It looks like you disabled Spotlight indexing via Terminal commands, then tried to restore the default behaviour via graphical user tools (System Preferences).
That may fail as some guides for the Terminal are really 'thorough'.
In the screenshot above you have the commands:
sudo touch /Volumes/YourVolumeHere/.metadata_never_index
Disable indexing and searching:
sudo mdutil -i off -d /Volumes/YourVolumeHere/
Delete existing index:
sudo rm -rfv /.Spotlight-V100
To reverse these steps
sudo rm -i /.metadata_never_index
sudo mdutil -i on /Volumes/YourVolumeHere/
To remove the file that tells Spotlight to 'never index here' and turn on again the indexing and search on the drive.
The Spotlight folder should be recreated as needed. It may take a while and a reboot won't hurt.