The prophecy was made by a member of Yoda’s species 25.000 years ago and disappeared around 3000 BBY until 1000 BBY. Language changed a lot over all these millennia.
When it was found again by jedi historians they mistranslated the term @€4# into “Sith”, while it originally meant “Frog”.
So balance of the force was never meant to be reached by destroying the Sith but by eradicating all the frogs in the galaxy.
On Ossus, Luke intuitively felt the truth about the prophecy. That’s why he levitated all the frogs around Grogu and said he would become an important Jedi if he stayed.
Anakin Skywalker was able to become a force ghost not for destroying the Sith or saving Luke but because he showed mercy to Grogu and saved him during the attack on the Jedi Temple.
But one important Sith plays a role in the prophecy, Darth Plagueis aka the Frog Lady, who becomes the main antagonist of Mandalorian Season 3 and possibly all the future seasons. Her eggs contain the secret of eternal life.
So Din needs to bring Grogu to all the planets of the galaxy and let him eat all the frogs in the GFFA to bring balance to the force 😉