ifconfig wlan0 down
iwconfig wlan0 mode monitor
ifconfig wlam0 up
iwconfig and than look for monitor in output

That's what gives

You're doing wrong.First make sure your interface is not up than try "iwconfig wlan0 mode monitor".
ifconfig wlan0 down
iwconfig wlan0 mode monitor
ifconfig wlan0 up

type these commands one-by-one and post screenshot

See my screen

Try these steps
systemctl stop NetworkManager.service
iwconfig wlan0 mode monitor
iwconfig - and look for mode:monitor

If that doesnt work for you than watch this video https://www.youtube.com/watch?v=NhHiXzqkx_s
You need to compile and install drivers form this repository https://github.com/kimocoder/rtl8188eus

When you try to turn on the mod, it gives the same thing. And when you install the drivers gives this

My drivers doesn't support kernel v5+ at this point. Working with rtl8812au and the wifite2 at the moment, but have a new version of the rtl8188eus to maintain when I've got more time again

I get this:
watch@watch:~$ sudo ifconfig wlan0 down
watch@watch:~$ sudo iwconfig wlan0 mode monitor
Error for wireless request "Set Mode" (8B06) :
SET failed on device wlan0 ; Operation not permitted.

This one worked for me on the Kali Linux 2020.2 VMware Image
https://youtu.be/BKQXcOH9zCE
https://github.com/aircrack-ng/rtl8188eus

This report has been filed against an old version of Kali. We will be closing this ticket due to inactivity.
Please could you see if you are able to replicate this issue with the latest version of Kali Linux (https://www.kali.org/get-kali/)?
If you are still facing the same problem, feel free to re-open the ticket. If you choose to do this, could you provide more information to the issue you are facing, and also give information about your setup?
For more information, please read: https://kali.training/topic/filing-a-good-bug-report/