Not eligible for data streams because config contains one or more settings that are not compatible with data streams

Assuming your stack is all 8.7, an elasticsearch output will, by default, create a data stream, not an index. If you want to create an index instead then set data_stream => false on the output.

If you do want a data stream then you cannot set the index name (you would use the various data_stream naming options).

Also, when writing to a data stream the output will not load a template, but I believe a template is required. You would have to load it through one of elasticsearch's template APIs.