This link is to the B1G Bowl Selection procedure:
https://bigten.org/documents/2019/10/7//2019_Bowl_Determination_Procedures.pdf?id=6568
For example, the Citrus Bowl rules are:
VRBO CITRUS BOWL(Orlando, Fla.) or CAPITAL ONE ORANGE BOWL (Miami, Fla.)1.When not hosting national semifinal game, the Orange Bowl will select the highest-ranked team from the Big Ten, SEC or Notre Dame to face an ACC team. 2.Citrus Bowl will feature at least five different Big Ten schools over six-year agreement.
Over the last five years, the Citrus has had Michigan, Minnesota, and Penn State. So, presumably, those three teams can't be considered for the Citrus (I don't know for sure where this year fits in the "six year agreement" although my understanding is that this is the last year of the agreement).
So that may be why you see Penn State getting bumped down to the Outback bowl as part of the projections.
And yes, given this, it's obvious that the loss to Minnesota hurt Penn State's bowl aspirations. At this point it's either win out and go Rose or maybe a shot at the playoff, or be in contention for a NY6 bowl as a two-loss team...or get bumped down to the Outback.
Oh, and for those keeping score, Wisconsin, Michigan, and Iowa can't go to the Outback, since the 5-team requirement needs to be satisfied and those teams have already been (Iowa twice!) in the past 5 years. Minnesota would probably be a good candidate for the Citrus. Puts Wisconsin and Michigan in interesting spots as well.