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Marking a Test case status as "Obsolete" reverts the test case status to N/A. However, when you check the test set and the Steps - they same to be "No Run" status.
Is it incorrect to expect that even the steps will reflect as "N/A"? Or - Is it logically correct that since the Test case was not executed from the wizard that the steps remain in No Run.
Yes that is correct and expected behavior.