Zend certified PHP/Magento developer

Admin: Cancel Order Fails with Error – “Transaction can only be voided if status is authorized”

We are using Magento v2.4.3 and Braintree as the payment gateway. Due to the supply chain issues we have a scenario we deal with sporadically where a customer places an order for a special order item. The new order is “Authorized Only” at the payment gateway. The authorization expires in 7 days at Braintree. If we end up needing to CANCEL the order after the 7 days, we try to CANCEL or VOID the order, we get the following error and the cancellation is not allowed.

“Your payment could not be taken. Please try again or use a different payment method. Transaction can only be voided if status is authorized, submitted_for_settlement, or – for PayPal – settlement_pending.”

We do not want to capture funds and then issue a refund, we just need to Cancel the order. The only workaround we have discovered is by Invoicing the order but using “Capture Offline”, then create a credit memo on the newly created invoice and also use the “Offline” credit method. However, this is not ideal since the revenue details will still show up in the overall store stats and reports most likely.

Any suggestions on how to resolve this issue? Any settings at Braintree where we can re-authorize the same transaction? Any settings in Magento?

Thanks in advance.