OBS is still running on the discrete GPU. In this mode display capture is not possible on a notebook with separate GPUs.
20:18:02.830: Loading up D3D11 on adapter AMD Radeon HD 7600M Series (0)
20:18:02.891: D3D11 loaded successfully, feature level used: 45056
For display capture to work, your Radeon software control panel needs to be configured so that OBS will run on Adapter 2:
20:18:02.826: Adapter 2: Intel(R) HD Graphics 4000
20:18:02.826: Dedicated VRAM: 33554432
In the current mode, game capture should work, but this depends on exactly what you're trying to capture. Not all applications are compatible with game capture.