Why is new member not moved from members to guest on request

I have added a new guest accidentally to members.  I selected the guest by checking box, and chose tool to move member (last name= Chavis) to guest.  I then selected save.  Member was not moved.  New entry still shows line through because new member did not approve yet.  

Is it because new entry was not approved yet & still showing as lined through?

short answer:  yes... they need to approve first or you can delete the guest record and re-add them as a member record.   either way, they will still need to opt-in.