Hi Heraleen,
This is the expected behavior. If you press the submit button, The status of the request will be approved.
If you want to change the status of the request to rejected then you will have to use the reject button for the other action option .i.e Other action -> Reject.
Rejecting the line item has no impact on the request status. If you check the audit logs it will clearly indicate that the user line was rejected and then the request was submitted and pressing the submit button has changed the status of the request to approved.
I hope this will help.
Thanks & Regards
Japneet singh