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Can PO add bugs/issues in Product Backlog or only Development team is allowed to add bugs?

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Hello guys,

As per my understanding (my role is SM), PO is allowed to report issues in PB. However, there is a debate/argument going around in my organization b/w Dev Team and PO that, 

"PO shouldn't report any issues, they should discuss them with Dev team, so we can validate if its actually a bug, then we'll report it. B/c there is a chance that it might not be a bug".


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