Elegoo Nano timer prescaler problem
Can anyone point out my mistake?


Your mistake is in thinking that it's possible to do more than you can within a 10uS period.

At 16MHz each instruction takes 63ns (for single-clock instructions). 10nS gives you a maximum of (10,000 / 63) 156 assembly instructions.  Into that you have to fit the preamble and postamble to store the registers to the stack and retrieve them again.  

The remaining clock cycles (maybe no more than 100) won't give you much time to do complex things. And given that many of the Arduino API calls are quite heavyweight, even just something as "simple" as a digitalWrite() can overflow that many times over.