Hello Prachi!
We hope you are well too.
You ask very interesting questions, we proceed to answer you.
1. Is it good to enable xpack security feature in elasticsearch with our current setup?
It is very desirable to enable this feature. Note that Wazuh has the ability to report vulnerabilities of your monitored environments. These vulnerabilities can generate alerts that are indexed in your Elasticsearch and will be visible from your WUI. If access to Elasticsearch or your WUI is not well protected an attacker can access and view vulnerabilities in your monitored environments and exploit them.
If you enable Xpack security you will have more protection layers against these possible malicious accesses.
2. Since we have installed wazuh with basic license setup, how good is it to move with the opendistro installation process?
Open Distro offers a solution quite similar to Elastic Stack but it is an entirely Open Source tool. With Open Distro you will be able to enjoy certain plugins (security among others) that are not available in Elastic Stack and vice versa.
We hope to add in our next release the use of Open Search. I think it would be best if you could wait until
Wazuh v4.3 is released ( coming soon) to make the change.
I attach the OpenSearch documentation for more information:
https://opensearch.org/docs/latest/
3. Should we disable Nginx and use Kibana itself for authentication? currently using server port 5601 in kibana.yml instead of 443.
Personally, I believe that it is not necessary to use Nginx for that purpose. If you choose to enable Xpack, one of its advantages is authentication in Elastic Stack. You are probably paying for the additional security that Elastic Stack offers and any problems related to it will be supported by your payment.
If you use Open Distro or OpenSearch, authentication is enabled by default and they also have security indices that can log all types of access to your environment, making the use of Nginx non-vital.
I hope I have been helpful
Best regards,
Alfonso Ruiz-Bravo