The settings you have in the screenshot are the default values used when you create a new event, so any event you use from now will use those above settings.
Each individual event has those settings available to it and if the defaults were different previously (or the add-on wasn’t enabled) when you created the event it will have saved those values.
Note that setting ‘Force login for registrations’ means the user must be logged into the site BEFORE they can start a registration. If you want EE to automatically generate a user for the registration they can’t have already logged into the site.
The issue is likely due to your event-specific setting being different from the default.
Edit the event itself and set the ‘Force login for registrations’ option to Yes, then save.
Then try another registration and the login step will display.
If you have the event set to not require a login then login step is skipped.
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