@ward_michael
Here's how we handle things. Like you, we do not let faculty control enrollments, that's all handled through the SIS.
Our SIS imports will delete an enrollment if the student drops before the census date (10th day of our semester) and complete (conclude) an enrollment if they student drops after the census date. We don't use the inactive state.
The Canvas Admin Guide lesson How do I format CSV text files for uploading SIS data into a Canvas account? makes this note for the status field
This is how you enroll, conclude, deactivate (make inactive), or remove an enrollment in a course. Mark as active to enroll a user in a course, completed to conclude a user's enrollment in a course, inactive to deactivate the user in the course, and deleted to remove a user from a course. When in an 'inactive' state, a student will be listed in the course roster for instructors but will not be able to view or participate in the course until the enrollment is activated.
Because we don't use inactive, but use concluded instead, the students no longer show up for us. The instructor can change that option, by going to the People > Settings option and selecting (or deselecting) the View Prior Enrollments option. That is not an option for the inactive status.
With our default course settings (we allow our instructors to override these), a student with a concluded enrollment can still see the course and the data is still available to the teacher for analytics (in case they need to show that the student wasn't doing anything and that's why they were dropped). For inactive students, you cannot get analytics for them. More information about the differences in the enrollment status options is available in the resource Canvas Enrollment Status Comparison.
Perhaps a review of the resource would help you decide if inactive or concluded is the better option? Schools use them different ways, but I get the sense that inactive is intended to be a temporary thing to get the student's attention: owe money, disciplinary actions, need to see your advisor. I can see it where you think they might come back after resolving an issue. Concluded gives you more flexibility and you can set the ability for them to access the course through options and may be more appropriate if you don't expect that they will return.
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