Since the order is canceled, there is technically no items that should be marked as fulfilled as there is no order to fulfill them through any longer.
If this is in fact the case i’d suggest allowing the removal of the unfulfilled tag (after all there are also no items that should be marked as unfulfilled). It’s a messy and lazy omission. And offers nothing to “book keeping” accurate or not.
If order cancelled/refunded before shipping - Remove items and also remove “unfulfilled” tag for items. Close and archive order.
If order partially shipped with some items cancelled/refunded - Remove items and also remove “unfulfilled” tag for items. Archive order.
In actuality though this is the correct status for the order unless you are still planning on sending the product out even if it was refunded/canceled.
“Unfulfilled” can’t be considered the correct status of an order that has been cancelled or refunded before shipping. because at that stage there is no payment, therefore no shipping intent.
Even if the “unfulfilled” tag has to remain the affected orders should at least be closed.
For example I currently have 27 unfulfilled orders.. My dashboard tells me there are 33… 6 orders are cancelled but remain “open”
Aesthetics are secondary here, it should be easier to hide/remove cancelled or refunded orders.
D