Now i got more info from my theme support and got to know this form is showing the select fields and the select2 script is added in it, that's why its showing this way (The scripts and styles for select2 is unique and is included in the theme. If any element which uses the select2 this styling will be added in it automatically).
A select2 script is shown this way only and its designed cannot be changed.
I was thinking, is it possible to rename this select field in plugin code somehow or it is defined by html?
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CRED doesn't add the placeholder attribute to multiple select fields (because the default browser display of such a field doesn't provide for displaying placeholder text).
In your case where you theme is converting the select box to use the select2 library, placeholder text can be added, but as it is your theme initiating the select2 code you don't have an opportunity to add it at the time.
This should work for that particular select dropdown on that page:
You will need to edit the placeholder text. For some reason there is an inline width style added which prevents the placeholder text being visible which this also removes. And note that I have used the window load event to trigger this code, by when, hopefully, your theme will have replaced the CRED multiselect with the select2 instance.