When that option
does
appear
The “Your homepage displays” radio buttons only show if:
- you create at least one Page, and
- WordPress detects a possible static homepage
Since you deleted all pages (which was correct), WordPress has nothing to switch to.
Optional: make it explicit (not required)
If you want that setting to appear anyway:
- Pages → Add New
- Create a page called Home
- Publish it
- Go back to Settings → Reading
Now you’ll see:
- Your latest posts
- A static page
You can still choose Your latest posts, then delete the page again.
But again — this is optional.
Bottom line
- Your homepage is already set correctly
- Nothing is broken
- This is exactly how modern WordPress block themes work