Why does my app get rejected during Shopify public distribution?

I have a web app where a user login. The user can connect to shopify through the web app. The user can allow to install my shopify app in their stores. My shopify app was Unlisted type that is connected to various merchants. Since the Unlisted App type has been deprecated I was trying to do public distribution the shopify app. However, my app got rejected while publishing the app saying “Your app redirects to this page upon installing. It should authenticate using OAuth first before any other steps occur.”

I am guessing it has to do something with the APP URL in the partner dashboard.

The issue primarily is when a merchant installs the app through the Shopify store rather than the web app.