policy, or retention label (compliance tag).
Discovery Hold is a data protection mechanism enforced by Microsoft Purview. When a mailbox falls within the scope of any compliance hold, Exchange is required to retain the data and is not permitted to permanently delete it, even if the items were hard-deleted by the user or an admin. This restriction applies regardless of the Managed Folder Assistant execution or ELC configuration.
Although InPlaceHolds currently shows as {} and ELC processing is enabled, there may still be hidden or lingering holds in effect (for example, retention policies, compliance labels, delay holds, or orphaned hold references). These types of holds are managed at the tenant level and do not always surface through mailbox-level PowerShell attributes, but they will continue to protect items stored in DiscoveryHolds. As a result, the Recoverable Items folder size is expected to remain unchanged. This behavior is by design to ensure compliance with legal and regulatory requirements, and it is not an issue with Exchange Online or Managed Folder Assistant.
To better address the issue and identify any remaining compliance holds, you could try to verify your tenant configuration in the Microsoft Purview portal:
Any active or previously configured eDiscovery (Standard or Premium) cases that may still include this mailbox as a data source or custodian.
Retention policies applied to the user, either directly, through group membership, or via organization-wide scope.
Retention labels (compliance tags) that might be retaining content for a defined period or indefinitely.
These tenant-level compliance settings can continue to protect items in the DiscoveryHolds folder, even when mailbox-level holds (such as InPlaceHolds) are no longer present.
For futher information, you can refer via: Manage holds in eDiscovery | Microsoft Learn
I hope this helps.
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