"This site is on hold" when attempting to replace root site

[bhoomesh]

I need to replace my SharePoint root site with a newly created team site without office 365 roups.

When I tried to replace my newly created site with a root site it threw me This site is on hold error. 

Below are the screenshots for the same.




Can anyone help me with the same?

Thanks

[#2]

Difficult to help here with this problem, best you can do is to open a support ticket

[#3]

This is caused by a retention policy, open https://compliance.microsoft.com/, Information Governanance, Retention policies, find any policies applying to Sharepoint sites and exclude the site using it's URL. Note: the interface here is odd, you have to add the URL, then select it again before pressing done otherwise it doesn't save. Also exclude the current home site (in case you are replacing one).