in the attachment section, you are using the submitted file option. This wont work if you also have the file upload behavior.
The Submitted file option will only work if you do not include the file upload.
to perform both functions, save the file to the server and attach it to the email, you have to use the Entered Value option for the attachment.
For each file upload behavior, there will be a binding group named WA Uploaded Files (<File Field Name>). each of these contains a binding for server file directory and server file name.
Select entered value option, then click the lightning bolt and expand WA Uploaded Files (<File Field Name>) binding group, select the server file directory binding, and copy the binding code. Then select the server file name binding. place your cursor before the server file name binding and paste the server file directory binding code before it.
repeat this for each file field.