A Microsoft file hosting and synchronization service.
To check Preservation Hold Library, you may try the following steps:
Open OneDrive for Business in a web browser.
Go to Settings > OneDrive settings.
If available, select Return to classic OneDrive.
Open Settings again and select Site contents.
Review whether a Preservation Hold Library is listed. A Preservation Hold Library can be created when retention settings are applied and may continue consuming storage even after files have been deleted.
If you are unable to locate the Preservation Hold Library, this does not necessarily mean that one does not exist. Depending on the current OneDrive experience or your permissions, it may not be visible from the available interface.
As this is a OneDrive for Business account, I would recommend contacting your current Microsoft 365 or SharePoint administrator and asking them to review the OneDrive site's Storage Metrics to identify what is currently consuming the reported storage, any retention policies or retention labels are applied to the OneDrive site, the site is subject to an eDiscovery hold or other retention-related hold and if Preservation Hold Library exists and is contributing to the storage usage.
You may refer to the following documentation for additional information:
Learn about retention for SharePoint and OneDrive
For version history, you could follow these steps:
Open OneDrive on the web > Locate a large file.
Right-click the file (or select the three dots).
Select Version history.
Review whether the file contains a large number of previous versions, as version history can contribute to storage consumption. If appropriate, unnecessary versions may be removed.
If you have any additional concerns, feel free to comment below. I would be more than happy to assist.