Our team has decided that All bugs related to specific story should be reported in the same story after reopening it as part of DOD. This also means that there would be no additional SPs for bugs. Such bugs would be discussed as part of retrospective and why it was missed.
Is this a correct approach following SCRUM values? I disagree. Please suggest.
It is important to realise that story points measure the delivery of business value and are not about measuring effort. If work is done to fix bugs or on any task that does not deliver business value it is regarded as an overhead that reduces the teams velocity by reducing the number of story points that can be achieved.
The velocity of the team is not a measure of the performance of the team. It is a metric used to help with establishing the capacity of the team in future sprints.
Generally when bugs are raised on a story in the same sprint that the story is being developed then they are simply treated as part of the work required to complete the story.
If a bug is raised on a story that was thought to be done in a previous sprint then generally it would just be fixed in the current sprint. You would not typically re-open an old story just because a bug was reported against it.
Discussing why a bug was missed in the retrospective is a good idea. The longer it takes to find the bug the longer it usually takes to fix the bug, as developers are less familiar with the code that caused the problem.