Hi @R3dKap,
I have made a test and the issue is confirmed on my side.
There are some things to keep in mind when you customize forms:
- You can't control the hiding of a form when a user clicks or taps Cancel in SharePoint, so make sure you reset your forms in the OnCancelformula of the SharePointIntegration control.
- The properties for the SharePointIntegration control may not be available in OnStart or OnVisible, and those events execute only once while the list is loaded. You can use OnNew, OnView, or OnEdit formulas to run logic before the form is shown to the user every time.
In other words, the custom SP list form could only be loaded once when you added a new item or edited an existing item. When you click the outside the form or on the upper-right cross, the form would be hidden rather than closed, so your form would not be reset.
But when you click the "Cancel" button within the form, it would trigger the OnCancel property of the SharePointIntegration control, and then hide the form (rather than close the form). The OnCancel property of the SharePointIntegration control set to following formula:
ResetForm(SharePointForm1)
So it would reset your form when you click the "Cancel" button.
More details about the things to keep in mind when you customize forms, please check the following article:
https://docs.microsoft.com/en-us/powerapps/maker/canvas-apps/sharepoint-form-integration
In addition, if you want to reset the form when you click the outside the form or on the upper-right cross, please take a try with the following workaround as an alternative solution:
Set the OnEdit property of the SharePointIntegration control to following formula:
ResetForm(SharePointForm1);EditForm(SharePointForm1)

Best regards,
Kris