Hi Swapna!
I'm Jen, and I'd be happy to help you out with this issue.
In order to get to level 2 status in Microsoft Rewards, you have to earn 500 points in a 'single month'. Based on the screenshot, it looks like you have earned 105 points this month, that's why it shows that you need 395 more to make it to level 2. The 400 points you're seeing in your dashboard is the lifetime points which is the total accumulated points you have earned from the day you first signed up for Microsoft Rewards.
I hope this information helps. If you have any questions, please let me know and I'll be glad to assist you further.
Best Regards!
Jen :)
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