VAR analysis: Reasons Man City was denied a penalty against Wolves

The video assistant referee generates debate weekly in the Premier League, but what is the decision-making process and are the outcomes accurate?
This season, we will examine significant incidents to clarify and analyze the procedures in relation to VAR protocol and the Laws of the Game.
Andy Davies (@andydaviesref) is a former Select Group referee with over 12 seasons on the elite list, officiating in both the Premier League and Championship. With considerable experience at the top level, he has worked within the VAR framework in the Premier League and provides a distinct perspective on the processes, reasoning, and protocols implemented on a Premier League matchday.
Manchester City 2-0 Wolverhampton Wanderers
Referee: Farai Hallam
VAR: Darren England
Time: 37 minutes
Incident: Potential handball by Wolves defender Yerson Mosquera
What occurred: Man City forward Omar Marmoush maneuvered back inside the Wolves defender. The ball appeared to hit the outstretched arm of Mosquera. Referee Hallam allowed play to continue.
VAR decision: VAR Darren England believed that the left arm of the Wolves defender might have been in an unnatural position and suggested an on-field review for a possible penalty. Upon reviewing the footage, referee Hallam, making his Premier League debut, went to the monitor and opted to maintain his initial decision that no handball offense had been committed by the Wolves defender.
Verdict: It is uncommon for a referee to consult the monitor and reaffirm their own decision. For Hallam to do this on his Premier League debut demonstrates considerable resolve.
Hallam is the first Premier League referee this season to uphold his own penalty decision after reviewing the monitor. Unfortunately, in this case, he was incorrect in doing so.
In my view, this was an appropriate intervention by VAR. The images clearly indicate that the Wolves defender’s arm was in an unnatural position at the moment the ball made contact.
This incident fulfilled the following criteria for a handball offense according to the law:
• A player is deemed to have made their body unnaturally larger when the position of their hand/arm is not a result of, or justifiable by, the player’s body movement for that particular situation. By positioning their hand/arm in such a manner, the player risks their hand/arm being struck by the ball and incurring a penalty.
I am certain Hallam will reflect on his review process after the match, as this was a clear handball offense based on the current guidelines and interpretations.