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This is a common issue. When an item is rejected it goes back to the previous "edit" step.
In your design the previous edit step is the "contribute" step, or step 0.
The reason is simple. If a person rejects a revision, then that revision needs to be modified before it can be approved. But what you are trying to do is have an item get rejected and then sent straight back for approval. That doesn't make sense! There needs to be an edit step somewhere.
Try reading this: