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I created a site with SharePoint that I want to external users to join; However, when I type everyone in the name in only option that appears is "Everyone except external users" I want to include external users how can I do that? enter image description here

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You may need to configure your tenant for it to available.

Already has been answered in this forum. Take a look at here

Set-SPOTenant -ShowEveryoneClaim $true
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  • I am planning to use SharePoint to have a site with a list of all forms where clients can open the site and submit a form; however, it doesn't seem to be possible because they need to be invited before hand. Which Microsoft app would you recommend where I could do that allow anyone to access the site even if it requires live email account to access as long it doesn't need an invitation.
    – Omar
    Oct 23, 2020 at 9:00
  • Which Forms are you referring to? Can you be specific on that? Are you collecting external user information like email address using any kind of Forms. I know you can use MS Forms to collect that and then use PowerAutomate (FLOW) to save that data to SharePoint list. However, I don't see any easy way to grant external users permission to a SharePoint Online site.
    – Matiur Rahman
    Oct 23, 2020 at 15:05
  • It's possible to do that using MS Graph (HTTP connection) as described here and grant permission here. I've not done that myself, but you can try.
    – Matiur Rahman
    Oct 23, 2020 at 15:05
  • It's necessary to grant permission first to make the user access the site.
    – Julie_MSFT
    Oct 26, 2020 at 9:41
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As a supplement, official article for your reference:

https://docs.microsoft.com/en-us/office365/troubleshoot/access-management/grant-everyone-claim-to-external-users#new-option-to-govern-access-for-external-users

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