Symptoms

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Closing a Project also closes its associated Story records.

Release

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Kingston

Cause

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"Set Project Stories to Complete" business rule

Resolution

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The "Set Project Stories to Complete" business rule below is what is responsible for setting its associated stories to "Complete" state upon closing a Project:
https://<instance-name>.service-now.com/nav_to.do?uri=sys_script.do?sys_id=30bb76e187a2130049e94c2c59cb0ba2

The business rule was introduced as a part of the "Project Management V3" plugin which is included as a part of the "Project Portfolio Suite W. Financials" plugin.