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You have an In-Place Hold that was implemented by running the following command:
New-MailboxSearch -Name "Hold-ProjectX" -SourceMailboxes "User1".
You are notified that the In-Place Hold is no longer required.
You need to ensure that the mailbox data can be deleted by using retention policies.
Solution: You run the Set-Mailbox "User1" -LitigationHoldEnabled $false cmdlet.
Does this meet the goal?