This payment cannot be resolved to that outcome

Manual resolution is checked twice: when it is requested, before an approval request is created, and again when the approval executes. The second check is the important one — the payment may have reached a terminal state on its own during the approval window.

What to do

Nothing to retry. Re-read the payment: if a provider event resolved it while the approval was pending, the manual resolution is no longer needed and the refusal is the system preventing a double resolution.