The only way to cancel an item move is to choose the same item and either move it to another location or recall it into storage. However, that only works if you have NOT placed it inside a building. Once the current building editor decides that the incoming item is part of the building you are stuck until a hearthling places it, if they can.
its still incredibly annoying not to be able to remove walls AT ALL, especially if you make a multy layered build
forces you to reload for every mistake you make
I’ve found with any building more complex than a room it’s much easier to build it in stages. Make every room, every floor a new building. This lets you demolish only small parts and sort of design as you go. Then when you find an error you can just delete that single floor rather than the whole huge building.