Steps to replicate:
1. Create Return from Order Manager.
2. Changes status to cancelled to empty.
System throws FreeMarker template error and system does not honour allow-empty flag to display or hide empty option in drop-down.
Expected: System should not show throw free marker template error or even it should not display empty status as this is not a valid status change.
Also system should honour allow-empty flag to render empty value in drop-down.