Conditional Workflow: Previous Value vs Current Value (Set Field Value/Update Item)

Question for the mighty minds out there.

1. A form is submitted with a Status choice field marked "Not approved"
2. Workflow 1 clears that field value by way of using a null variable, set through either Update Item or Set Field Value actions (assumption: this is the current value).
3. Workflow 2 (conditional) is then supposed to kick in if previous value isn't equal to current value, but fails to do so.

Is Workflow 2 still reading the field value as "Not approved" instead of null?