Withdrew when erect and aroused (8)
I believe the answer is:
recanted
'withdrew' is the definition.
(I've seen this before)
'erect and aroused' is the wordplay.
'aroused' is an anagram indicator (letters roused or stirred up into a new form).
'erect'+'and'='erectand'
'erectand' anagrammed gives 'RECANTED'.
'when' is the link.
(Other definitions for recanted that I've seen before include "Withdrew statement about decanter" , "Withdrew and rejected former belief" , "Disavowed a former belief" , "Took back what was said" , "Repudiated a statement" .)