This happens because of a setting in the leave policy that automatically extends an employee’s Last Working Day (LWD) if they take leave during their notice period.
When this setting is enabled:
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Any approved leave taken during the notice period
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Will extend the exit date by the number of leave days used
This ensures the full notice duration is served as per policy.

What you can do:
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Go to Leave Policies under Time & Attendance
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Open the relevant policy assigned to the employee
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Check the setting:
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“Extend exit date if leave is taken during notice period”
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Update or disable the setting if automatic extension isn’t required
If you want to change the exit date of that particular employee learn more here.
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