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This is working as design. The cancel option is to cancel the transfer feature and not the callitself. These phones don't hang up on connected calls unless the userinitiates it.CSCto31030 has been opened as a SEV6 enhancement bug.
If you want the caller name of the CUCM caller on CME phone, Mention the name in "Display (Internal Caller ID)" in the line configuration of CUCM phone.
You can try using ausit logs. It records any changes in database. So you might get the extension deletion information there. Below is the link to configure that:http://www.cisco.com/en/US/docs/voice_ip_comm/cucm/service/7_1_2/admin/saaulog.html
