What's wrong with this item?

Did not try to sound arrogant, it is just that the Audiojungle author of that clip has already uploaded the file with the watermark like it is and videohive authors take the preview and apply it to their videos.

We don’t apply the watermark, AJ authors do. Hence we are not rejected, AJ authors would be.

The rule you quoted applies to Audiojungle authors. We are talking about a videohive item here.