An issue type is associated with "Issue Type Scheme", which is added to a project, as of now your Issue type is associated only to the Default Schema.
Navigate to your project settings and check which Issue Type Scheme is being used and add this issue type there.
Ref:
Thanks for the response, but the issue here is that my project does not contain the "Test" which is a feature of Zephyr. How do I add the feature on my project so that I can perform test cases?
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@moromomathobela Try navigating to Project Settings-> Apps -> Zephyr.
Under this you should find configuration related to the app. From what I'm aware of, Zephyr uses or has it's own permission scheme per project, so you may have to set that up on your project in order to be able to use it.
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