FBA Return - The Item is defective

We sell beauty products (creams/lotions/serums). In the past, we’ve had a few different FBA customer returns, and they have all either been put back into stock or we have been reimbursed. For our latest return, the customer gave the reason ‘The Item is defective’.

Initially, under the FBA customer returns, it showed the unit status as ‘Unit returned to inventory’. The disposition was ‘Customer Damaged’.

When I checked under the Inventory ledger it is saying that the unit has been disposed of.

Does that mean we can’t even create a removal order to get this unit returned to our warehouse?

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Did you create a removal order for the unsellable inventory?

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These are the return settings we have configured

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