I believe the difference is “Not in stock” relates to products that can be backordered, and “Out of stock” means sold out, with no plans for getting more.
If you are not managing inventory (that is, you manually set a product to Out of Stock when it sells out), then you need to ensure that “Manage stock?” is unchecked on all products (and product variations).
If you’ve used a CSV Import/Export tool, sometimes stock levels that should be NULL
get set to zero, and that’s what causes the issue. I hope this helps!
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