Yes.
The parcel probably was shipped since it is not unusual for a parcel to take 20 calendar days to arrive on your Canadian doorstep.
It would be unusual for a seller to buy the shipping label and then not use it.
The reason for making the Dispute would be the seller's lack of communication. The parcel will probably show up as soon as you file the dispute because: Murphy's Law.
Accept that 'Priority" is a meaningless advertising term. Unless the service was also noted as having less than three day service it will be no faster than letter or parcel mail. In fact, it probably is a fancy name for parcel mail.