
Explanation:
AutoApply1: The group mailbox and SharePoint Online teams site only
Retention1: The group mailbox, SharePoint Online teams site, and Teams channel messages
1. Auto-labeling policies for Microsoft 365 Groups apply to the group mailbox and SharePoint teams site, but not Teams channel messages directly
2. Retention policies for Microsoft 365 Groups have broader scope, covering the group mailbox, SharePoint teams site, and Teams channel messages
3. Teams chats or Teams channel messages that have their own retention policy locations are still included when the policy targets the Microsoft 365 Group directly
https://learn.microsoft.com/en-us/purview/retention-settings