Cancelling a request within a request set

Hello,

We have a request set with a structure like below:

Request Set A
Stage 1
Request 1
Stage 2
Request 2
Stage 3
Request 3

The user cancelled Request 2, and it went into a Completed - Terminated status.
Stage 2 went to Running - Paused status and stayed there, and Stage 3 never started.

We expected Stage 3 to run, which would have started Request 3.

I reviewed the set up of the request set, and every stage directs to advance to the next stage, regardless of outcome.

Are our expectations incorrect?

Thank you, Kevin