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Custom Post Type missing from Query Block Settings

ISSUE: custom post type in the Query Block Post Type parameter options is missing.

There are several likely causes for this issue.

CAUSE #1: Post Type has no published posts
FIX: Publish some posts

CAUSE #2: Post Type does not have REST API Support.
FIX: add REST API Support to the CPT

CAUSE #3: the post type is not publicly_queryable
FIX: if you want to avoid making the post type queryable on the front end, then you can use the following PHP Snippet to make it visible in the editor.

// make your_cpt_name posttype visible in the posttype list
add_filter( 'is_post_type_viewable', function( $is_viewable, $post_type ) {
    if ( 'your_cpt_name' === $post_type->name ) {
        return true;
    }
    return $is_viewable;
}, 10, 2 );