Since the external hard drive appears on your desktop and in Finder, it seems to be properly connected and recognized by the operating system. However, Lightroom is not displaying it as an option under the "source" dropdown menu.
One thing you might try is to restart both Lightroom and your MacBook Pro. Sometimes, simply restarting the software or the computer can resolve connectivity issues with external drives.
If restarting doesn't resolve the issue, you could also try disconnecting and reconnecting the external hard drive to your MacBook Pro. This can sometimes trigger the system to recognize the drive again.
Additionally, you may want to check if Lightroom has the necessary permissions to access external drives. You can do this by going to System Preferences > Security & Privacy > Privacy tab, then selecting "Files and Folders" from the left sidebar. Make sure Lightroom is listed and has permissions to access external drives.
If none of these steps resolve the issue, it's possible that there may be compatibility issues between Lightroom and macOS Monterey. In this case, you might consider reaching out to Adobe Support for further assistance or checking their support forums to see if others have encountered similar issues and found solutions.