Office 365 Licenses

Copper Contributor

We earlier had E3 license.
Basically what happened was when the E5 license was activated on the tenant, we thought the e5 functionality applied only to the users that were specifically assigned an e5 license. This causes 1000’s of emails to either be sent to quarantine or be Zapped(completely deleted) by the Zero Day Auto Purge

Is there any way so that the E5 functionality is only limited to the users whom are assigned E5 license and not the users who are assigned other licenses.
If a tenant has 10 E5 licenses and 90 E3 licenses

Does this make us non complaint for licenses.
Dies it mean that we need to upgrade all E3 licenses to E5 or can our tenant have a mix of E5 and E3 license.
Meaning do they need to upgrade all the E3 licenses to E5 for Microsoft compliance, or can the tenant be mixed with both E5 and E3 licenses and be within compliance?

As of now , we are checking and disabled the configuration to send emails to Quarantine however for some users emails are being sent to restore folder.
When we check the MS logs ,it shows that the actions are performed by users from outlook however the users did not take any action

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