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Prannoy, seeded eighth, will now take on third-seeded Japanese Kodai Naraoka.
Young Indian Priyanshu Rajawat also exited the season's last BWF Super 750 event.
The top-seeded Indian combination went down to world No. 21 Lu Ching Yao and Yang Po Han of Chinese Taipei in a 63-minute match.
Sindhu pocketed the first game 21-18 and the second game was level 1-1 before the Indian felt discomfort on her left knee.
Sindhu quelled a strong challenge from Indonesia's Gregoria Mariska Tunjung.
The tally of 100-plus medals in the Games appears impressive and brings forth plenty of cheer. However, this should not make us blind to the fact that we are still way behind international standards in most events.
Satwik and Chirag, ranked world No. 3, downed Korea's Choi Sol Gyu and Kim Won Ho 21-18, 21-16 in the final.
Indian archers will be in action in two gold medal matches on the day.
Satwik and Chirag became the first Indian pair to enter the Asian Games gold medal match.
India meet Japan in the men's hockey final.