We ran into the same issue and opened a case with MS. We were told this was expected behavior as the intent is to have policy on 'Folder X' in mailbox match that of 'Folder X' in the archive. Our response, at the time, was that was fine, but then users should not be able to change the policy applied to the archive folder. To the best of my knowledge, this has never been addressed by MS one way or the other. The below TechNet forum post provides more details on our experience with this...
http://social.technet.microsoft.com/Forums/en-US/exchange2010/thread/79d9d806-36fc-4afb-a82f-ff3b7b1dac36/#79d9d806-36fc-4afb-a82f-ff3b7b1dac36 -----Original Message----- From: Maglinger, Paul [mailto:pmaglin...@scvl.com] Sent: Thursday, March 14, 2013 12:11 PM To: MS-Exchange Admin Issues Subject: Retention tag on archive folder Exchange 2010, Outlook 2010. If a user creates a mail folder under the Mailbox and assigns it an archive policy, then a folder will be created in the Archive with the same name. If the user tries to set a retention policy on the archive folder, the next day it reverts back to the policy of the folder under the Mailbox. Is this by design? -Paul --- To manage subscriptions click here: http://lyris.sunbelt-software.com/read/my_forums/ or send an email to listmana...@lyris.sunbeltsoftware.com with the body: unsubscribe exchangelist --- To manage subscriptions click here: http://lyris.sunbelt-software.com/read/my_forums/ or send an email to listmana...@lyris.sunbeltsoftware.com with the body: unsubscribe exchangelist