Automatic version history not working for self created document libraries

Hi, 

Our SharePoint environment is currently using the default version history number of 500. We were looking at lowering this because we're just consuming way too much storage.  Last year we noticed that there was a new way to manage version history, automatically, which is also recommended by Microsoft.

I finally got my head wrapped around on how it works, and we're doing some testing on it on just a few sites, but when I set it on a document library outside of the default "Document" library that comes with the site, it doesn't work. Nothing is set to expire even though there is lots of documents with aged versions that should have seen expiry dates by now. 

When I set it the versioning to automatic on the default "Document" library, it seems to work, as I do see files that have expiry dates.

Is anybody else having a similar experience trying to use automatic version history?