Hello Sadaf,
No need to create a support request.
I was able to clarify this with Product Team.
The setting Default Inventory Policy is for product created on Shopify side, when exporting items from BC.
When you set it to Deny, it means the user cannot buy the product on Shopify if stock is zero or less.
However, system will export the stock info as it is - if BC has negative stock, this negative numbers will be exported to Shopify.
You can see this setting reflected in Shopify Product:

There are some plans to improve and make BC fields usage more clear in future.
Hope this information can clarify your doubt.
Thank you.