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I have this as part of a classic SharePoint online 2013 workflow, where there is a "transition to stage" :-

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and i want to redesign it using Power Automate, so what is the equivalent action to the "Transition to stage" inside Power Automate? is using sub-flows the option to go with?

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As far I know there no "Transition to stage" equivalent in Power Automate. In general "Transition to stage" is something like GOTO concept in programming languages, which is not necessary/not recommended.
You can redesign logic in your SharePoint 2013 workflow or use sub-flows (as you suggested).

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