I’m happy to share that the team has started exploring designs for this feature.
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The fact that people are commenting on this HUGE system flaw daily and that nothing has been done about it yet is quite embarrassing for the Teams App. A very poor showing. I understand that there may be some work involved with it but the issue was initially raised in 2018 and it's now 2020 so it's pretty unacceptable. A previous admin response said that "hard delete" wasn't an option due to legal reasons, however, as another commenter below mentioned, not being able to delete message in a company setting could also lead to legal issues and violations of privacy. On top of this, it also makes the app incredibly to slow to have unnecessary data constantly being stored in chats that no longer serve any purpose. PLEASE FIX THIS ASAP.