Yes, that's fine to submit! Paid projects are allowed, but anything submitted to the jam must be free to play for the duration of the jam + the two weeks immediately following the end of the submission period.
Viewing post in Finished WIP not exclusive to this jam
After talking with my friends, we have decided that we would do the original release plan (which means I cannot submit the game here because the game is only free via community copies). However, I did the write-up here and here, which may be interesting for people of this jam. Bring out your ghosts, people. They may come to live all-anew :)
https://avenueq.itch.io/the-butterfly-dreams Feel free to grab the community copies!