TLDR: You don't have a Scrum Master
Repeat after me: The Daily Scrum is not an update-to-management meeting!
Your Scrum Master(SM) is acting not as a SM, but as a manager.
The problem is, the SM is not supposed to be a manager. Take a look at the described duties of the SM. Notice the complete lack of anything along the lines of 'track the progress of the project and react accordingly'.
To answer your actual question
Is it true that you aren't suppose to report status in standups in scrum? If so why?
It depends. Again from the Scrum Guide (emphasis mine):
The purpose of the Daily Scrum is to inspect progress toward the Sprint Goal and adapt the Sprint Backlog as necessary, adjusting the upcoming planned work. The Daily Scrum is a 15-minute event for the Developers of the Scrum Team.
So... is the Daily Scrum intended to reveal progress? Sure. But it is supposed to be a peer-driven meeting to get the Team on the same page. You are not supposed to be reporting to anyone (see link above)!
By far, the absolute most alarming point in your post is
The retrospective is cancelled so we can finish our work
Problems that jump out to me:
- The Retrospective is, in my opinion, the single most important meeting in Scrum.
- Part of the Scrum Master's job is to ensure all Scrum meetings are held properly.
- The Scrum Master's job does not include determining how the Team gets work done. That responsibility is held by the Team.
You do not have a Scrum Master. You have a manager.
As for what to do...
Is s/he your actual manager (or has the support of such)? If no, the solution is simple - ignore him/her. You need a Scrum Master - so consider stepping up. You take on the role of Scrum Master. You conduct the Retrospective and Daily Scrum. Bring this up in the Retrospective first (ideally not while the not-SM is there, because unless the the not-SM is also a developer, s/he is not actually part of your Team) and discuss this. Then, when questioned, simply instruct the not-SM that "during our Retrospective, we determined that the current biggest blocker was the lack of a Scrum Master. So I stepped up, and we are now enacting Scrum as the organization requires."
If s/he is your actual manager, things get thornier. But it's your job to make him/her aware of the pitfalls of not having a Scrum Master and having a boss, claiming to be a Scrum Master, telling you to not do Scrum. The Scrum Guide will be your friend during this conversation - it is the only actual, de-facto authority on Scrum. The not-SM's actions are having an impact on the business, and as an employee, when you're unable to fix a problem yourself, it's your job to make your boss aware of it (even when your boss is causing the problem). After that, though, you need to either abide by your boss's instructions, go higher up the chain of command (be careful with this), or vote with your feet.