The option to keep settings and apps is not present if the current edition (as returned by DISM /online /get-currentedition) is ServerSolution (a.k.a Essentials)

use DISM to upgrade with the KMS key to 2012 R2 standard:

dism /online /set-edition:serverstandard /productkey:D2N9P-3P6X9-2R39C-7RTCD-MDVJX /accepteula

then do in place upgrade to 2022.

Remember 2022 essentials *is* 2022 standard now. It’s a STD product key.

You can’t use EVAL media to upgrade either.