@Shannon367 Generally, the cleaning fee is not charged when the guest cancels and hasn't stayed in the space. Do you have another group arriving soon? Can't you just leave the rooms all clean for them?
@Shannon367 Your cancellation policy is strict, so you should be receiving the payout anyways, minus the cleaning fee. Either keep the full amount in accordance with your cancellation policy, or give them a refund minus what you paid the cleaning staff.
And yes, the guest should cancel themselves through Airbnb. Don't cancel on their behalf or accept a cancellation request, or you will be penalized.