Condition Code may not be changed after order is released

Community,

I am doing CRO External Repair Order, system create a customer order to deliver the broken parts to external supplier via a customer order.

The customer order is released once it is created. Since we are using condition code, the broken part we disassembled from the Customer Owned parent object and receive into stock with condition code ‘UNSERV’. In below screenshot, I am trying to change the condition code on customer order, I got below error.

Question:

1. how to handle this scenario?
2. is it a bug?