1) Yes, you can leave the traditional IRA contribution in the account. You cannot deduct the contribution if you have a retirement plan and your income is too high but you can still make the contributions as long as you have taxable compensation. Therefore, there won't be a penalty.
You will keep track of your nondeductible contributions on Form 8606 to avoid having to pay taxes again on that amount when you receive distributions. Each distribution will have an amount allocated to this basis (nondeductible contribution). This amount will be tax free when distributed.
2)You are not required to convert it to a Roth IRA. If you convert some of the traditional IRA, then only some of the basis will be allocated to the conversion and therefore you will still have taxable income from this event.
3)If you prefer not to contribute in future years then you can contact your bank to stop any automatic payments to the traditional IRA.
If you wish you can also request a return of contribution of your 2020 contribution with you bank until the due date of the return.
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