you have the action of the form set to post to the thankyouapplication.php page, this is by passing the image upload function.
set the form to post to itself instead.
you will also need to apply the universal email behavior to the baicform.php page instead of the thankyouapplication.php. you can set the universal email to redirect to the thankyouapplication.php page after the email is sent.
to attach the uploaded files to the email, on the attachments tab, select entered Value.
Click the lightning bolt next to value and Expand the Uploaded Files (Files field Name) Binding group. Select the Server Directory binding.
this will add code similar to:
<?php echo $WA_DFP_UploadStatus["WA_UploadResult1"]["serverDirectory"]; ?>
copy that code and then click the lightning bolt again, select the server File Name Binding. This will add code similar to:
<?php echo $WA_DFP_UploadStatus["WA_UploadResult1"]["serverFileName"]; ?>
you will need to past the previous code in front so it looks like:
<?php echo $WA_DFP_UploadStatus["WA_UploadResult1"]["serverDirectory"]; ?><?php echo $WA_DFP_UploadStatus["WA_UploadResult1"]["serverFileName"]; ?>