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It appears that the default for document libraries is that versioning is turned OFF. Is it possible to change this globally so that all new document libraries are set with versioning turned ON as the default? If so does the change also retroactively turn ON versioning for existing libraries (assume not but thought I'd ask).
This is Jonis from Microsoft SharePoint Online Support.
I do not have an option to enable versioning for all of the libraries across a site collection. You enable versioning at the site level. By default, versioning is not enabled in libraries created from the default SharePoint Online templates. This is done to maintain performance in multi-tenant cloud environments. Configuring versioning requires too many general and version settings for it to be enabled by default.
It is possible to create a custom library template, with versioning pre-configured, but that will only work with newly created libraries. The following link is to an article that details how-to Enable and configure versioning for a list on a site
Here is another good link that details Enabling, configuring, and using versioning in lists and libraries. To review the article click on How does versioning work in a SharePoint list or library?
If that does not answer your question please let me know as I will continue to monitor this thread for a few days and will reply to any additional posts or questions.
Microsoft Office 365 SharePoint Support