Thanks for the feedback Claude31, yeah it really does seem that I might have a bug or something wrong. I updated my Macbook and xCode during the night but had no luck. I'll take your advice and contact support. And when I have the issue solved, I will share the steps here. Surely I can't be the only one with this issue, but one way or the other I will solve it ha. Thanks again :)

Hey, my developer mode option has just appeared today. I didn't do anything different since my last post as Apple Support had no idea why I couldn't see the option and they said they will get back to me but I heard nothing back yet. It was strange and frustrating to see the option just appear like that after so much time and effort to solve this issue ha. All I did was the steps Claude31 has mentioned above (which I have done many of times) and it just worked today. Anyway just wanted to let you know that I now have developer mode option up and running on my device. I have heard there are a lot of bugs with the iOS 16 so I guess we can just add this to the list of rare bugs. Thanks :)