Best way to achieve this is to do the following:
Trigger: When a new Item is created (In List #1).
Action: Start and wait for approval.
Action: Condition: (Arguments: Start and Wait for approval's "Approvers Approval Response" output" is equal to Approved.)
If Yes:
Create Item: (List #2) Pass identical values from the Trigger to the second List.
If No: Send email / Teams Message advising the creator of the item about the denial with comments.
