I'm trying to revert the WF state from Approved to Pending Approval whenever a user edits an approved transaction. I have a transition from Approved to Pending Approval with After Record Submit (not other conditions). The issue is that it automatically reverts back to Pending Approval once I click the Approve button (goes to Approved state and back to Pending Approval). Any way to do this right?

I have a workflow that has this logic for approving Bank details. When a user modifies an approved bank details it returns to pending approval. In my 1st step I have a set field value condition on a workflow field (bank detail creator) which provides the user only in even type = create

Yeah, I have that too. In our case though, other users can edit an approved transaction. Not just the user who created the record.