You’ve got your Create Output step configured to use the value in %o for the name of the Output Preset that should be used.
%o, by default, would only contain the original name of the incoming data file. So it is likely not actually matching to any of your current Output Presets. You should see this mentioned in the logs that no match was found.
Try selecting the last one in your list instead: PDF Output.
That preset is currently defined to output to a folder, but by using the Through Workflow option, you’re overriding that instruction. You’ll get the PDF back as your datafile in the workflow.
Finally, your Send To Folder is configured with %o as the output filename, meaning even if a PDF is created, you’re going to have whatever name and file extension are stored in that variable. You’ll likely want to use a different filename mask. Try something simple for now, like %u.pdf. This should give you a random string and the correct file extension. You can refine it from there.