Hello and welcome to the list.
Your commands are attempting to transform from EPSG 2966 (https://epsg.org/crs_2966/NAD83-Indiana-West-ftUS.html) to EPSG 32616 (https://epsg.org/crs_32616/WGS-84-UTM-zone-16N.html).
las2las is correctly warning you that the underlying datums for the CRS selections – in this case, NAD83 and WGS84 – are different and it cannot transform from one to the other.
It probably won’t change any of the resultant XY positions, but the more correct target_epsg in your case is probably EPSG 26916 (https://epsg.org/crs_26916/NAD83-UTM-zone-16N.html).
If you actually want to switch from NAD83 to WGS84, however, that’s an entirely different thing… I doubt that's what you what.
Evon Silvia | Solutions Architect | ASPRS LAS Working Group Chair
NV5 Geospatial, formerly Quantum Spatial