@Chandu Atluri - Thanks for the question and using MS Q&A platform.
Based on the documentation you provided: Manage audit log retention policies, you are correct that lower priority values indicate higher precedence when evaluating audit policies. In this case, Audit1 has a priority of 10 and Audit3 has a priority of 30, so Audit3 would take precedence over Audit1. Since Audit3 has a duration of 10 years and applies to User1 for the SiteRenamed activity, the site renaming action of User1 would be retained in the audit log for 10 years.
It's always a good idea to stay up to date with any changes to retention policies to ensure that your organization is in compliance with any relevant regulations or policies.
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