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For the check out in Magento 2.2 , I need to show this option as per image below.

However, I can't see it after setting up "check out as a guest" option in the Dashboard.

Please let me know how to display this option as a first step checkout. Any help will be really appreciated.

enter image description here

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For your requirement you need to added the new steps to the checkout with desire functionlity. Generally you need to do the following things.

  1. Create the view part of the checkout step component.
  2. Add your step to the Checkout page layout.
  3. Create mixins for shipping steps (optional).

More information you can check this one : https://devdocs.magento.com/guides/v2.4/howdoi/checkout/checkout_new_step.html

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