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Events are syncing as free instead of busy

The free or busy status (the “show as” field) of an event copy is determined by the free or busy status of the original event on the source calendar.

To change an event copy from free to busy, go to the source calendar and change the event to show as busy instead of free.

Note, for iCloud calendars, you can only edit the “show as” field from the iOS app, not from the web or MAC app.