Why is the guest cancelling? @Dave52
Of course the guest can cancel the booking themselves. All they do is go into the booking and hit the cancellation button.
They will absolutely get the host cost back if they cancel two months in advance. They probably don't want to as they will lose the airbnb booking fee. But that is the cancellation policy they signed up to.
Do not on any account accept their request to make the cancellation your liability. You will be penalised financially and have the dates blocked.
Refuse their request to have the booking cancelled as a host cancellation and explain it is the guest not you that wants to cancel.
Write back to the guest to that end and explain the process again and confirm it is not you but them that wants to cancel. Call Airbnb to confirm what is happening.
Tell the guest they need to cancel on their side and in line with the cancellation policy they booked under