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I'm using the out of the box Travel Expense request with Approvals template to create a list. When I submitted an item for approval, the Approval Status changed from Not Submitted to Requested just fine. It sent the request to my Teams. I then approved the item in Teams but the Approval Status column never changed the status to Approved. It also doesn't work for Rejected. I had to click on the button to view the Approval request details then close it, and the status changed to Approved/Rejected. Is this a flaw in the template or is there setting somewhere in Teams or List that I need to adjust? The Approval Status column doesn't allow editing.
Based on this video it seems that the Approval Status column is functioning as designed: