It's great news any time a payment dispute can be settled and resolved without a lawsuit having to be filed. And, filing a mechanics lien claim or pursuing other payment remedies can really help to get paid without a lawsuit. Once payment has been made, though, it's important to release the mechanics lien, if you actually had to file one. Levelset discusses that here: Do you Have to Cancel a Mechanics Lien, or Will It Expire? And, failing to release a mechanics lien after getting paid could result in attorney fees or damages in California.
Generally, less-official claims won't have to be released. So, if you haven't actually filed a lien claim on this job, then a release of claim or something similar won't be necessary. Though a lien waiver or even a retraction letter might be requested.
If this is in reference to an order or project in the Levelset system, feel free to reach out to the Levelset Support team or your account manager with any questions.