Suppose $(A, \|\cdot\|, *)$ is a non-unital Banach algebra.
Consider the left regular representation $\iota: A \hookrightarrow \mathcal{B}(A)$, defined by $\iota: a \mapsto (x\mapsto a*x)$. Let's also denote $\hat{a}:=\iota(a): x\mapsto a*x$, for all $x\in A$.
Then, by Banach algebra inequality, we have $\|\hat{a}\|_{\mathcal{B}(A)}=\sup \frac{\|a*x\|}{\|x\|}\leqslant \|a\|.$ So the representation $\iota$ is bounded, since we always have $\|\iota\|_{\text{OP}}=\sup \frac{\|\hat{a}\|_{\mathcal{B}(A)}}{\|a\|}\leqslant 1$.
Recall the definition of left approximate identity: a net $(e_\lambda)\subset A$ such that $\|e_\lambda * a -a\|\to 0$ for all $a\in A$. Then, by left regular representation defined above, we can also write $$\|e_\lambda * a -a\|=\|\hat{e_\lambda}(a)-Id(a)\|=\|(\hat{e_\lambda}-Id)(a)\|\to0.$$ But this can be equivalently stated as
There is a net of bounded operators $(\hat{e_\lambda})\subset \mathcal{B}(A)$ converging to the identity map $Id$ under the strong operator topology (SOT).
So the following proposition is trivially true.
Proposition. Nonunital Banach algebra $A$ admits a left approximate identity $(e_\lambda)$ iff the identity map lies in the SOT-closure of the image of left regular representation: $Id\in cl_{SOT}(\iota(A))$.
Assume the condition above is satisfied, it appears the following additional assumption would suffice as a sufficient condition for the existence of a sequential left approximate identity.
On $\mathcal{B}(A)$, the SOT is first countable. (By the Birkhoff-Kakutani theorem, this is equivalent as the SOT being metrizable)
But, according to this answer, the above condition only occurs when $\mathcal{B}(A)$ is finite dimensional. But this metrizability condition can work if we only restrict the SOT on a norm-bounded set: a norm-closed ball containing the identity map.
Alternatively, since the SOT is weaker than the norm topology, we can simply reduce it to norm-closure.
Theorem If the identity map lies in the norm closure of the image of left regular representation: $Id\in cl_{\|\cdot\|_{\mathcal{B}(A)}}(\iota(A))$, then $A$ admits a sequential left approximate identity.
A similar discussion for the right regular representation and right approximate identity also stands.
Question 1: is the above reasoning correct? Did I miss or misunderstand anything??
Question 2: if it does make sense, are there established/known sufficient conditions for the identity to be in the norm closure of the image???
If $a$ is an element of $A$, then the map $i(a):x\in A\mapsto ax\in A$ is clearly a map of right $A$-modules. A strong limit of maps of right $A$-modules is a map of right $A$-modules, so if the image of $i$ is dense, then all maps in $B(A)$ are right $A$-linear.
Now if $b$ is an element of $A$, then map $j(b):x\in A\mapsto xb\in A$ is bounded, so we see that it is right $A$-linear: this implies that $b$ is central in $A$, and this that the algebra $A$ is commutative.
Since the map $a\in A\mapsto i(a)\in B(A)$ is a map of algebras with dense image, this implies that $B(A)$ is commutative, and therefore $A$ has dimension $1$.