Hello @Ray Garg,
In the Custom Authentication Extension screenshot I see that the event defined is TokenIssuanceStart.
And under User flow “When a user submits their information” is being selected, if your User Flow is set to trigger for this option then you would need to define extension for the event "OnAttributeCollectionSubmit". Extensions configured for different events won't appear in the dropdown.
OnAttributeCollectionSubmit event occurs after the user enters and submits attributes.
OnTokenIssuanceStart event is triggered just before a token is issued to the application.
Kindly refer document: Concept-custom-extensions
If your user flow is set to trigger at “When a user submits their information” we would advise to configure extension for events OnAttributeCollectionStart and OnAttributeCollectionSubmit events. Please refer document : Custom-Authentication-extension-attribute-collection