Forum Discussion
Versioning consuming TB's of tenant storage
This is a known limitation.
Organizations typically resort to using PowerShell scripts or apps (https://collab365.com/best-document-management-solutions-for-sharepoint/#t-1677591384118) to keep the versions (and the associated storage consumption) under control.
Looks like Microsoft is going to address this: see https://www.microsoft.com/en-us/microsoft-365/roadmap?filters=&searchterms=145802
As others have mentioned, there are scripts and tools that can help deal with these issues.
For example, this tool can delete versions in bulk (by number of versions to keep). Furthermore, it can update versioning settings in bulk (e.g. for all libraries in a site collection or in the entire tenant). It can also set major version limit below 100. https://dms-shuttle.com/documentation/update-versioning-limits-in-sharepoint-online-onedrive/