However, does this mean (please see the imgur link for the photo) that ether was already swapped into WETH and then into PHTR and the last transaction OUT of the wallet was already sent to another wallet as PHTR, but not as ETH? Or approvals do not mean that the ether was swapped?
Approval means if you're giving access for your wallet to be connected with the contract to swap your tokens. It has nothing to do with what out put of your transaction. You're swapping ethereum for PHTR and then it was getting swapped and your ethereum already swapped to the PHTR. You must see your transaction again. It's clear that if approval has nothing to do with it. When you're giving approval for your wallet and that means you're letting your wallet to connect with the swap service. The swap service will call your wallet to interact with the contract and then contract will swap your balance.