In D365 F&SCM, on the Credit management hold list page, on sales orders which have been on hold for more than 7 days (with a hold reason - Days overdue), we encounter the error - Release reason is mandatory when we try to release the credit hold With posting of the sales confirmation journal, even though the Release reason is already selected.

Orders which have been hold for less than 7 days are released without any issue.

Microsoft needs to review this and fix the error - allowing us to release credit holds irrespective of how many days the order has been on hold.

The error message should be revised to indicate the exact issue.

As a workaround for orders on hold for more than 7 days , we release the hold Without posting. 

Then on the sales order, we post the confirmation journal manually - this places the order on credit hold again.

But after this, on the second attempt, we are able to release the hold With posting.