Can anyone explain why my Request Approval action is always approving a request regardless of whether the decision is Approved (value 0) or Rejected (value 1)?
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the screenshots do not seem to match. Did you import the form from somewhere else or did you manipulate the decision control?
In general in an approval form the decision control is bound to the decision task column while the button is not connected. It is only connected to Decision in review actions.
Your screen shows a button settings page that is connected to decision but always returns null, which is why your approval is always approved.
You can add another approval action and check the form structure. The decision control is connected to the decision column like here:
The OK button on that page should not be connected to anything, leaving the final decision to the decision control:
Hope this helps a bit.