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I couldnt find any documentation on "Site rename operation extendend storage" site collection scoped feature. Can any one share the details if you happen to know.

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I searched online and could not find anything about this feature. It should be a new feature in SharePoint Online. I also try to activate it, however, there is nothing changed.

Maybe you need to wait for the official documents.

Or, you can create a new service request about this issue in Admin Center->Support. More Professional will assist you with this feature.

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It looks like this feature will be used to rename the site (with o365 groups in sponline we have lost ability to rename the site, you need to create a new one and migrate the content, while in SPon prem you can just run cmdlet to rename the site)

I only could find that this feature is creating a hidden list in SPO:

Screenshot from SPO Client Browser

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