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I have a SharePoint Online library where I have applied a retention label which sets document Record Status to Locked, we can Unlock the document by changing it's Status to Unlocked which is a manual process. Is there any way in Power Automate to unlock the record status and then lock it again?

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Per my knowledge, Power Automate has no direct action to update "Retention label" column for now. You can upvote the idea here so MS can get you thoughts.

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