That message is correct, so the next step is to identify your iPhone, in order to ensure that it is capable of installing iOS 27. I'm not sure, but the fact that you don't have much storage on the phone may be an issue.
In your signature, it states iPhone SE, but the question is which generation because I from what I've read, the 1st generation iPhone SE cannot update to iOS 27. I realise your signature also states iOS 26, suggesting that your phone has iOS 26 on it, but you will need to be precise about this, because the 1st generation iPhone SE cannot install iOS 26 either. I believe that model can only go up to iOS 15.8.x
To find out whether your phone is an SE and which generation your phone is, there is a quick visual method (which I'll mention further on down), but to be extra sure, do the following:
Go to Settings > General > About and then tap on the Model No. in order to change the display from a part number to the model number, which starts with the letter A.
- if the number is either A1662, A1723 or A1724, that indicates a 1st generation SE (released in 2016), which as far as I can tell, cannot be updated to iOS 27 (or even to iOS 26)
- a 2nd generation SE (released in 2020) will have a model number of either A2275, A2296 or A2298, which I understand can be updated to iOS 27
- a 3rd generation SE (released in 2022) will have a model number of either A2595, A2782, A2783, A2784 or A2785, which I understand can be updated to iOS 27
The visual method is to look at the back of the phone. If it has the letters SE on the case, that indicates a 1st generation model.
You should be able to look in the phone's Settings > General > About and find which version of iOS is currently on it, probably under the heading Software Version.
If your phone is not an SE, can you correctly identify what model it is?
What do you find?