New user activation leads to Login denied!

[modernmagic]

Steps:
1)User registers
2)User receives Self activation email
3)User click activation link
4)It brings them to a domain.com/edit-user-profile?view=login
5)When they use the correct username and password they get the following warning:
Login denied! Your account has either been blocked or you have not activated it yet.

J3.10.11

In the backend, I can see that the user's account has not been activated.

How do I resolve this issue?
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SECOND ISSUE:
I changed registration from Self to Administrator
1)User registers
2)User receives activation email (I don't know why they still are receiving this)
3)User click activation link
4)It brings them to a domain.com/edit-user-profile?view=login
5)When they use the correct username and password they get the following warning:
Login denied! Your account has either been blocked or you have not activated it yet.
6)The superadmin also receives the "Registration approval required for account..." email.
7)The superadmin clicks the link which brings him to:
domain.com/edit-user-profile?view=login&return=aW5kZXgucGhwP29wdGlvbj1jb21fdXNlcnMmdGFzaz1yZWdpc3RyYXRpb24uYWN0aXZhdGUmdG9rZW49YjY0MTY2YzgzMjVkZDFjYWMyODAwZjZkMGJlMDg4NjE=

This doesn't make sense that the superadmin link goes to a login page.
And the users account in the backend is still not activated.
********************************

Could this be a login redirect/menu item issue?
If so, what is the setup I need to have to get this all to work again?

[AMurray]

Can you try on a clean install of J3.10.11 - a test site, and run through the above steps again. Does it succeed?

Are you using any other plugins, modules etc that might interfere with this user registration and activation process?

[Webdongle]

Is it Joomla's registration form or 3rd party extension/Template form?
Do you have an extension that deals with users?
https://forumpostassistant.github.io/docs/ please