On the Google forums, some people have complained that Android Auto is not working properly with the Pixel 7 or Pixel 7 Pro. Devices not compatible was probably the most common message. In the meantime there is already a good news from Google, the responsible error can be fixed.
“For all our users who have been facing “The app is not compatible with your device” error on Pixel 7/7 pro devices, we are happy to announce that the issue is now resolved.
Thanks for the replies and bug reports that helped us investigate and resolve this issue.”