Update-MgDriveItemRetentionLabel Fails with "Empty correlation Guid"

[12Knocksinna]

Describe the bug

I am trying to update a retention label on a file using code that's been working for months. Now it's failing with a "Empty correlation Guid" error.

I suspect that the underlying Graph API https://learn.microsoft.com/en-us/graph/api/driveitem-setretentionlabel?view=graph-rest-1.0&tabs=powershell is failing because invoking the API with Invoke-MgGraphRequest also fails. There's also been problems reported in the SharePoint PnP module that seems to be dependent on the Graph API (see pnp/powershell#5021 and https://learn.microsoft.com/en-us/answers/questions/4376864/error-applying-retention-label-to-sharepoint-docum)

Expected behavior

I expect that code like this will work:

$Global:NewRetentionLabelParameters = @{}
$NewRetentionLabelParameters.Add("Name",$NewLabel.DisplayName)

$Status = Update-MgDriveItemRetentionLabel -DriveId $OneDriveInfo.Id -DriveItemId $File.Id -BodyParameter $NewRetentionLabelParameters

All the parameters are valid in terms of drive identifier, file identifier, and the name of a retention label to apply. The result is:

Update-MgDriveItemRetentionLabel_UpdateExpanded: Value cannot be null.
Parameter name: Empty correlation Guid

Status: 400 (BadRequest)
ErrorCode: notSupported
Date: 2025-07-18T14:29:28

Headers:
Cache-Control : no-store, no-cache
Vary : Accept-Encoding
Strict-Transport-Security : max-age=31536000
request-id : f4133861-bcc0-46ac-bcd4-13ea117756d7
client-request-id : 3924d5e7-538f-4b38-92b4-18bc473963ac
x-ms-ags-diagnostic : {"ServerInfo":{"DataCenter":"North Europe","Slice":"E","Ring":"4","ScaleUnit":"000","RoleInstance":"DU6PEPF00020C21"}}
splogid : d801b3a1-e03d-d000-68cc-f115af2a8ef9
Date : Fri, 18 Jul 2025 14:29:28 GMT

Recommendation: See service error codes: https://learn.microsoft.com/graph/erro

How to reproduce

Select a retention label.
Select a target file in a SharePoint site or OneDrive account.
Get the identifiers for the drive and file.
Build a hash table to hold the details of the retention label to apply.
Run the cmdlet.

SDK Version

V2.29

Latest version known to work for scenario above?

V2.25

Known Workarounds

None. This fails too:

$Uri = ("https://graph.microsoft.com/v1.0/drives/{0}/items/{1}/retentionLabel" -f $OneDriveInfo.Id, $File.Id)
invoke-mggraphrequest -uri $Uri -method Patch -Body $Params

Debug output

Click to expand log

```

HTTP Method:
PATCH

Absolute Uri:
https://graph.microsoft.com/v1.0/drives/b%21_xwZzApnQEeEWOYGdTfHR_FlEFWmBHlJixksigwWMZ_hpEW05Pd_R7OzPT4YdqXq/items/01R343MZ43HNLCSCCT3ZBLLUIJGB3GJ5B3/retentionLabel

Headers:
FeatureFlag : 00000003
Cache-Control : no-store, no-cache
User-Agent : Mozilla/5.0,(Windows NT 10.0; Microsoft Windows 10.0.26100; en-IE),PowerShell/7.5.2
SdkVersion : graph-powershell/2.29.0
client-request-id : 7033f685-5196-4f65-bad8-60a0be80d6cc
Accept-Encoding : gzip,deflate,br

Body:
{
"name": "Retain for 20 Years"
}

DEBUG: ============================ HTTP RESPONSE ============================

Status Code:
BadRequest

Headers:
Cache-Control : no-store, no-cache
Vary : Accept-Encoding
Strict-Transport-Security : max-age=31536000
request-id : 3698b840-89fa-4f60-b9f8-2471e22b1a83
client-request-id : 7033f685-5196-4f65-bad8-60a0be80d6cc
x-ms-ags-diagnostic : {"ServerInfo":{"DataCenter":"North Europe","Slice":"E","Ring":"4","ScaleUnit":"007","RoleInstance":"DU6PEPF0000B5D7"}}
splogid : 5f02b3a1-3001-d000-358d-39a682c8eba5
Date : Fri, 18 Jul 2025 14:38:40 GMT

Body:
{
"error": {
"code": "notSupported",
"message": "Value cannot be null.\r\nParameter name: Empty correlation Guid",
"innerError": {
"date": "2025-07-18T14:38:40",
"request-id": "3698b840-89fa-4f60-b9f8-2471e22b1a83",
"client-request-id": "7033f685-5196-4f65-bad8-60a0be80d6cc"
}
}
}

Update-MgDriveItemRetentionLabel_Update: Value cannot be null.
Parameter name: Empty correlation Guid

Status: 400 (BadRequest)
ErrorCode: notSupported
Date: 2025-07-18T14:38:40

</details>


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