Settings & keep-time · Keep-time and retention
What does "Keep up to … versions of each file" mean in the Recycle Vault?
Short answer: It caps how many removed versions of the same file the vault keeps — 5 by default. Going over the cap clears only that file's oldest version, never unrelated files.
If the same file is removed more than once, the Recycle Vault keeps each removal as a separate recoverable version. This setting caps how many versions of one file are kept — 5 by default. When a newer removal goes over the cap, the oldest version of that same file is cleared.
It never clears unrelated files to make room; it only trims the history of that one file.