XF 2.0 what Approve/Reject with reason will do

Approve will approve the user and make them active.

Reject will reject the user and the reason provided, if any, will be displayed to them.
 
Nothing. They likely haven't got any posts. They're in that state because they've only just registered, and Stop Forum Spam has found details in their database which suggest this could be a spammer. See the "Spam log" line.
 
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