That means that for the item you are listing, Amazon has restricted marketplace sellers from selling against this ASIN with particular product conditions. For example Amazon is only permitting listing against the ASIN for used items and the item you are selling is a new item.
Until they lift the restriction, you would not be able to sell this via FBA in the condition you chose. You could list it in a different condition to see if they accept it. It is also possible you can sell it as Merchant Fulfilled.