If you are essentially asking how to stop the iPhone from silencing incoming calls only when the iPhone is unlocked.
That cannot be achieved with the “Always / While Locked” options shown in that setting.

I am curious to know what a few situations are where someone might deliberately want incoming calls silenced ONLY while the iPhone is unlocked, although it is a somewhat unusual requirement.
Some examples I can think of are:
- You are actively using the iPhone and don't want interruptions. When they're reading, working, watching a video, navigating, or using an app, they don't want an incoming call to interrupt what they're doing. But when the phone is sitting locked, they want the ringtone to alert them to an incoming call.
- You want calls to appear silently on screen while using the phone. They may prefer to see the incoming-call indication and decide whether to answer, rather than having the ringtone interrupt whatever they're doing.
- You use the iPhone for presentations or meetings. While the phone is unlocked and being used, they may want calls to be unobtrusive. Once they put the phone down and lock it, they want calls to be audible again.
- You are using an app or Game that shouldn't be interrupted. For example, while playing a game, recording something, taking notes, or using a navigation app, they may not want the incoming-call alert to interrupt the activity.
- They prefer visual awareness when using the phone. If the iPhone is already in their hand, they can see the call coming in, so a ringtone isn't necessary. When the phone is locked and out of sight, an audible ringtone becomes useful.
However, this is not a common iPhone use case, which probably explains why Apple doesn't provide a simple “Silence While Unlocked” option. Apple's available Focus setting is designed around the more conventional scenario: silence notifications while the device is locked.
So if someone is specifically asking for “silenced when unlocked, but ringing when locked,” can you clarify why they want that behaviour? Their actual goal may be achievable through a different iPhone feature rather than the Silence Notifications setting.