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We have a filter for this. You can use woo_wallet_process_cashback_status
to add custom order status like below code.
add_filter(‘woo_wallet_process_cashback_status’, ‘woo_wallet_process_cashback_status_callback’);
function woo_wallet_process_cashback_status_callback($status){
$status['custom_status'] = 'Custom status';
return $status;
}
In the function.php file.