I am trying to create Point to Site connection on a Virtual Network that is having Policy-based Site to Site configured, so I am not getting any option to configure P2S. Any Recommendation How should I proceed with that.
I have already tried to make another Gateway in a separate VNet and peering it with the older one but not being able to connect to other VNet as Gateway transit is not enabled.
Azure point to site VPN only supports to use RouteBased (dynamic), refer to this link https://learn.microsoft.com/en-us/azure/vpn-gateway/vpn-gateway-about-vpngateways#models
So you need to use a route based VPN gateway to deploy P2S and S2S connection coexistence. If so, you need to create a new VPN gateway and remove the old one since an Azure Vnet gateway type cannot be changed from policy-based to route-based or the other way.
Additionally, if you have the Basic SKU VPN, the Basic SKU is considered a legacy SKU. The Basic SKU has certain feature limitations refer to Gateway SKUs by feature set. Also, refer to this:
The on-premises networks connecting through policy-based VPN devices with this mechanism can only connect to the Azure virtual network; they cannot transit to other on-premises networks or virtual networks via the same Azure VPN gateway.
So, you may use a higher gateway SKU for your deployment.