DLP policy is configured to remove a file that violates the policy and place it in the quarantine location. The file is quarantined, but is also placed in the Recycle Bin that the user can access and restore the file back.
Sharepoint online will automatically place the file in the Recycle Bin when it is removed.
With CASB release 3.175, there is an option that can be enabled for the tenant where the file is permanently removed instead of deleted. So the file will still be placed in the quarantine location, then removed and emptied from the Recycle Bin.
This option needs to be enabled manually by Broadcom. Please open a case with Broadcom Support to enable this for your tenant.