If a Quote is created by a User that violates an Approval Policy, the Quote will be flagged firstly on Quote Preview giving the User an opportunity to make changes to the Quote based on the rules triggered:

If the User moves forward with creating the Quote that violates the Approval Policy, the Quote will be flagged and require Approval. This Quote won't be displayed in the Quotes tab, but will instead be displayed in the Pending Approval tab:

The User will be notified by email when the Quote has been Approved or Rejected:

The email the User would receive notifying them that the Quote violating an Approval Policy has been Approved:
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The approved Quote will be removed from the Pending Approval tab and will be displayed in the Quotes tab. The User can now move forward with sending the Approved Quote to the Customer by clicking on the email icon under the Actions column:

The email the User would receive notifying them that the Quote violating an Approval Policy has been Rejected:
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The rejected Quote will be removed from the Pending Approval tab and will be displayed in the Approval History tab. The User will click on the magnifying glass under the Actions Column to view why the Quote was rejected:
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The User will then need to click on Edit Quote to make the necessary changes to the Quote. For example, changing the Discount percentage from 50% to 25%.