Check out the official FAQ on "how do suggested edits work," specifically the section on "What does the "Improve" button do."
When the reviewer marks the edit as helpful:
- The change history records the suggested edit and the improved edit as separate events.
- The original editor still gets +2 reputation for their suggestion.
When the reviewer marks the edit as not helpful:
- The change history records the improved edit only and the suggested edit is not shown.
- The original editor does not get any reputation for their suggestion.
It appears that in this case the editing user unchecked the "this edit was helpful" box. Given that their edit has only minor changes compared to yours, I would indeed consider this to be moderately inappropriate use of edit review privileges, although it's certainly not the worst thing ever.
I'll leave a note for the user asking them to use the "was this edit helpful" box properly in the future. There's nothing we can do to change the history for this particular question, but let us know if you see a specific trend of edits being rejected and then "improved" with only minor changes, and we can take a closer look at whether specific users might need a more direct intervention.