We'd like to look into it. To confirm, were you a part of YPP earlier and now demonetized, or is it the first time you've applied and were rejected? Also, share a screenshot of your channel monetization page: https://yt.be/help/xukU . Thanks.
Watch time can be deleted if you have deleted the videos associated with it. Also, once you reach the threshold i.e. 4K watch hours - you can apply to be a part of YPP. Hope this clarifies.