Hi @Vishnu Anand ,
Welcome to Q&A forum!
For the unlicensed OneDrive account, you can choose to license or delete the account. If no action is taken, the account is automatically archived from January 2025.
As you said, "The accounts listed in the report belong to users who are no longer with the organization." You may want to delete these unlicensed OneDrive accounts.
For more details, please see:
https://learn.microsoft.com/en-us/sharepoint/set-retention
Good day!
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