So is it beneficial to convert sim to eSIM if I have the capability to do so already on my phone? And is it recommended ?

If your carrier supports it, it's fine to do. There's no specific advantage over regular physical SIM cards, but it's a way to prepare for the future. As no doubt phones in the future will rely solely on eSims.

It's hard to say whether it's recommended. It's just an option at this point and entirely up to you if you want to do it.