This behaviour is expected (although admittedly confusing) and has been consistent for many years across Dynamics 365 + SharePoint integration.
✅ Why the behaviour is different
When you delete a document from SharePoint Online, the deletion is handled entirely by SharePoint’s native file system logic, which performs a soft delete and moves the file to the site’s Recycle Bin.
When you delete a document from the Documents tab inside Dynamics 365, the deletion is performed through the SharePoint REST API using the /recycle=false flag, which results in a hard delete.
This bypasses the Recycle Bin completely.
This is not a defect in the integration — it’s simply how the Dynamics 365 → SharePoint API call was originally implemented, and it has never been changed.
💡 Workarounds
Unfortunately, because Dynamics performs a hard delete, the file never enters the Recycle Bin — so your flow cannot trigger on it.
Here are the practical options:
1. Prevent users from deleting via Dynamics
This is the most reliable workaround.
Users would then delete only through SharePoint, ensuring soft-delete behaviour.
2. Use SharePoint versioning instead of relying on the Recycle Bin
If your goal is to retrieve the previous CV:
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Enable major/minor versioning on the document library.
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When a file is deleted from Dynamics (hard delete), you cannot recover it.
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But when a file is replaced or updated, you can always retrieve the previous version.
This doesn’t solve the delete scenario but often solves the underlying business requirement.
3. Intercept deletion using a custom approach
If you absolutely must capture deletes triggered from Dynamics: