Amazon Seller Support telling customers no need to return item and can be disposed with automated refunds!

I am sick of being an Amazon seller to be honest. This company just gets worse and worse for sellers when you think it can't get any worse. We sell high value items in the range of 300-2000 GBP. With Amazon's new automated refund, customers are asking seller support if the item needs to be returned and customer service is telling them they will still be refunded and there is no need to return the item back even when we've sent the customer a prepaid label! Now the customer doesn't want to return it because that's what seller support said to him!

Has anyone experienced this? What can we do? We have like about 50 returns in the last 2 months where customers haven't return the product back but have already been refunded. SAFE-T says we're not eligible because we are MFN sellers. We open support cases but seller support says they can't help.