Health check says my i7 7700HQ processor is not compatible with windows 11. When I checked the specs it seemed to me it met or exceeded all requirements. Can someone tell me what I missed that makes it not compatible?
It's simple: you did not check the list of processors approved for Windows 11. You are looking at the list for Windows 10.
Having said that, your 7th generation Intel Core i7 should work perfectly well with Windows 11, as it meets all of the performance and hardware security requirements. Only Microsoft knows why it's not approved, and they are not divulging any useful information on this front.
You can still install Windows 11. The question being, however, whether you'll receive the regular security and feature updates. To install, just do a search on how to install windows 11 on unapproved PCs. Use the Microsoft links for that.