FIFO in commodity position

Recently I had a one open position in LeadM under @169.60 “NRML” after few days later, I traded one LeadM intraday @ 168 which I allowed system to close my position as per cutoff.

To my surprise next day I saw my LeadM which was under “NRML” which I brought @ 169.60 got closed and my intraday LeadM which I brought @ 168 position got automatically converted as a “NRML” order

I got reply from Zerodha that they have a policy of FIFO in commodity settlements.
Is this right or something was wrong in the entire system?

I am Not sure about this.
@Speculator Knows everything about commodity.