Can he issue talaq, she go into iddah then he revoke it?

Although she had agreed and now wants out.

Yes. So, if he issued talaq, they went into iddah, he wanted her back, she said they're back or they were intimate. Then yes, the talaq is done. The talaq ends at that point.

And if she then wanted to be out then she's the breaching party and then it becomes khula.

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