there is an issue where in a document library the default limit for number of versions for a document is 500 but its still creating more than 500 versions for a document. Did u guys see this issue before? please let me know.
I have run an experiment with a fresh document library in a modern team site in SPO. And I could not replicate this behaviour.
Default Library Versioning Settings
- 500 major versions
- no minor versions
- Original document version number: 1.0
Updated the document 501 times
I have updated a freshly created word document 501 times. Thus, the last version number was 502.0
Then I browsed the version history for the file. As a result, I could only see the 500 versions: 2.0 through 502.0. Version 1.0 was not availailable because it was outside the 500 range.
So, you might want to create a ticket via the M365 Admin center.
Update. Retention Policy is the Reason
Turns out SharePoint Retention policies prevent old document versions from being deleted.
When Retention Policy is enabled, this is what you will notice. No old versions are deleted until they are past the retention period: