Does Allah Know Who's Going to Heaven or Hell?

His knowledge of whether you are going or Heaven or Hell precedes our actions. It doesn't cause them.

Yes Allah knows our destiny, but He also grant us free will to make choices. He created us to test us and to give us the opportunity to chose between good and evil. Our actions and intentions determine our ultimate destination in the Hereafter.

Allah's attribute is to be All Knowing. He did create you with freewill, meaning Allah already knows what you will/ will not do. That's because He has knowledge of all things. However you are going to live your life the way you chose, but Allah already knows the conclusion. You must be thinking, "well what if Allah already knows I'm doomed for hell, what's the purpose then?". The truth is, Allah knows, but you don't. So why give up? By saying if Allah already knows, what's the use of trying then you're giving yourself an excuse to fail. The reality is, we're living in the present, neither you nor I know where we will end up and it is for Allah to let us know where we shall go.

He created us to worship him, he gave us free-will to act upon our choices and told us that there are rewards and consequences to our actions and he sent down our holy prophet with the final guidance & warning, we are the ones who decide our destiny. It’s as simple as that.

“I did not create jinn and humans except to worship Me.”

51:56

He has written endless possibilities, given you the free will to go through them. Now it depends on your actions and decisions where you end up in life and after. He knows everything about us, but doesn't force upon us, it's a blessing he gave us the ability to choose, so we can be a level even higher than the angels. His knowledge isn't fixed (meaning we aren't puppets that are fixed to do actions), but it's simply about His creation.