'Invoice and delivery on hold' field drop down in Account status form (Credit and collections > Setup > Credit management setup > Account status) is showing only few options. Customer has a customized option like 'delivery' in customer form > Credit and collections first tab > Invoicing and delivery on hold field.
Since Account status form is not showing this customized option for selection, when account status field is selected in customer form, invoice and delivery on hold field is getting updated with something other option which is not correct.