Ich werde daraus nicht klug.

What is the word-for-word logic behind that sentence? “I can’t become smart out of this”, meaning “I can’t make sense of it”? Sorry if it’s a weird question, I find it confusing and I just literally can’t make sense of it, lol. Could the sentence also mean “I am not (becoming) any smarter because of it”?

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First, the translation is a bit odd, normally ‘schlau’ would be used instead of ‘klug’. There’s normally no grave difference between these two words but this is a commonly used phrase and always used with schlau.
It’s used when confronted with a complicated matter without having even figured out where to begin with solving it.
There is no perfect translation, I’d probably translate it with ‘I can’t make sense of it’ (as you did) or ‘I can’t figure this out’. Just like in English we’d use ‘Ich kann kein/e/n Schluss/Schlüsse/Erkenntniss daraus ziehen’ (I can’t draw a conclusion from this), so it’s best to think of the phrase not literally but rather as a shortened (and more colloquial) form of this.

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aus jdm/etw schlau werden - understand something (pons dictionary)

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