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On the lms, under All types of course, I see two options: E-learning & Classroom program. Is there any option to add more course types. I want to add Interactive Learning as course type for games and qizzes. How do I add? Share steps.

You don't need othe course types.
You can use E-Learning type, then add the wanted learning objects in the Admin view of the course.
Find here some docs:
https://docs.formalms.org/reference-gui ... jects.html
https://docs.formalms.org/tutorial/114- ... ourse.html
https://docs.formalms.org/tutorial/113- ... ourse.html
https://docs.formalms.org/tutorial/112- ... -test.html

Thanks for sharing the docs. These are helpful. I am familiar with adding different types of learning objects to a course. However, I was wondering if at all there is an option to add a custom course type apart from E-learning and Classroom type. That's something I want to explore.

I'm still wondering what the goal can be for such option, I can only think of a "label" reason. Anyway, the short answer is no, you can't add course types by the front end, you need custom code.
If you're interested in this customisation, you can contact me privately.