John, 

Few points: 

1. I believe the ability to protect only the latest version of the file in OneDrive is a limitation of the Graph API we leverage for backup operations. I can check internally to 2x check, but other APIs we leverage for other operations allow this functionality, and it’s been in the product since the beginning.  Example, CSOM allows this for SharePoint. 
2. As far as retention is concerned, if someone creates a new version, this will reset the counter against ALL versions. We don’t have version-based retention as an option, so it’s all or nothing. 

Example: if you had 60 day deletion time set on the o365 plan. So, say you created a file on Jan 1st, modified it on Jan 15th, and deleted it on Jan 16th. Only on March 16th would BOTH versions be purged out together.

I will confirm #1 and respond shortly. 

John, 

I can confirm that this is currently a limitation on the CV side of things, and that as of today, the Graph API supports multiple versions. 

Both the developer I spoke with and I, came to the same assumption, that when we began working with OneDrive, that this likely wasn’t available to the API. 

That being said, there would be a massive performance conversation if versioning was introduced into our product, and just flipping a switch to enable it would likely cause most customers require more hardware. The never-ending avoidance of MSFT’s throttling would be a prime concern as well. 

Development did confirm there is no work being done at the moment in time to support it. 

I can create a modification request if you wish, which will at least pose the inquiry formally to our team, and we can add other customers to it if it becomes a common request. It will give you something to track. 

Let me know if interested. 

Thanks for the reply. 

This is a good clarification on both retention and limitation. 

And I belive for most customers the current behaviour makes most sense. 

I can see some corner-cases in tenders this would make us disqualify, but at same time this opens up a can of worms on how to do retention of versions.and calculate storage needs.

How to ensure to keep enough versions over time and not keeping all versions forever which would be the effect with todays retention. 

But now I know the limitation and the reasoning, and that should be enough for me for now.