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We are trying to unlock project status Dead at system level, so that we rename it to Cancelled at group level.
There is a little trick that I found. This is for group specific approval processes.
When I tried to edit approval process from Setup >> Processes >> Approvals, it doesn't show any custom status set at group level - This is for our group specific approval.
But when I try to edit approval process from Setup >> Group >> Approvals, it started showing me the custom status (in my case Cancelled).
I hope this helps.