I am using D365FO (Update 36).
My Sales Order has two lines (Each with Qty 1)
On clicking Release To warehouse , instead of creating a single shipment for the SO, it creates 2 shipments.
I do not observe this pattern in Ax2012.
Did anyone faced this issue before?
Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies. At the top of that screen click on "Create default setup".
Once you do that, it should behave as it did before the latest update. It is the result of a new feature that offers more consolidation flexibility but requires this new minimum setup.
Hope this helps.