this query does not work
The error message is telling you why.  Simply put, you can't auto_increment character data.  What would you even expect that to do, really?
Even if it was implemented (which I imagine it could be, but the MySQL team never had a compelling reason to do so), what would you do with un-printable and un-typable characters in your primary key?  Imagine a record with the BELL character as the primary key.  That doesn't sound like fun.
wherever I see auto_increment works with only int
Because only integers can meaningfully be incremented.  They have a very well defined step for each increment and a very well defined boundary of values.  Other data types don't.
what if I want it to be char and int mix up
Wanting something doesn't make it happen.  Each column in a relational database has to have a defined type.  One column can't have more than one type.
why default value does not work
Because you defined the column as character data, but defined the default as a numeric value.  The default for character data has to be a character value.