Thank you for your votes and comments on this feature. The team is in the process of finalizing designs for deleting private chat threads. I will update as we have more progress to share.
We are working on a design with more density in mind. Until this design is solidified we are putting this item back to Under Review.
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Can't believe this option does not exist, clearly Microsoft have no clue how people work and use their products. Having pop ups piling up until the top of the screen and no alternative expect turning notifications off is beyond ridiculous