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I do not see the Include approval step on my status although I have two transitions set up for approval/removal.
Approvals are only available in workflows tied to JSM projects. You can create ways to only allow the issue to be transitioned by specific users, but marking it with an "approval" won't work in Jira Software.
I recommend installing the "Approval Paths for Jira" app from the Atlassian Marketplace.
This app allows you to create approval processes for any Jira project, not just JSM.
You can define approvers, sequence the steps, and customize conditions.
You can define approvers even if they are JSM customers.