What is correct execution state: step is blocked by known issue, but can be run by different way. Whole functionality of Test Case purpose still works fine

Hi Thao Nguyen,

As you have mentioned that the failed step is already a known issue there are couple of things you can adopt.

1) Either mention in the Actual Result section or Comments section saying, this is a known issue and we have a workaround and pass the step.
2) Second, update the test script for the time being so that this step is not executed until the issue is resolved and you can continue the test and test case result will also be not affected. Or update the test script step with the "Workaroud" steps only to make it passed step.
3) Lastly, but not least, as you have customized the "State" as "Exception", continue doing that and complete the test case execution. RQM gives the flexibility to the user to define their own states depending on the project need. Default ones are standard states and any other states than the default ones has to be defined by the stakeholder.

Thanks and Regards,
Krupa Gunhalkar