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BugZero found this defect 1200 days ago.
When a repository extended to object storage that was initially created using PowerShell or REST API is removed from Veeam Backup for Microsoft 365 and then added back, the retention type changes to item-level. This change in retention type after such a repository has been re-added may cause certain items to not be in retention. This issue applies to versions of Veeam Backup for Microsoft 365 between 3.0 GA (3.0.0.422 ) and 5b cumulative patch KB4135 (5.0.1.225). The currently installed build number can be found in the main menu under Help and Support > About.
Requirements for Issue to Occur This issue only affects repositories that meet the following criteria: Initially created using Veeam Backup for Microsoft 365 3.0.0.422 through 5.0.1.225. Initially created with REST API or PowerShell. Configured with the snapshot-based retention. Extended to object storage
Install the latest version of Veeam Backup for Microsoft 365 to avoid the issue on existing and new repositories. This issue was initially corrected in build 5.0.1.252. If any repositories are experiencing this issue, the following steps will allow the repository to be re-added with snapshot-based retention. These steps are to be performed after updating Veeam Backup for Microsoft 365 to version 5.0.1.252 or higher.