Inventory restocking and Shopify order status updates are separate actions.
If an Amazon FBA/MCF fulfillment is successfully cancelled, review the inventory for the affected products in Shopify and make any necessary adjustments. You can restock the cancelled quantity in Shopify if appropriate for your inventory workflow.
The Shopify order cancellation setting in Shipr controls whether the Shopify order status is updated after a successful Amazon fulfillment cancellation. It does not, by itself, determine whether inventory is restocked.
Always verify the inventory quantities before making further fulfillment or order changes.