My understanding is that to use the tools as batch processing, you need to provide an output file for the data to be written to - that is what the output layer column is for. When providing that I managed to run the directions from points 1 layer as a batch process with multiple inputs without issue.
So if you still can’t run it after entering the output file name, i assume it would be a problem with the source data so I would suggest trying it with a different dataset and see if that works