I think bounded wait is not satisfied here.
Lets start with the definition=> There exists a limit as to how many other processes can get into their critical sections after a process requests entry into their critical section and before that request is granted.(One process is in critical section another process is waiting to enter,show that if the first process exits the critical section and attempts to re-enter it couldn’t or there is a finite number of time it can re-enter while the other processes are waiting)
Source-https://www.cs.uic.edu/~jbell/CourseNotes/OperatingSystems/5_Synchronization.html
P1 enters in Critical section makes the variable S1=2,S2=1,S3=0 while P1 is in cs another process P2 tries to enter make the variable S1=1,S2=0 and gets stuck during S3.
P1 exits the cs and tries to re-enter the cs it modifies the variable S1=2,S2=1,S3=0 while P2 is still busy waiting now P2 can enter cs but lets give p1 a chance p1 enters start executing the instruction modifies the variable to S1=1,S2=0 and gets stuck during S3.So it can’t re-enter again.