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I think the documentation element that you've listed is just a left over from the way things used to be that was missed before the documentation was released... I confirmed that it is indeed in the documentation as you listed.
The way this works is that a pending request can be validated against version data as if the change was being applied, but doesn't actually change a hierarchy until it is approved. Therefore everything that is actually in the hierarchy is approved by definition. The pending requests sit in a request queue until approved. If the version is finalized and copied, any pending requests will also be copied and can be approved in the new version. A look through the WDK documentation will make this much more clear than just looking at the DRM User and Admin Guides.
Your response was helpful.
Can you please help me provide the link for WDK documentation?
If you download the WDK, the documentation is in the zip archive.