I have a use case where I have a JSON and I want to generate schema and record out of the JSON and publish a record. I have configured the value serializer and Schema setting is
Let's go over the backwards compatibility rules... https://docs.confluent.io/current/schema-registry/avro.html#compatibility-types
First, the default isn't transitive, so version 3 only will look at version 2.
The backwards rule states you can delete fields or add optional fields (those with a default). I assume your schema generator tool doesn't know how to use optionals, so you're only allowed to delete, not add.
Between version 1 and 2, you've deleted the name field, which is valid.
Between version 2 and the incoming 3, it thinks you're trying to post a new schema which removes price (this is okay}, but adds a required name field, which is not allowed.