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From the answer on Developer Community it seems like this will not get fixed:
It is by design that the Resolved state of User Story is in the In Progress state and the decision was made a long time ago. Currently there’s no ETA on when this will change.
So now you can create a custom State and add it to Resolved category as a workaround.
yeah been like this since day 1. Not sure why though. We have it on our list but there is worry changing it would have unintended consequences. No current plans to do anything about it yet. but I am tracking in.
Current state
In the Agile process template:
Resolved
state is in the Resolved category.Resolved
state is in the In Progress category.Expected state
This would be consistent among the work item types. The
Resolved
state should be in the Resolved category.Screenshots
User Story work item
Bug work item
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