Picture a store with about 3,000 SKUs where roughly 8% are sold out on any given day because of supplier delays. The feed often keeps showing them as in stock for hours after they sell out, so the campaign pays for clicks that land on dead product pages.
My view is that the feed should be the source of truth. Sync availability at least every few hours and mark items out of stock as soon as the inventory system knows. Google handles some of this on its own, but the lag is where the wasted spend comes from. A custom label for sold-out items also lets you keep campaign structure stable instead of pausing product groups by hand.
The counterargument is that restocks often come back fast and rebuilding learning is costly. Fair, but for items that stay gone for a week or more, I'd rather lose a few days of impressions than pay for clicks that can't convert. Where do you draw the line, a fixed number of days or something tied to sell-through?