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The recommended admin portal for setting data classification and retention policies within Microsoft 365 is the Microsoft Purview compliance portal. This portal is specifically designed to address compliance needs, including data governance, risk management, and data protection. It provides comprehensive tools and features that help organizations classify their data, manage retention policies, and ensure compliance with various regulations and standards.

Using the Microsoft Purview compliance portal, administrators can leverage features such as sensitivity labels, data loss prevention (DLP) policies, and retention labels. This centralized location makes it easier to manage compliance related to data privacy and protection across the organization.

The other admin portals mentioned, while relevant for different functions, do not focus on the complete suite of compliance tools necessary for effective data classification and retention management. The Azure Portal is primarily designed for managing Azure resources, the Microsoft Admin Center focuses more on overall administrative tasks for Microsoft 365 services rather than compliance, and the Microsoft Compliance Center used to be the hub for compliance features but has since been integrated into the Microsoft Purview compliance portal for a more streamlined experience.