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I have the following workflow snippet:

Workflow Snippet

However, the Set content approval piece isn't actually updating the Folder's status to Approved (it is remaining "Pending" after the workflow completes). Is there a different way I need to go about setting this for folders?

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You are using Content Approval and SharePoint Designer workflow with 2013 workflow platform type.

I have reproduced it.

You need to use the SharePoint workflow 2010 platform type instead. Per my testing results, it works.

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The issue here was that after setting the status of the folder to Approved I was then changing the workflow status, which functions as modifying the metadata for the folder. By switching the order and setting the workflow status before Approving, the folder now properly displays as Approved when the workflow runs.

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