Is an Isothermal Process really possible? Heat cannot convert into
work with 100% efficiency!
Theoretically, heat can be completely converted to work in a reversible isothermal process. That does not violate the second law of thermodynamics. But it is not possible to completely convert heat into work in a cycle, per the Kelvin-Planck statement of the second law:
No heat engine can operate in a cycle while transferring heat with a single heat reservoir.
What this statement essentially says is that, in a complete cycle, some heat must be rejected to another (lower) temperature reservoir. That means all the heat absorbed from the high temperature reservoir in a reversible isothermal process is not available to be completely converted to work in a complete cycle.
We know that entropy cannot reduce on its own, but we see that in an
isothermal process, the heat seems to convert into work with 100%
efficiency. How is that possible?
The entropy does not "reduce on its own" during the reversible isothermal expansion. You need to consider the energy transferred to the system by heat separately from the entropy content of that energy. All of the energy transferred is converted to work, but the entropy is not reduced.
Although the internal energy and temperature (for an ideal gas) of the system is unchanged, the entropy of the system (gas) is increased due to the increase in volume of the gas during expansion work.
Hope this helps.