If you create an appointment in D365, and cancel it in D365, the attendees receive a notification in Outlook. But there's no indication that the meeting was cancelled. It also does not remove it from your calendar. When you do this from Outlook it removes it from the calendar and the notification sent to the attendee says cancelled in the subject
This is how it appears in Outlook when the appointment is cancelled from D365. There is nothing to indicate it's cancelled.