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Microsoft 365 Certified: Endpoint Administrator Associate · Microsoft
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Half the answer is provided in the screengrab, "Based on", which states "based on when its created" Created on Jan 1, 2020. Add 6 months i.e. July 1, 2020. Simple math!
What does mean by "Retain and Delete" ? Will the file be retained in Trash folder?
On Feb 1, 2020 when it was deleted, it was retained till July 1st, 2020 in trash folder. On July 1st, 2020 it was permanently deleted. When a retention label is applied, it can be modified but can't be deleted. Hope this answers your question.