The changes are saved successfully but when I perform transactions and check for the cat/indices there's no such index.
I also wanted to understand if the above will create an index or datastream? Since by default the transaction traces and span data are retrieved from the .ds .i.e. data streams. Please correct me if my understanding is wrong.
Please advise what corrective action needs to be taken to make it save successfully.
There are 2 parts to how Index configuration works in KIbana around APM.
You specify an index where you want to store data.
You specify an index where APM app should read data from.
This setting which you see in the screenshot is the later. By changing this you are telling the APM app that you are already storing data in these new indices and hence these should be used for data retrieval.
I believe for your use case, you want to store data in a different index. For that you need to change the setting in your apm-server.yml file. Here is a topic which can help you with that - Storing APM data in custom/specific indices
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