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there won't be recommendations for an internal req. It's always shown as purchase req. The difference will be in the source from. In the case of an IR it will source it from an org as opposed to an PR which will show a source supplier in the workbench. Key point to see the diff is the sourcing information which is present for the planned order.
Once you release it it will be implemented as IR. In this case you will also get an ISO.
As I am planning in Org2, for Item B(make item) which is getting transferred from Org1 ASCP should suggest work order or internal requisition?
Now it is showing work order for Item B under Org1 in planner workbench and upon releasing the suggestion from workbench, batch is getting created.
Logically Org2 will raise internal requisition for Item B(Org 1).