After further testing, I've determined the status actually only gets changed to complete for milestones when canceled, not tasks. Canceled tasks status is correctly changed to canceled.

On 02/15/2014 02:00 PM, Christian Carlow wrote:
Canceling a project task does not remove it from the project's task list. The status also gets changed to complete. Is this a bug? Is there any way to remove a task from a project task list?

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