Hi!
Let me see if I understood the current flow design:
So, before sending the first approval, your flow updates SP list item ('Update item 2').
Now, during first approval process, approver can manually update this SP list item.
Then, once first approval is completed, your flow updates again SP list item ('Update item 4'), and next initiate second approval process.
If my understanding is correct, I would suggest to add a 'Get item' just before the second 'UPdate item' ('Update item 4') to capture first approver manual changes and use it as the basis for this second 'Update item' ('Update item 4')
Hope this helps