During en estimation meeting it happens that the team agrees that an issue should not be fixed. It could be that it was already included in another issue, that it was based on a misundertanding or that it is simply decided that it is not worth the (estimated) effort.
In such cases the issue will not be added to a sprint, but the fact that it even existed could still be of some value and deleting it is not the right thing to do. It would be best to simply resolve it (with "Won't fix" for example). How can this be done directly on the issue while it is still just living on the backlog?
Changing the resolution should always be done in a transition. Otherwise, having the Resolution field in the Edit screen will create problems.
I suggest you make a direct transition from your backlog status (Open, Ready...) to a final status (Done or Canceled), and place a transition screen that contains the Resolution. See the documentation for details on this.
This way, by highlighting the issue in the backlog and selecting "More Actions" from the ... menu, you can call this transition immediately and set the issue to Canceled with the Won't Fix resolution.
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