hi I think I have same or similar problem. I use UM so Subscribers register to my website.
It used to work fine. But now when people subscribe they get an email asking them to activate their account. So far so good. But the activation doesn’t happen when they click on the link.
In the account details on the WordPress it stays ‘awaiting email approval’.
So I manually approve their account in WordPress. This triggers the email to tell them their account has been activated. But second glitch is when they click on that link in that email it takes them to a form that doesn’t let them log in. Says error.
However if they just try to log in as if they are a regular user then it’s fine.
I could just switch to ‘automatic approval’ but really want to understand what is happening. And don’t want to open up site to security issues by switching to automatic approval.