I looked at your approved/denied section, and the conditional formatting is incorrect, and I am not sure how you configured the submit button - b/c I don't see submit button in the form you sent.
I just added a submit button, and modified the confitional formatting in the approved/denied section - and I was able to see the hidden section in the sent email.
Attached your modified form, and in the 'Main Submit' data connection - change the email address in the 'To' field to a valid one.
Hope that works for you!