Your battery needs recalibration, there is nothing wrong with your battery, only the phone is giving the wrong readings. Update to ios 14.5, give it a few days and it will recalibrate automatically and your battery heath will change, hopefully for the better.
About recalibration of battery health reporting in iOS 14.5
Understand recalibration of the battery health reporting system on iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max.
Recalibration in iOS 14.5 and later
iOS 14.5 includes an update where the battery health reporting system will recalibrate maximum battery capacity* and peak performance capability on iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max to address inaccurate estimates of battery health reporting for some users. Symptoms of this bug include unexpected battery drain behavior or, in a small number of instances, reduced peak performance capability. This inaccurate battery health reporting does not reflect an issue with actual battery health.
While the battery health reporting system is recalibrating, you will see a message in Settings > Battery > Battery Health. Recalibration of maximum capacity and peak performance capability happens during regular charge cycles, and this process might take a few weeks. The displayed maximum capacity percentage will not change during recalibration. Peak performance capability might be updated, but this might not be noticeable by most users. If a previous degraded battery message was displayed, this message will be removed after updating to iOS 14.5.
When recalibration is complete, maximum capacity percentage and peak performance capability are updated. The recalibration message will also be removed, indicating that the process is complete.
If the recalibration of battery health reporting indicates that your battery health has significantly degraded, the battery service message will appear.
In a small number of instances, recalibration might not be successful and a new battery service message will appear. If this occurs, an Apple Authorized Service Provider can replace the battery free of charge to restore full performance and capacity. This does not indicate a safety issue and your battery can still be used.
* Maximum battery capacity is determined using a set of algorithms and measurements taken during use. Over time, these algorithms might be updated to provide the best estimate of maximum battery capacity.
Battery recalibration messages
After you update to iOS 14.5 on your iPhone 11, iPhone 11 Pro, or iPhone 11 Pro Max, you might see one of the following messages in Settings > Battery > Battery Health.
Battery recalibrating
If you see the message below, it means the battery health reporting system on your iPhone is recalibrating.
Your battery health reporting system is recalibrating Maximum Capacity and Peak Performance Capability. This process may take a few weeks. Learn more...
Recalibration for maximum capacity and peak performance capability will happen over time with regular charge cycles. If the process is successful, the recalibration message will be removed and your maximum capacity percentage will be updated.
Unable to recommend service
If you see the message below, it means the battery health reporting system on your iPhone is recalibrating. During this process, your iPhone is unable to recommend battery service.
Your battery health reporting system is recalibrating Maximum Capacity and Peak Performance Capability. This process may take a few weeks. Unable to recommend service at this time. Learn more...
If a previous degraded battery message was displayed, this message will be removed after updating to iOS 14.5. Recalibration for maximum capacity and peak performance capability will happen over time with regular charge cycles. If the process is successful, the recalibration message will be removed and your maximum capacity percentage will be updated.
Recalibration not successful
If you see the message below, it means recalibration of the battery health reporting system was not successful.
Recalibration of the battery health reporting system was not successful. An Apple Authorized Service Provider can replace the battery free of charge to restore full performance and capacity. More about service options...
This message does not indicate a safety issue. Your battery can still be used. However, you might be experiencing more noticeable battery and performance issues. An Apple Authorized Service Provider can replace the battery free of charge to restore full performance and capacity. Learn more about getting service for your battery.
Battery servicing
Because current battery health reporting might be inaccurate, we advise waiting until the recalibration process completes to contact an Apple Authorized Service Provider.
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