Selaginella and Salvinia are considered to represent a significant step towards evolution of seed habit because:
Female gametpphyte is free and gets dispersed like seeds
female gametophyte lacks archaegonia
megaspores possess endosperm and embryo surrounded by seed coat
embryo develops in female gametophyte which is retained on parent sporophyte
Seed habit found in vascular plants is the most successful way in which sexual reproduction has taken place. Selaginella and Salvinia are heterosporous meaning they produce two kinds of spores:
Microspores (small): Gives rise to the male gametophyte.
Megaspores (big): Gives rise to the female gametophyte.
These newly formed gametophytes are retained on the parent sporophytes. Formation of zygote and stages of embryo take place within female gametophyte. This is a precursor to the seed habit and hence considered an important step in evolution.