WooCommerce uses the Completed order status for all types of orders, regardless if the order is for Virtual products or physical products. But when your you sell both virtual and physical products on your store, you will want to have a different orders flow and email notifications for your Virtual orders than the orders flow for orders you ship.
The Advanced Shipment Tracking (AST) uses the Completed order status to notify the customers that their order is Shipped and if your store sell a mix of physical and digital products, you will need to create a custom order status with email notification that will be used for your Virtual orders.
STEP 1 – Register a Custom Order Status
Name your custom status as VCompleted and set its slug to be “vcompleted” and register WooCommerce email that will be sent when orders status changes to VCompleted.
STEP 2 – Autocomplete your Virtual orders to the VCompleted Status
We will tell WooCommerce to skip the Processing order status and to autocomplete virtual orders to the VCompleted status
STEP 3 – Rename the Completed order status label to Shipped.
Now, once you set your virtual orders flow, you can enable the rename of the Completed order status label to Shipped on the Advanced Shipment Tracking settings.