The folder hierarchy does not allow this asset to be published

This error message indicates that one or more of the parent folders of the asset you're attempting to publish is not enabled for publishing. Assets in folders that aren't enabled for publishing cannot be published, even when they're set to publish individually.

To enable a folder for publishing:

1. Edit the folder.
2. Select the Properties tab.
3. Enable the Include when publishing option.
4. Submit your changes.

Check every folder between the asset and the Site root, not just the immediate parent. See also Asset is not set to publish.