This was announced on Monday and I wanted to make sure you saw it as users may have questions…
Microsoft is enabling versioning on all Document Libraries in OneDrive for Business, and team sites in SharePoint Online, including both group-connected team sites and team sites not connected to an Office 365 Group. We'll be gradually rolling this out to Targeted Release customers in early June, and the roll out will be completed worldwide by the end of July.
See Office 365 Roadmap ID 30544
What is changing?
All SharePoint and OneDrive libraries will be set to retain a minimum of one hundred major versions. Existing libraries that have versioning enabled but are set to retain fewer than one hundred major versions will be updated to retain the new minimum. Libraries already set to retain one hundred or more major versions will not be affected, including those with the default setting of five hundred.
With these changes, the Document Library Settings page will no longer support the ability to disable versioning or configure it to retain fewer than one hundred versions.
While this update does increase the number of possible versions saved for any document, most customers will not notice a significant increase in storage requirements based on this change. Also, earlier this year we announced plans to increase the SharePoint Online per user license storage allocation, allowing greater collaboration and storage capacity for organizations using Office 365 and SharePoint Online. To read the announcement about the increase in default SharePoint Online storage allocations please click this link.