Is my Thailand Pass application correct with my low-cost hotel booking?

If in Bangkok, the hotel must pay the hospital partner about 2200 baht for your test, and pay the SHA Plus transfer company taking you to the hotel. That's why you can't find any qualifying test and go package for under about 3500 baht. Your booking cannot possibly include the test and transfer and doesn't qualify. Your Thailand Pass was approved by mistake. The airline shouldn't let you board and if they do, you will be stopped in Bangkok and forced to book the qualifying package which can cause big delays to coordinate it with your hotel.

Sounds like you didn’t book the test and go package, including airport transfer and test. Look at your hotel confirmation, it should tell you exactly what you booked. Your hotel should also have contacted you for details of your insurance and flight booking, so they know when to pick you up. You can find a cheaper SHA than 170 euros, maybe just rebook an SHA… lowest approx euros.

Are you flying into Bangkok or Phuket?

It's possible if Phuket because you have to pay for your own Covid tests before you arrive and have to pay for your own SHA+ transportation to the hotel so you're actually just paying for the hotel room and a few meals.

But if you're flying into Bangkok you're required to get an SHA Extra+ booking which includes Covid test and transportation, and since the Covid test costs 2500₿, the price you got sounds like you don't have the correct package.