When items are returned, the return of items is done via the
order type → Return.
Returning items via the credit note is not (any longer) possible.

Reason:

We have removed the return process in the credit note.
The reason for this is that the workflow is correctly documented with the new method. When a customer returns something, it is a return regardless of whether it is initiated by the merchant or the customer.
Therefore, the correct and recommended way by us is:
Order → Return (return items) → Credit note (refund money)

Additionally, a credit note, by definition, has nothing to do with inventory.

However, regarding the additional effort, I can say that a similar method is still possible even without a return and even though we do not recommend it.
The old method:
Order → Create credit note → Return inventory

New (not recommended) possible method:
Order → Return inventory → Create credit note

The effort between the old and the new method is thus the same, only the order is different.