Unable to set up personal hotspot with eSIM cellular data on iPhone

The Hotspot option is provided by your cellular carrier.

Not all carrier's provide a Hotspot option, and some who do require that you pay extra for the service as it is not an included option with their basic service.

Check with your carrier to find out more about the options you have.

Your phone doesn’t need the hotspot feature to have access to and use mobile data.

Hotspot is needed to share access to the carrier’s “data channel” with other devices. (By effectively serving as a WiFi access point & router)

However, the hotspot is a feature controlled by your carrier. (as it’s extending their network)

Resolution of any issues w/ the hotspot function will require assistance from your carrier.