In the comments, there is some discussion about how our actions in this life affect our conditions in the afterlife. If there are different levels in the afterlife, for example, higher levels for more advanced souls, then something must make a spirit fit for a certain level and unfit other levels. If we learn from our experiences on earth, then that learning may change us and those changes can cause us to become fit for a higher level.
It is hard for many of us to understand why we incarnate because we seem to lead ordinary lives. But when we return to the spirit world, we are able to understand why we incarnated and then we see how our lives changed us and how we affected other people. If we incarnated to learn a certain lesson and didn't learn it, we won't advance. If our actions had negative effects on other people, we may regret that and want to work to rectify those effects while in spirit or in a subsequent incarnation.
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