Wifi Connected but internet not working
Typical advice I give in this situation is to check your TCP/IP Settings under the wifi connection in your Network controls in System Preferences. Make sure you're using DHCP and no DNS servers are hard coded. Also make sure you don't have some kind of proxy software or VPN running on your computer.

Edit: try connecting your phone via USB and choosing that connection when you turn on hotspot and see if it works

Edit2: original poster posted a screenshot showing a hard coded DNS server. I recommend clicking on all hard coded DNS servers, clicking minus, and removing them.

edit3: the other issue may not be the wifi, but the modem to your internet provider.