@AleksandarKovacevic-8771
I understand you are trying to delete a blob with versioning and soft delete enabled. This is creating a new version rather than the blob being soft deleted like you want. Please correct me if I misunderstood.
This is the expected behavior when having both versioning and soft delete enabled. To move a blob to soft deleted you will need to delete the blob and then delete the version that is created. Unfortunately, it is not currently supported to directly move a blob to soft deleted if versioning is enabled. Please see this table for how operation are handled when soft delete and soft delete with versioning are enabled.
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https://feedback.azure.com
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