Invoice Adjustments are being automatically approved during their creation

You found how to get there (click settings in top right hand corner, then expand Organization → Groups, Select … by a group, and you enter the settings page you are seeing)

From here, if you select the edit symbol by Contractor’s policy, Payment items policy for 1 approvers, you will see the following:

If you wish to set approval for all items select "All items”, otherwise your approvals are limited to the mentioned scope.

Mark