Office 365 - Folder retention policy greyed out

I think the issue may have been because I had a default retention tag, see "Types of Retention Tags" in the following technet article.
https://technet.microsoft.com/en-us/library/dd297955%28v=exchg.150%29.aspx
Will leave an hour or so and see if deleting the Default tag has allowed me to change policies

Morning All,
So I'm using Office 365 and trying to set a retention policy on my inbox and sent items (This is something I tried showing a user earlier and realized it does not work!) however the option is greyed out.
I can set retention policy's on individual items inside the inbox and also folders I have created but I can't set the folder policy for inbox and sent items as the option is greyed out.
I've attached a picture of my tags & policies in ECP (Tried pasting directly in here but kept saying I was over 50,000 characters and would only allow me to attach one file!)
Thanks in advance
Bepster
This topic first appeared in the Spiceworks Community

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