I have not worked in a scrum environment in a couple of years, but when we did it those items were not included in the story. They were part of a definition of done that the team did not really talk about publicly.

Refactoring stories were also rare, it was just sort implicit in the task, unspoken as part of doing it.

I'd imagine that is why they did not get cut.

But yes, management picked feature priorities, but left the implementation up to the team. So at any given time were were working on the "most important" thing from a business perspective.