Yes, that is correct. For Jira Business projects, it is only available for Team-managed projects. For Jira Service Management projects, it is available for all types.
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Jira Service Management projects have a process for adding an Approval step to their workflows, and can be added to both the Team Managed and Company Managed Service Management projects.
This article talks about a work around to add approvals to Jira Software and Work Management projects.
The information provided is specific to a Company Managed project. I have not looked at it in detail to see if something similar could be done with a Team Managed project.
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