this is the validation file:
I haven’t looked at the code yet and you don’t mention what item is this. But I suppose by looking at the image that is a signup PHP form.
I am not an Envato reviewer and I have nothing to do with Envato review process, but most probably an item like this (signup form) will not be accepted because you can find a lot of free such forms on the internet.
To be accepted for sale on Envato Market, your item should have more premium features, also something unique that you cannot find in a free item.
Other codecanyon authors maybe will also contribute with their opinions here.
I agree is to basic and the marketplace us saturated with this kind of scripts.
It is true that some projects look very basic and simple, but maybe some consumers prefer this simplicity and don’t intrest to a crowded project, and on the other hand, they might want to choose that software because of a good and commertial support. There is something that may not exist in all free projects.